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If bitcoin is converted to fiat money on an exchange, the exchange has irrefutable knowledge of your identity because they require the account name and bank account name to match.

The only way to anonymize a withdrawal of bitcoin-converted fiat would be to first transfer a non-exchange bitcoin wallet to the exchange-based bitcoin wallet using a bitcoin tumbler or mixer so that it looks clean. It would longer matter whether account names match to the withdrawer because the exchange, at least, would no longer know the real source of the funds. However, the fiat is still associated with your name. So the tumbler approach is not really anonymization, but merely anonymization of the source.

How else can bitcoin-sourced fiat be withdrawn anonymously?

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    You find someone who wants to buy your bitcoin in person for cash lol. – ieatpizza Jan 28 at 18:56
  • I got what I need from the answer and comments below: Bisq, Hodlhodl, Paxful are non-KYC, decentralized peer-to-peer bitcoin-to-fiat exchanges – user610620 Jan 31 at 17:52
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If bitcoin is converted to fiat money on an exchange, the exchange has irrefutable knowledge of your identity because they require the account name and bank account name to match.

Use Bisq and other non-KYC Exchanges. Also follow the best practices mentioned in this comment:

  1. Don't reuse addresses.

  2. Use coinjoin and payjoin when required.

  3. Run and use your own full node (with Tor), open source block explorer etc.

  4. Use an open source bitcoin wallet with active development: https://bitcoinwallet.guide

  5. Do not share information about your transactions on social media

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  • Please note: This is meant to be a comment to @Prayank. It is an answer only because I am not allowed by this website to "add a comment" to his answer. Can you please tell me about the non-Bisq non-KYC exchange you refer to? I'm 99.99% sure that Bisq is unique in the world. Does the other exchange you mention exist or is it a "work in progress"? – Bitter Jan 29 at 5:38
  • HodlHodl and Localcryptos are good enough if you can find offers else there are few mentioned here: github.com/cointastical/P2P-Trading-Exchanges Do your own research before using any of these. Basic due diligence is required while doing P2P trades. – Prayank Jan 29 at 5:49
  • But all of those (except for Bisq) are just centralized websites with "Register" or "Create account" pages that demand e-mail addresses, names and Google reCANCER? – Bitter Jan 29 at 6:07
  • You don't need to use a real name or your email address associated with real identity. Not sure about captcha. HodlHodl has no KYC, you own 1 key in a 2 of 3 multisig as a buyer/seller. – Prayank Jan 29 at 6:57
  • Paxful is another P2P exchange that allows you to sell BTC for WU, PayPal, or "cash-in-the-bank," among other options, with no central authority, but they do require kyc on some transactions, so anonymous transactions may have to be kept small. – Robherc KV5ROB Jan 29 at 13:48

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