Sending money anonymously in Canada can be difficult, but with the rise of decentralized finance and cryptocurrencies, there are many ways to send cryptocurrency anonymously.
In this article, we will discuss several popular ways to send cryptocurrencies anonymously. OCryptoCanada does not in any way encourage sending cryptocurrencies anonymously, and this article is for entertainment purposes only.
Is Crypto Anonymous in Canada?
Cryptocurrency is somewhat anonymous, but not completely. Since every transaction is recorded on the blockchain, anyone can see details such as the amount, date and time, and the wallet addresses involved.
So tracking transactions made using and within cryptocurrency wallets is relatively straightforward, but how can you find out the identity of the wallet holders?
One way to determine the identity of the wallet holder is to check if the wallet is linked to a centralized exchange. Any reputable Canadian centralized exchange will require you to verify your account before you can start trading. You will need to submit a copy of your ID, a selfie, and possibly another form of identification, such as proof of address.
Identifying the protesters’ wallets on centralized exchanges during the truck convoy was a way for the Canadian government to halt their transactions. They simply ordered the exchanges to freeze their accounts.
In addition, transactions above $10,000 should be reported by cryptocurrency exchanges operating in Canada to FINTRAC.
If you send crypto from a central exchange to another wallet, it’s easy to link it back to your exchange account. People just need to look at the blockchain to follow that lead.
This Government of Canada This makes it possible to track cryptocurrency transactions, but there are some ways to transfer cryptocurrency anonymously.
How to Send Cryptocurrency Anonymously in Canada
Decentralized exchanges
You can use a decentralized exchange such as PancakeSwap Or UniSwap to buy and sell crypto. First, install a decentralized wallet like Metamask on your web browser and transfer funds to that wallet. Metamask is compatible with multiple blockchains, including Ethereum, Binance Smart Chain, Avalanche, and Polygon, so you can trade multiple cryptocurrencies. Each blockchain will have its own decentralized exchange offering hundreds of tokens.
The hardest part is depositing funds into your Metamask wallet without first purchasing cryptocurrencies through a centralized exchange.
Decentralized exchanges are not regulated or controlled by a centralized authority, so they are riskier than centralized exchanges. There are many scams on decentralized exchanges, so make sure you know what you are buying before you start using them.
Cryptocurrency ATMs
One way to anonymously buy cryptocurrency with Canadian dollars is to use a cryptocurrency ATM. To do this, you enter the amount you want to buy, scan the wallet address you want to send it to, and then insert the cash into the ATM. You can send this cryptocurrency to anyone with a wallet or to your own decentralized wallet, but the fees are incredibly high (up to 20%).
A crypto ATM is by far the most anonymous way to purchase cryptocurrencies, but it is also the most expensive.
Peer-to-peer exchanges
Another way to trade cryptocurrencies anonymously is to use a peer-to-peer exchange like Localbitcoins. With these, you buy cryptocurrencies directly from another person at the price they are asking for. There are various ways to pay, including Apple Pay, cryptocurrencies, or credit cards, but cryptocurrencies are going to be the most anonymous method.
It is important to note that any wallet linked to a centralized exchange can be tracked, so using a peer-to-peer exchange is not always completely anonymous.
In some cases, sellers may agree to meet in person, where you can pay cash. Of course, this may not be a convenient option for everyone, but it would certainly make it anonymous.
Bitcoins are held in escrow until the funds are settled, making Localbitcoins safe for both buyers and sellers.
Privacy Coins
Monero is a privacy coin that uses a private ledger. This ensures that wallet addresses and amounts are not recorded in transactions. It is therefore one of the most private cryptocurrencies and the best way to send cryptocurrencies anonymously.
You can buy Monero using a centralized exchange and then send it to another wallet. The wallet address you send it to will not be recorded.
The danger is that The Canadian government will ban privacy coins. While a ban could result in it being delisted from centralized exchanges and make it harder to buy, Monero will still exist.
Bitcoin Mixers
A bitcoin mixer is a relatively new way to send cryptocurrency anonymously. Let’s say you want to send bitcoin from wallet A to wallet B. You send bitcoin from wallet A to a mixer. The mixer takes your bitcoin and mixes it with other people’s bitcoin before sending it to wallet B. This way, there’s no way to tell where the bitcoin came from.
Mixers typically have a fixed time, meaning the longer you are willing to wait for your bitcoins to reach wallet B, the more anonymous it will be.
You can also use anonymous bridges. With an anonymous bridge, you can exchange cryptocurrencies between different blockchains without being able to track where they came from. For example, you can convert AVAX to BNB. One popular anonymous mixer is Mixing blocks.
Keep in mind that any crypto that is mixed will not be traceable by crypto tax software. Additionally, you may not want to run your crypto through a mixer if you intend to cash out the money and use it for a mortgage. Since a mixer will prevent anyone from tracking the crypto’s origins, mixers are common tools used by money launderers.
Gift cards
You can buy gift cards with cryptocurrency Credit card. This website allows you to purchase gift cards from hundreds of popular brands and companies, including Best Buy, Cineplex, and Uber, with cryptocurrency.
You can send your crypto from your private wallet to Coincards to pay for your order, and gift cards can be used just like cash. You can give them to others or use them yourself.
Is it risky to send money anonymously in Canada?
Sending cryptocurrency anonymously is no riskier than sending cryptocurrency normally. It’s easy to get your wallet address wrong or fall victim to fraud, whether you’re anonymous or not.
However, the more anonymous you are, the less someone can help you if you make a mistake. Some centralized exchanges will have insurance against hacking, meaning you can get your money back. If you fall victim to fraud and a thief moves your funds to a centralized wallet, you can contact the exchange, which can freeze your account.
However, if you want to remain completely anonymous, you should not turn to a centralized exchange for help, as this means that your funds will be lost forever.
In a peer-to-peer exchange, you may have the option to meet the seller in person to pay cash. Of course, this comes with risks.
Anyone can put cryptocurrency on a decentralized exchange, and unfortunately many of them are scam coins. A decentralized exchange will not be able to help you in any way if you fall victim to a scam.
Cryptocurrencies are inherently risky, but if you plan to send cryptocurrency anonymously, be especially careful.
Application
The more popular cryptocurrency becomes, the more inevitable regulation will become. The more regulation, the harder it will be to stay anonymous, as governments around the world will want to track your cryptocurrencies in every way possible.
However, privacy and data protection are of great importance to most people, so we may find even more ways to transfer cryptocurrencies anonymously in the future.
