Author: prabhat 2015-08-27 08:10:57
Published on: 2015-08-27T08:10:57+00:00
The document proposes the creation of an AML-KYC module to control the bitcoin network and qualify use cases in an OFAC compliant way. It provides a specification for dealing with mining and transactions in sanctioned countries to follow OFAC regulations in bitcoin. The motivation behind this proposal is to put a control on elements that have been enmasse wealth by bitcoins, which might fund various non-mainstream social activities like terrorism, human trafficking, drugs, rights abuse, etc. The central idea is to create a bitcoin account controlled by the Bitcoin Foundation that will act as a fair play party and enforcement body to control the misuse of vast financial powers of bitcoin. This will be done by doing 0-sum transactions with a Memo Flag of BLOCK or ALLOW, and empty memo transaction having no impact. The new consensus protocol could seem unfavorable to some nodes due to many reasons, but it will act as natural cleanup of bitcoin protocol from illicit miners and users. The implementation of this proposal is under progress.
Updated on: 2023-06-10T21:08:02.409343+00:00