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Checking for tainted bitcoins as a merchant?

I am a small business owner and plan to accept bitcoins as payment. Recently, I just learned that some exchanges may not accept bitcoins from certain wallets that they are considered tainted or coin joined bitcoins ? I tried researching more on this and came across this very good [article](https://cipherblade.com/blog/tainted-bitcoin-isnt-what-you-think-it-is/) — essentially it say I shouldn’t be worried about tainted bitcoins?

However, knowing that some exchanges like Coinbase may flag and report you if you send bitcoins that they considered tainted to the exchange. My question is how do i make sure that I will be able to sell bitcoins (i don’t really plan to though) I am receiving from my clients to places like Coinbase? Should I be worried about this? (i.e. what if a customer try to send coins from [this wallet?](https://twitter.com/whale_alert/status/1382386472419012611?s=21) )



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14 Comments

  1. I’m small business owner and honestly I don’t really care where the coin is coming from. To be fair, I’m not planning to exchange back to fiat but if it was the case and one exchange would complain, I would ask them to send the coins back and tried to open an account with another.
    If none of them (next to impossible) would take it, there are other options like Bitcoin ATMs or P2P exchanges.
    I’m simply doing honest business and not going to police the whole blockchain just because there’s a one in billion change some exchange or bank won’t like my SATs.

  2. until theres a good community list its just going to cost you. You could take steps before sending to the exchange like coin join, but guess what? that costs you as well.

    Most coins are legit, and most illegit coins aren’t going to be used for legit reasons. too easy for the store owner to comply and give away cctv footage etc. to authorities.

  3. The solution to this is more people need to mix their coins. It is not a crime to demand privacy of your finances. If the majority mix their coins, it’s no longer unusual to the service accepting them. Don’t do business with services that infringe upon your rights.

    If you got into a tough spot where you had no choice but to use one of these services with “tainted” coins, tumbling the coins through a mixer and then strategically bouncing them through multiple address’s should get the job done. They can’t forever blacklist a coin based on its history when supply is so limited and it is only feasible to look back so far. Eventually every UTXO will have a coin join in its history if you look back far enough.

  4. A couple articles below. In general, you want to make sure someone isn’t money laundering bitcoin through your business. It may be smart to see if any AML laws apply.

    “Who is obligated to recognize tainted Bitcoin, and what are they obligated to do about it, if anything? Businesses and service providers are obligated to adhere to respective anti-money laundering laws and regulations. That doesn’t necessarily mean they have to make sure they don’t accept any illicit funds (since that would be impossible), but it does mean they should be making a genuine effort to minimize money laundering by having a real compliance program. The genuine effort they make is critical. ”

    https://bitcoinmagazine.com/culture/bitcoin-fungibility-mixing-and-the-legal-limits-on-maintaining-privacy

    https://cipherblade.com/blog/tainted-bitcoin-isnt-what-you-think-it-is/

  5. If you are going to do this, you should clearly state on your website or a visible place in your business that you do not accept coins that have coinjoin history.

    Be aware that there are bitcoiners who would specifically avoid doing business with you on principal.

  6. coinjolined coins should be worth more cuz their history has been mostly erased or scrastched out lol

    coins with history may be more trouble cuz the blockchain dogs sniffing along those trails lol

  7. This is the new talking point being pushed by banks through the PR firms that employ losers like OP and many of the responses here. Just ignore them, their time is done.

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