Bitcoin Forum

Day in day out there are new projects requiring kyc from investors
Exchanges requiring kyc, for some in order to maximize your ability to withraw large sums of cryptocurrencies and some even before you can trade on the exchange
The bigger question is how safe are our kyc documents?

Your documents are never safe, as this is a cryptocurrency and any exchanger and project can then sell your data. I personally try to always bypass projects that require my identification, since it is not known who will own my data further.

Any document submitted for KYC aren't safe. The team who are taking KYC document from the investors and bounty hunters may sell your documents to the others.

ONe who knows how the internet and websites work says that anything on the internet is unsecured even if the site we are giving the documents keeping it safer and cared about our privacy there will be security breach ad can steal all those documents if they want.

You don't have to ask this question if you trust the exchange you are using, of course there's a risk because they are holding your information, and if they will think of violating the law which is to keep information private or confidential you are at risk but they are at big risk also and I don't think they will do these stupid things and just sacrifice their business.

Trust only an exchange that could loss their business if they leak information.

This question has been discussed a hundred times here in the forum.
You can simply avoid KYC/AML if you feel don't safe to them, no one force you to join in the ICO's project that having the implementation of submitting personal data. Submit only when they have already trusted the site and operate almost a year without fraudulent activities. In crypto space now usually they implement KYC/AML to the users which feels us unsafe.

Data has become more important in the present day,with even popular websites compiling data on those who regularly use their sites. So it's no surprise people are wart about who/where they submit their personal details.

It is also becoming more difficult to circumvent the KYC on exchanges. So do your background research, the history and track record of the website. Also endeavour to read the privacy policy this gives you an idea of your legal stance.

There is no proof that our KYC details is in safe hands and its a must for most of us because 80% of exchanges use KYC now and its only a matter of time before KYC will spread to other exchanges too

My kyc details are my personal information so I gladly skip any exchange or bounty that places such requirement before. The more reason why I will always clamour for decentralized exchanges is because, they hardly require kyc.

it still depends on where you're submitting your documents, I don't go for airdrops and bounty campaign, there's no guaranty that they will not run away, past actions of airdrops and bounty campaigns have proven that they are not 100% safe, if it exchanges and they are considered legit and top exchange in the market I can do KYC even if there's a probability of the exchange closing down.

Most people stay far away from projects and exchanges that require KYC as most of them end up using that personal details to their own  benefit. For me a KYC exchange and project is a no no

I think the documents we send to the project seem insecure. But with that, I have never found a case like the project selling our data. And KYC for investors seems mandatory, if we want to invest.

some projects ask even for airdrops due to the high number of fake referrals, people with multiple accounts...

I only do KYC to some trusted exchanges, I don't gamble my identity to the other exchanges that only emerged lately who knows if they turned out to be a scam? and run away with your money and the worst part is they will use your Identity to take peoples money.

It's not safe of course, there are a lot of exchanges and projects being hack so your data is always exposed. And you don't know what they are going to do with personal data, perhaps they can sell it to another party to make money out of it. And what happens if it ended up to the hands of the criminals?

first of all you should never compare exchanges asking you for KYC documents with some random ICO project asking you for your KYC documents. they are very different. the exchanges are legitimate businesses with real business going on! they may not all have to be forcing KYC but when they do, you are still giving your documents to a place that is legit. in comparison an ICO project that requires KYC is just scamming you because there is no business, no company, no known person,... there is some random dude on the internet that you are handing your personal information to!!! and they ALL sell it on the dark market without exception.

secondly safety is another matter. assuming you gave it to a legit place, it still can never be 100% safe. many of these exchange databases were hacked. many even leaked it or sold it themselves. for example Bittrex sold their user's KYC documents online and pretended it was a leak/hack.

It's not safe because if you are not located in the countries that supported GDPR (EU) and then there is no regulation that gives guarantee for your identity. I can say that our identity is still lack of security because it has bee holding by the third parties.

If KYC for a bounty depends on the manager asking for it, because with KYC at least it has prevented the existence of fake accounts or participants entering the bounty, as well as those who ask for the KYC when we trade, and it will obviously be safe if we trade in exchanges already popular or already large, in this case everyone is obviously worried if our KYC is used on things that are not good, but it all returns to their individual, because if we are still doubtful about something then don't follow it.

Currently, KYC is a tool for seriousness in crypto activities, whether it is a bounty participant, investor or exchange. When the exchange requests KYC, this shows that we are not robots. In my opinion, the KYC that we provide is safe, as long as the exchange is serious in its function.
For those who are afraid of KYC security, it means that they are not serious in participating.

In my opinion, the purpose of sending KYC documents is to ensure that each member is genuine. From the positive side, that KYC goal to be able to identify members if there is an error or fraud so that the manager or managing KYC can recognize it. I am also sure that the KYC documents that we send are safe and secure.

This is a major challenge in this crypto space. Idex has just started their KYC system, I have had to forfeit some of the bounties I did because they suddenly requested for KYC, I feel they were up to something bad, I have to protect my identity from fraudsters. Although KYC maybe requires to eliminate project cheaters which is understandable.

Your identity is really important and I don't think anyone who would go against KYC if the project is shady af is not serious. Your seriousness should reflect on your actions, but when a case like that comes out, you should think twice before you submit your KYC especially when the project team identity is not even clear.

Don't gamble too much on your identity. I'd never go with KYC even if a project told me they'll give $1000 worth of tokens for a simple click when they don't even told me who run the business.

@OP, can you explain more what your title means? You are discussing another topic in your post.

From what I know, KYC only has one purpose and that is to comply with existing AML.  

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Exactly. Those who take KYC lightly are thinking that the other party are completely honest people. They must not have heard or personal information being sold. 

The fact that the documents are submitted to this 3rd parties including the team means its not already safe. If you were determined to keep anonymous 4 years ago, you may not be able to do this because of the selfies and video they ask for KYC. Some say it will pass and we'll get over this.

Now, I'm not sure what he meant about this "diverted" but if he have a distrusting behavior about these ICO and exchanges, I guess he meant if the KYC data we have are sent to some other parties like the government or CIA or so.

Personally, I think that data security should come first. Since the identity check must be flawless. And when the user enters his data, he must also be confident in the security of his data. And even let them pay even more attention to this about correct documents.

This is a concern when it comes to completing KYC when participating in a crypto project. Nothing guarantees 100% that our identity data is safe. Although they make sure that confidentiality will be maintained, is there really a guarantee? And do not rule out also the possibility that data conceded, hackers, and so on using the data for things that are not desirable. But surely there is also something safe, depending on the KYC developer.

In fact, this depends on how much security the project or exchange which you share your documents. Because those platforms have to protect your personal information. But we don't really know how secure these platforms are. Because we don't know whether these platforms follow the security protocols or not. Thats why, we should do research before sharing your documents with any platform.

As long as its not in our hands, our kyc documents are never safe. My only concern is that it should not end up implicating us later in the future. Is it going to be worth it? Getting rich in crypto but losing our identity?

It will certainly be sold, sooner or later. When we agree to send KYC to them, we must accept that our personal information is being sold on the black market.

thats right, we must be careful with our personal data my friend, keep our privacy safe
a case already happend with facebook, and everyone knew about that
so, i will not do a KYC procedure for unknown project or something else

I'm Agree with you. As long as the Exchanger is popular, I think it's safe to do KYC.
But for Airdrop or Bounty, I think it is not really necessary to do KYC because our personal information has nothing to do with that job.

What worries me the most is that my personal details are sold/shared if the exchanges I've been using (who I submitted my personal details to) get's hacked.

Look into trading on decentralized exchanges, and you'll bypass all these problems.

I'm personally looking forward to the Stakenet Lightning DEX, which will have near instant transactions, with close to 0 fee's using lightning over a masternode based network that runs it all. This means you don't need:

To sync with the network
Register to the network
Do KYC

I'm running 2 masternodes already, and once the Lightning DEX get's up and running a second stream of income will be available through the DEX fees. All the fee's are used to buy-back XSN from the order books, and distribute it to the masternodes providing the service. Ads liquidity, volume, and passive income.

Do your own research on this one, looks pretty promising.

I tried Komodo's DEX using atomic swaps, but it lacks a lot on speed, when waiting for confirmations, which is a bit of a pity.

The essence of KYC has been diverted and the most painful part is that our details are been hacked and sold to the highest bidders. But irrespective of that there are still very good projects and exchanges that care so much about Customers details

Just as you have read so far; kyc documents movement Cannot Ben described or explained
Most times it is sold off in the black markets. I strongly believe the sale will depend on your nationality’s

To entrust your documents or not depends largely on how much you trust the project. No one is insured against anything, so trusting your first project is not worth your documents, whatever they promised you.

Regarding cryptocurrency, we cannot guarantee security. We better avoid services that ask for our data because it is very risky, except when we use a service that has been recognized by the government, at least they have been tested for security and have a good reputation from the users of their services.

KYC is exactly opposite of what the crypto stands for in the beginning.

If KYC becomes obligation then crypto is becoming similar to banking institution.
Exchange can lock your account because you are from country that for example USA has embargo on or other type of restrictions.

It happened already on some exchanges where people where KYC verified and because of their resident country their funds were frozen.

Regarding the safety of the document you upload to them i think we don't even need to doubt that you have no control what they will eventually do with that kind of information Maybe not now but in next 2 or 3 years to come...

Once you submitted your KYC to any platform or program you are already exposed to risk. Now, even a 5usd airdrop they required your KYC. You have to be very careful your personal documents.

Kyc is important in most financial transactions . It helps to reduce cases of fraud but truth be told kyc process in Crypto is becoming too demanding that one could begin to wonder if there is more to it than just trying to get to know ones customers. I just wish that people's documents are not being used for something else

It depends to whom you submitted your KYC documents. If it is a new unknown exchange or a program, there is a high chance of the documents not being safe with them. Again, if it is a well known reputed institution or an exchange or a project, your documents will be safe but can not be guaranteed. I would suggest you to avoid those new exchanges/projects that requires you to submit KYC documents. There is a high chance they will sell your information after scamming you out.

I dont just a ven know why we call this a decentralized technology as many exchange now are even not good for trading and even bounty are asking for KYC which I dont think is even good for any thing to think off, and base on this fact they have made the purpose been rubbish because I dont know why dex will be asking people to provide ktc when blockchain purpose is mainly on privacy.

Personally I don't think there is guarantee of safety on any information divulged in the process of submitting kyc. Requiring kyc from investors are actually meant to know where they are from as we all know that some countries are not crypto friendly but when bounty hunters are required to undergo kyc, I do not agree with that.

Generally, it is not safe and it will never be safe, especially in the ICO's, they are unregulated, you do not even know who are the people behind those faces, they are not compliant to any government and so they can sell your vital information in the market, without you knowing anything about it.

I think there is already a law to support KYC and keep your information private in place for European countries and USA. I am not sure if it applies all around the world but that is basically all important places except Asia. There are laws that says if anyone sells or sends your information to a third party that is not agreed then they will be punished harshly, like both money and jail time at the same time.

Hence, no place would give your information away aside from government requesting it for something suspicious. Now considering they are defended in every aspect, there is still a chance it gets in the hands of bad people by hacking, if a website that collects that much personal information gets hacked then there is absolutely no way of stopping the hackers and you should be very careful.

I am usually very sceptic about any platform that requires my KYC details with exception to some notable exchanges social sites. Though I understand some privacy policies that go with this but I am not certain to how extent they can be protected, so the best is to stay off from bounties or Airdrops that require them

The sad fact is that most of the projects demanding for KYC verification are owned by anonymous teams that prefer hiding under the veil of anonymity but they would not extend the same courtesy to their users and community. It's really sad TBH.

The security of our data is correlating with exchange or ICO that requires those documents. If you believe in this exchange/project there should not be any problem, but be careful and do not provide a full KYC to strange and questionable projects.

Currently, we cannot know how secure we are, Maybe we have to learn to adapt to it. I hope there will be regulations on this issue in the near future.

I have seen the example of actually selling the private data to other entities, which was provided during the KYC process of the project. I have now keeping the projects aside, which requires KYC. We should be careful about the data we provide.

One of the concerned why it's not good to submit your information to the team which you also don't have any idea if whether legit or not, if they are requiring KYC but also hiding behind without any details about their personalities then why apply this requirements, it's safe to proceed when you know the team and you are trusting them for your personal data, it's still users preference whether to comply or not.

Almost all new projects require KYC. I think your KYC will be safe. Many are like you in terms of KYC. It's better not to participate if you are in doubt about a project that needs KYC. But what you need to know is that projects that need KYC have greater potential for success.

If you care with anonymity and don't want to give your precious credential and kyc is not your cup of tea, even if you give it to trustworthy exchanges don't mean it will be safe. Your data could be hacked in the future and would be used to make criminal crimes. I mean, giving your information online is already risky tho.

for as much as security, in my opinion, most are safe because usually the project hires the services of a company that is specialized in managing kyc, but if your kyc that manages it is a direct bounty manager, be careful, maybe your data can be misused because I have experienced it

I do not believe that our identity is not safe, not to accuse but identity is an important privacy and can be bought and sold for easy misuse.

Kyc has been deverted in something else which is not suppose be, but the hunters aspect has no choice has every real hunters will want to get their token reward base on the hard work done , but on every exchange which require some kyc is necessary as that will be a kind of security for money laundering.

Our KYC documents will never be safe. I see a way out in making transactions in the amount of cryptocurrency less than one thousand dollars.
On June 21, the Intergovernmental Organization for Financial Action (FATF) adopted recommendations for which, for transactions of less than one thousand dollars, the KYC check will not have to be passed. By June next year, more than 200 states will have to bring their domestic legislation in line with these recommendations, or they will pay heavy fines.

We cannot ensure how safe is our KYC document. Exactly, we don't know the exact team or people behind the projects or behind the KYC requirement team. However, as long as they are real people, they stated that they guarantee the secret or security of the KYC document I think this is the one that we can trust. However of course, normally we will feel worried because sometimes, they can be hacked easily.

We have to be very careful when doing KYCs since our documents might not be safe. Some people do KYC even for unverified projects especially when they require that for free tokens (airdrop), this might be a trick to get your personal details. Well, for some reputable projects which comply with KYC requirements from authorities, KYC is not entirely bad. An example is doing KYC to make bigger withdrawals on centralized exchanges, it's fair since it's optional for most. Where it becomes bad is when KYC is a must to withdraw any amount at all.

They are foced to do that by the regulators because the government want to prevent money laundering which usually happen in a decentralized exchange albeit doesn't hinder the fact that money or cash is the most used way to launder money because it leaves no trace unlike cryptocurrencies.

If Idex refused to do that they will be in problem and I guess no one even want to get handcuffed and jailed just because refusing the KYC. even it is decentralized exchange there's nothing they really can do. That exchange still operated and owned by individual or team.

The fear with kyc as been that the company may sell the information provided for them, but I think the safety of your document depend on the company you are dealing with, in as much as the scammers has already corrupted the cryptocurrency industry and making it look unsafe, we still have so many countries that operates with integrity and would protect your document with everything within their power from being exposed to those that will misuse it.

We have already found ourselves in a situation where we cannot really do without this KYC, all that we just need to do is make sure that we also protect our data from our end, we only give out information that we feel will not be used against us in future, and also ensure that the company we hand over our information to are genuine and ones that will use it in a legal way only.

As to the safety of our personal information, that we cannot guarantee. They may claim utmost care and privacy in treating our personal information, but it still remains open to hack attempts. However, since they are requiring KYC, traders and users of centralized exchanges are left with no other option but to comply. But if you cannot afford to divulge any of your personal information, opt for DEX or peer-to-peer transactions.   

By now you should know that given your information to someone you don't know can be very risky because they can do anything with it.

Yes they know, but how can they avoid it, look at the industry you are, you will see that most new projects that you see now request for KYC, and even DEX exchange that has nothing to do with KYC has also started requesting for KYC. So tell me how people can avoid it, except maybe they do not want to have anything to do with cryptocurrency things at all.

So I think right now, it is not all about accepting KYC here or not, but the type of information that we give out. I believe that they all have different I formation being required for their KYC, and if we see any projects that is requesting for any vital information that we feel could dent our image or not that necessary, then we should possibly avoid such projects at all cost no matter how promising it looks.

The real purpose of KYC is not to keep away from the bot or scammer but the real purpose of KYC to be compliance with the regulation in some countries, not only that but that's to prevent some people from some countries were banned crypto or these countries don't give the approval to invest in the crypto or put crypto in the red area.
But not only KYC because this time there is AML verification too.

KYC is just whast the government needs to know your information. They know how much you trade they can control your funds, this is simply a way to control you through an exchange.

You don't need to participate in this. People need to realize that KYC also means no control of your funds and oversharing all your data, you can trade without KYC in Switch.ag for instantly trades or actual DEXs like SwitchDex.ag. Also don't trust all the DEX that are out, recently idex went kyc and more to come out soon. Be careful in this market.

yes, now to invest crypto or participate in an investment in a new project it is indeed a little complicated. not like before, which we can buy very simply, and we can get profits quickly. now the project is very considering how to adjust their project to the regulations in their country or the user's country of their platform.

If it is not a security token offering that has gone through all the regulations required by the governing bodies, I do not like providing my personal details to them, to be honest, I perform KYC in only exchanges and the recent hack of KYC materials from Binance shows that even documents uploaded in reputable exchanges is not so safe.

Its a must to submit your ID documents if you want to withdraw large sum of amounts from exchanges and even some ICO projects do requires KYC but i'm not sure how safe our IDs are and bad news are been spread on the internet about people's  identity been sold through darkweb,if you are not feeling comfortable about your ID just stay away from KYC projects

actually in decentralized market kyc didn't need at all.if exchanges or projects required to verify their investors they could use another methode.but required personal data from them was very risky.as we know in dark web there is no limitation in any section.it could happen if our personall data in wrong hand, they could sell it.

It seems to me that we should put up with the requirements to provide KYC, because in the near future there will be an acute question of the legalization of cryptocurrencies, and for this it will be necessary to identify each cryptocurrency user.  We have no other choice, so KYC conditions will now be met even more often.

In my opinion, kyc documents submitted to exchange are not safe. There have been countless issues of public documents sold out to third parties, who use this information for illicit activities. I learnt that personal information of people are traded on the dark Web and this informations were in most cases given out in good faith for kyc verification.

What you are saying is true, that risking too much KYC can be dangerous, because it is personal identity. But KYC requested as one proof of our seriousness and them. In this case, we do not arbitrarily submit KYC.

How safe KYC is, it depends on the project you are following. The important thing is that it is not easy to do what they ask for. We should be able to examine because not all projects that use KYC, are trustworthy.

Our personal data is more important and if used by irresponsible people, of course, we will have a loss.

We know that our documents submitted as a check to KYC exchanges will never be safe. There will always be some risk of hacking and theft of this data. Everything on the Internet, everything is at risk of being hacked. Especially attract the attention of various fraudsters of the exchange, where multimillion-dollar amounts are concentrated. Therefore, it is better to transfer small amounts through exchanges and not undergo such checks, and keep your money on the exchange if possible, not for long.

My opinion is this. Everyone is trying to do such things so that they would not prohibit the trade in American on their exchange, because they have a service that regulates cryptocurrency laws (SEC). And in America there is a lot of money that will arrange good liquidity. After all, the SEC has banned a lot for the citizens of their country.

KYC issue should not be taken lightly. You can make use of block chain, cryptocurrrency, such as trading them, investments, without getting your personal details involved. Some exchanges allow you to trade or withdraw particular minimum amount without KYC. Meanwhile, most of us do not exchange those minimum withdrawals per day.

The purpose has totally been diverted and it’s a betrayal to the Decentralised world

Most especially bounty managers that uses kyc as a restriction to corner hunters reward to them self
The principle is concise and clear; avoid kyc related projects if you have doubts

But ensure to always dyor

One of my fears is that one of these days, all those scam projects that conducted kyc will run out of the stolen funds and will end up selling people's data to big organization. I do pray that this day never comes. KYC is being abused too much

For me, it depends on the information that they are going to ask. As long as it's not going to have any information about my bank accounts or where I live exactly, I am just good with that. I use my real name on facebook and my real picture so I don't have any problems with those information.

The problem is that nobody knows how safe are they. But I am pretty sure that exchanges, especially shitty ones are making huge money on selling those docs on the black market. It just makes sense, thats why I prefer to stay on decentralised exchanges.

I have read a lot of bad reports about KYC in bounty campaign, KYC and exchange verifications but of the three I prefer to do KYC to exchanges than airdrop and bounty campaign because exchanges are more compliant than the two, and besides I cannot do a trade on most exchange if I will not undergo KYC.

Not really safe there is a big potential that they are going to sell it to the third party, but do we have an option and a choice, you cannot get your bounty stakes, if you do not undergo KYC, you cannot participate in an airdrop without KYC, and you cannot trade your coins if you did not underdo in exchange, it's one of the risks that we have to take.

There is no way to know if your KYC details will be safe in the hands of exchanges, those who owns exchanges are humans too and anything can happen, instead of taking the risk it will be better to get used to DEX exchanges or find some exchanges that doesn't require any KYC details for trading or exchanging coins and tokens

worse again when the project is over then there are kyc requirements, and for those who don't verify kyc won't get rewards, I have experienced it like that, even though we've worked hard to promote their project. but I am not disappointed, because the rewards calculation that I get a little, so it will be higher risk if we give up identity

I think companies and projects are looking to gather as much information from investors or bounty hunters. to easily control the amount of people using their money. or some other reason. But there has never been a case involving a KYC leak. It proves that your password is very secure, so don't worry about it

KyC required your National ID or passport, and those have your address and sometimes to support your Identification card they will also ask about your billing paper.
This is really something we should not entertain. But if we will talk about the bounty, what can we do? they sometimes not told it at the first that you need it.
KYC can be sell over the internet and that is dangerous.

I made it a rule not to send anyone my documents with KYC. This is due to the fact that exchanges are not responsible if my documents are stolen, and I do not understand why they need my documents, where they send them in the future and how they are used. I am sure that no documents are needed for trade.

They are responsible if they are regulated, you can sue them if they will intentionally leak your information, I can guarantee you that.


They need it because they are required by the government or the regulators to impose that requirements to their client.
If they will not follow that, the regulators will cancel their license to operate or worst also penalize them, so it's the basic requirement for them to follow also.

Kyc came as goverent regulation for projects to ensure they're operating under the government rules and not allow bandit and those under government watch not to participate in the ICOs or exchange trading. For instance if USA government says its citizens shouldn't trade token pairs on exchange if an exchange does it, they can be sanctioned for it. Kyc is necessary to ensure everyone is government  compliant.

The main problem of the crypto community is the lack of laws guaranteeing 100% security of personal data. That is why I try to avoid projects with the requirement of KYC.Now, many exchanges have begun to demand to pass KYC in hindsight, even those where I have a long-standing account.

That's the more reason crypto investors should should be careful with where to input their personal data for kyc because most of these mushroom exchanges and airdrops/bounties are just kyc farmers for the dark Web or some sinister goal

It is really difficult to say our data are safe with all these projects, if it is possible then we need to cut off such projects that require kyc, it is possible our data could be sold, also from the name KYC, it is not meant for hunters but the reverse is the case.

Kyc is not something that is permanent ! And also it’s optional for only people who whose to benefit from the achievement in the later future , it might be mandated as part of laws !