Getting blacklisted when using Incognito

The LocalMonero co-founder also said that it’s not inconceivable that BTC addresses that are linked to the incognito project will automatically get blacklisted (Binance, for instance, blocked withdrawals to the privacy-focused Bitcoin wallet, Wasabi). This would make any Bitcoin coming out of Incognito “worth less than ‘clean’ bitcoins.”

Just have read this article. Could this really happen? This would be really become a problem if at some point somene wants to sell his BTC, ETH etc. for FIAT on an traditional exchange. Is it inevitable to leave a trace, showing that incogntio has been used? Any solutions for this problem?


I don’t have the details but it sounds a bit over the top.

It would mean I can invalidate large amounts of BTC by just sending a small amount to every address in the BTC blockexplorer.

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hey @Anon, nice name btw :slight_smile:

Yep, there are coupl of possible solutions for this

  1. Decentralized custodians, which means the gateway to Incognito will be decentralized and do not link to one wallet address. Dive in details here Trustless Custodians: A Decentralized Approach to Cryptocurrency Custodianship

  2. In a long way, exchanges will have Incognito gateway, and users will be free to move funds to the exchange and out. If an exchange is regulated and users want to use it and pass compliance, there is no conflict.

I can come up with several more ideas in terms of how and why users should not give up with privacy.


I also had an idea, I believe I commented it in another post.


Thanks :wink:

This sounds really interesting, good to know that there are solutions. I guess right now we won’t have problems gettingn blacklistet. But long term once we have grown exponentionally it might be different.