- Bitcoin was known for its anonymity.
- CYBERPOL has now access.
- This information will be shared with law enforcement agencies and revenue agencies.
On Sunday, May 3, the President of CYBERPOL Ricardo Baretzky stated they now have access to all bitcoin wallets. Interest in cryptocurrencies in the modern world is growing exponentially, and it is difficult to find a person who has not heard about bitcoins. Money is the equivalent of the cost of goods and services, as well as a means of exchange and savings. Traditional currencies, such as dollars, euros, rubles, and so on, are called Fiat money and are issued by Central banks of the Nations. PayPal and others operate using Fiat money.
Bitcoin is the first cryptocurrency, the release of which is not controlled by any official financial institution. It is not tied to the GDP of any state. At the same time, bitcoin performs the main functions of money: it can be used for the purchase/sale of services and goods, as a means of saving and exchange. This currency is traded on exchanges where, depending on demand, its exchange rate is set in relation to traditional and other digital currencies.
Moreover, bitcoin was developed for the purpose of the gaining an independence from the banking system and reduce transaction fees. According to the bitcoin developers, keeping money in modern banks is associated with a great risk, namely: funds may be blocked, the Bank may refuse to conduct a specific transaction, information about account holders and money may be stolen by hackers, Bank fees for transfers and services are too high.
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Bitcoin uses blockchain. A simple parallel of the bitcoin workings is that the components of the blockchain are pages– blocks– and transactions serve as records. In order to create a new page in the blockchain ledger, the information about old blocks is processed. It is impossible to remove any component from this system: the blockchain securely stores encrypted data about all transactions that occurred in it. To create a new page of the blockchain, one needs to solve a mathematical problem. A person who copes with this task with the help of computing equipment receives a reward in bitcoins. Solving these tasks ensures the system’s performance and is called mining.
The reason Bitcoin became so attractive to certain users and also to the black market, is the anonymity feature. The governments had no access to the personal information of the parties and also allowed tax free transactions. It was even claimed that the Islamic State was using Bitcoin to fund their operations. However, it could be anyone who could be using it. All the system can see is the address or QR code. No names, surnames, or other information about senders or recipients. Such data protection is unthinkable when making transfers using conventional payment systems. You can use the bitcoin wallet number to find out the number of coins stored in it and view the transaction history. This data is freely available.
Nevertheless, Baretzky now claims that it is possible for CYBERPOL to monitor all transactions in a bitcoin wallet. The information obviously would be shared with the revenue agencies around the globe. CYBERPOL is working with 195 governments around the world. So does it mean there is no longer privacy afforded in Bitcoin transactions?
Additionally, China launched its own cryptocurrency, Yuan Crypto, and it does not have any privacy features and all transactions are monitored by the Chinese government at all times.
Cybercrime is also willing to share this information with licensed CYBERPOL investigators, who are investigating cyber crimes and tax evaders. It is great news for the victims of cyber crimes, as such segments continue to grow unfortunately.
If true, this would mean bitcoin and anonymity are no longer synonymous.