Defending Privacy in Crypto
What I would like to see is reversible and auditable privacy in crypto: to participate I need to disclose my real identity to a broker I trust that follows all KYC compliance rules in the jurisdiction it operates, and my financial identity and transactions are private until law enforcement performs an unblinding transaction that is auditable on the blockchain, (in the vein of Chaum blind signatures), yielding my broker identity and unique customer ID, which the broker can associate with its records.<p>This way, I would have guaranteed and auditable privacy that the government cannot surreptitiously break, but there is an route to find identifying information with a noisy and court approved process. This would involve both a technological side and an organizational one - brokers would have to setup some type of clearing house that processes legal documents and requests for unblinding, approve new brokers and terminate those that do not follow relevant KYC practices, etc. A middle option between banks (no privacy, 100% agents of the government) and crypto (anonymous brokers, untraceable in competent hands, excellent for money laundry).<p>We cannot continue to pretend that the current crypto crop &quot;is just like cash&quot;. I most certainly cannot teleport 1 billion dollars in cash across borders, completely untraceable. If you cannot see a problem with this feature of crypto and the bad types of people it would attract and enable, then you might be suffering from a case of sociopathy.