About anonymity

Hi, I have a couple of newbie questions.

  1. If I buy BTC with Bisq and pay with bank transfer (e.g. SEPA EU), is a link established between my wallet address and my identity? Can the government tell me “we know you bought btc on this day, but you haven’t declared ownership”?

  2. if I use as security deposit some BTC I bought on an exchange, and are therefore associated to my identity, does this deanonymize the BTC I am buying via BISQ?

Thank you

The two directly involved banks for the SEPA transfer will only see a transfer from a private person A to a private person B with a provided payment reason that is a short and random looking succession of characters that is not linked to Bitcoin or Bisq.

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Thanks. What about the security deposit? The btc I lock as deposit are not anonymous. Is there a link (in the blockchain or elsewhere) between those and the address where I receive the btc that I buy?

  1. The other person you trade with will be able to connect the info you provided to the bitcoin you bought.
  2. This will create a link between the coins you bought on the exchange and the coins you’re buying on Bisq, especially due to Bisq’s trade protocol unique fingerprint.
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So it seems the first btc purchase is better done with cash. After you have some anonymous btc to use as deposit, you may go on with Bisq…

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Or you can mix your coins through tools like JoinMarket, Samourai Wallet, Wasabi Wallet.

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AFAIU mixing doesn’t help. The government will tell you "either you still own them, and then you didn’t declare possession (which is required for btc and any foreign currency, in some countries); or you sold them, and then you didn’t declare this. Either way, you are in violation.
AFAIU mixing helps with tainted/banned coins, but this is not the purpose here.

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…or you have lost them “by accident”. In a country in which you have to pay capital gain taxes on Bitcoin you can also report a capital lost, can’t you?

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  1. The link between those 2 coins happens only if
    one uses same wallet for those 2 transactions
    and later links them together by using both address as inputs for a single transaction

bisq isnt a US only software