Bitcoin wallets interacting with this specific protocol are now flagged for “high-risk” seizures by compliance algorithms

tldr; Bitcoin wallets interacting with privacy-focused protocols, such as mixers, are increasingly flagged as ‘high-risk’ by compliance algorithms. This is due to regulatory actions in the EU targeting mixers, which are seen as tools for money laundering. Centralized mixers face shutdowns, while decentralized ones are monitored. Exchanges like Kraken and Coinbase are required to block or flag transactions linked to these protocols, causing friction for legitimate users. This enforcement reshapes Bitcoin liquidity, pushing privacy-focused transactions to less regulated regions.

*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.