Concerns about cryptocurrencies and illegal activities, such as money laundering and terrorist financing, have led regulators to impose know-your-customer (KYC) laws on companies and sanction exchanges such as BitMEX and Binance. However, DeFi smart contracts do not follow the same rules.
Despite the lack of regulation, government agencies can track and confiscate crypto assets. A recent example is Israel's seizure of millions in crypto assets from Iran's Quds Force and Hezbollah.
The blockchain is transparent and does not forget information, making it difficult to hide transactions completely. Although some services allow the buying and selling of Bitcoin without identification, government agencies can monitor and act whenever and however they choose.
Despite the lack of regulation, government agencies can track and confiscate crypto assets. A recent example is Israel's seizure of millions in crypto assets from Iran's Quds Force and Hezbollah.
The blockchain is transparent and does not forget information, making it difficult to hide transactions completely. Although some services allow the buying and selling of Bitcoin without identification, government agencies can monitor and act whenever and however they choose.