{"id":19597,"date":"2023-04-08T04:14:07","date_gmt":"2023-04-08T04:14:07","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/reports-claim-chivo-bitcoin-wallet-is-flagging-wasabi-transactions-in-el-salvador-bitcoin-news\/"},"modified":"2023-04-08T04:14:07","modified_gmt":"2023-04-08T04:14:07","slug":"reports-claim-chivo-bitcoin-wallet-is-flagging-wasabi-transactions-in-el-salvador-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/reports-claim-chivo-bitcoin-wallet-is-flagging-wasabi-transactions-in-el-salvador-bitcoin-news\/","title":{"rendered":"Reports Claim Chivo Bitcoin Wallet Is Flagging Wasabi Transactions in El Salvador \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to several reports, the Salvadoran government-issued bitcoin wallet, Chivo, has been freezing wallets and requesting that owners verify the source of funds. The founder of El Zonte\u2019s Bitcoin Beach stated that the government\u2019s bitcoin wallet software is flagging and freezing wallets that receive transactions from Wasabi, a non-custodial bitcoin wallet that utilizes Coinjoin technology to obscure onchain transaction monitoring.<\/strong><\/p>\n

Bitcoin Beach Founder Says Salvadoran Government Is \u2018Bowing to U.S. Pressure to Thwart Privacy\u2019<\/h2>\n

Bitcoin (BTC<\/a>) is now legal tender in El Salvador, and the government offers infrastructure services such as bitcoin automated teller machines (ATMs) and a mobile bitcoin wallet called Chivo. The Chivo wallet has faced criticism<\/a> in the past, and the International Monetary Fund (IMF) has raised concerns<\/a> about the wallet\u2019s regulatory oversight. Recently, the founder of El Zonte\u2019s Bitcoin Beach and other community members reported<\/a> that Chivo wallets were being flagged and frozen.<\/p>\n

\u201cThis week a local carpenter we know had his wallet frozen for $1000 transactions,\u201d the Bitcoin Beach Twitter account stated<\/a> on April 3. \u201cThey asked him to prove the origin of funds. The friction will push people back to the traditional banking system. Their bank transactions receive less scrutiny than [bitcoin] transactions. Small normal legitimate transactions that they the need to spend hours trying to justify.\u201d In another tweet<\/a>, Bitcoin Beach reported that the Chivo software is flagging and freezing wallets that receive transactions from Wasabi, and apparently, they are \u201cbowing to U.S. pressure to thwart privacy.\u201d<\/p>\n

Furthermore, the founder of Bitcoin Beach, Mike Peterson, addressed the issue<\/a> during a live broadcast. \u201cWe as bitcoiners need to keep putting pressure on Chivo, on the government, on these people because they are getting pressure from this other direction,\u201d Peterson stated. According to reports, Chivo wallet users who have their funds flagged and frozen must provide documentation on the origin of the money. However, not everyone subscribes to the theory that Chivo is blocking Coinjoin transactions originating from Wasabi.<\/p>\n

\u201cI have sent post mix coins to Chivo addresses without any problems,\u201d explained<\/a> the Twitter account Escape to El Salvador. \u201cI\u2019m not saying the person Mike paid didn\u2019t get their account frozen, but there simply is no proof that it was because of that. Believe it or not, there are many people who say things on the internet w\/o verifying,\u201d the individual added. Wasabi is a bitcoin wallet that enables users to mix their unspent transaction outputs (UTXOs) with others using a technique called Coinjoin. Additionally, blockchain analysis firms like Chainalysis have claimed<\/a> that Wasabi\u2019s mixed transaction method can be de-anonymized or de-mixed.<\/p>\n

Following Bitcoin Beach\u2019s tweets about the matter, a Twitter account named Peter Pan remarked<\/a>, \u201cEl Salvador is not winning\u2026\u201d However, the Bitcoin Beach Twitter account disagreed with the assertion, insisting<\/a>, \u201cEl Salvador is definitely winning- just bumps in the road along the way. Still the easiest place to live on a bitcoin standard by a large margin.\u201d<\/p>\n

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ATM<\/a>, Bitcoin<\/a>, Bitcoin Beach<\/a>, Blockchain<\/a>, Chivo<\/a>, Chivo ATMS<\/a>, chivo wallet<\/a>, CoinJoin<\/a>, Criticism<\/a>, Cryptocurrency<\/a>, de-anonymized<\/a>, de-mixed<\/a>, Digital Currency<\/a>, documentation<\/a>, El Salvador<\/a>, el salvador bitcoin<\/a>, flagging<\/a>, freezing<\/a>, Funds<\/a>, Government<\/a>, IMF<\/a>, infrastructure<\/a>, legal tender<\/a>, pressure<\/a>, Privacy<\/a>, Proof<\/a>, Regulation<\/a>, Salvadoran<\/a>, Traditional banking<\/a>, transactions<\/a>, unspent transaction outputs<\/a>, utxos<\/a>, Wallet<\/a>, wasabi<\/a><\/div>\n<\/div>\n

What do you think about the situation with Chivo freezing wallets and requesting proof of the origin of funds? Do you believe this is a necessary step for regulatory oversight, or do you think it goes against the spirit and core tenets of bitcoin privacy? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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