Bitcoin Forum

Why always kyc mandatory?

What are they do with our information if we submit kyc?


I am new in Crypto industry so from 3 month i try to trade on Exchanges i mean Best exchanges like (Binance, KuCoin etc)
So when i try to withdraw big amount like more then 1k - 5k Dollars they asking for kyc so now i really Don't want submit kyc in any exchange.

Please suggest me some exchange where kyc is not needed at all.

Crypto created for no tracing so why kyc?

Is they Tracing us ?

The original use of KYC is for AML(Anti Money Laundering) compliance. Most of business that involves money are being required to submit this info to regulators to regulate all the transaction. Yes, they will use it to trace you once you are doing money laundering dude.  ;D

I don't know whether crypto exchange really using KYC for compliance since most of them are not regulated. Some them are just stealing customer identity. But if you are using regulated exchange. Its really a requirements for them to get license to operate.

There are ways to skip KYC while crypto trading and KYC is not mandatory to trade big amounts it will be only necessary when you are going with withdraw such big amounts.

Here are some p2p exchange which doesn't ask you to submit KYC

1. Hodl Hodl
2. Bisq
3. Localcryptos

fortunately not all exchanges require a mandatory kyc procedure, there are still some that can be used without strict identification such as binance for example within certain limits, there is still exists a small part of the free world,alternatively, decentralized exchanges can be used

an average exchange that applies KYC only for withdrawals of more than 1 Bitcoin...
Binance does not implement KYC for small traders but if you don't like CEX, you can try DEX or P2P exchanges that are widely circulating outside.

Most reputable exchanges now require KYC, it's just the way crypto is now. We wanted bitcoin to gain mainstream adoption, well mainstream = needing us to verify who we are & not be criminals.
Exchanges do not support money laundering & their neck is on the line.

If you find places to trade without KYC then maybe they’re not trustworthy.

Alternatively some bitcoin atm’s do not require KYC to sell. Check your area - https://coinatmradar.com/

We cannot blame the exchange because they are just following order because if they don't?then closure is what follows.
There are several exchange that is now closed and the boss are In jail because of the same issue and that is the AML Anti Money laundering in which some syndicate and bad elements are using exchange to hide their Money and transfer to another person or account.
If you don't want to be ask KYC?then Hold your coins .

They are registered exchanges and they want to know their customers. I think if it's not for the government, they are ok with no KYC. But since they are a business and huge money coming into them, they have to ask KYC.

How about try withdrawing in batches with small amounts? does that work to you?

Decentralized digital asset exchanges are growing in popularity due to the long list of problems faced by cryptocurrency users when trading on centralized exchanges exchange hacks lengthy kyc processes and the closure of unregistered accounts have led cryptocurrency traders to face challenges on centralized exchanges leading more and more investors to move to decentralized options to perform their trades. For crypto trading kyc it will depend on the exchange site kyc is a scam, many exchange sites use kyc for verification not all trading requires kyc later.

Thank you for the suggestions from now on i will try to trade there 💓

No, cause there is always a amount like 1000$ so if you withdraw 100$ a day then when you reach 1000$ in total value they asking for kyc. Then it’s mandatory to do kyc.

if you want a safe trading then why not comply with KYC?and besides i believe that sooner all exchange will require KYC as each government will force them to implement this as Money laundering must be blocked and this one of the material for success.

We have no choice or else don't trade or go to those scammy exchange in which not requiring kyc but risk is fully loaded .

1 of the best ways to do Crypto Trading without using KYC is for using Shapeshift.   I like it since the fees are low and no kyc-  and its founded by Erik Voorhees.

https://classic.shapeshift.com

I don't mind withdrawing less than $1k-$5k to prevent KYC because we don't have to verify our account. But for me, as long as the exchange has a good reputation among the others, and they can protect the customer information, I will fill KYC and verify my account. The benefit of doing verification is we can withdraw a big amount of money, and sometimes, they offer some offers to their customer. But if you don't want to submit KYC in any exchange, you can search for the exchange which doesn't apply the KYC.

I think the exchange is not tracing you, as long as you don't make a mistake or use illegal money to trade because the exchange wants to protect their exchange from money laundry.

Cool.Let me check the exchange . If i see it interesting! I will use the exchange . Thank you for the suggestions. Really thank you

Well, try first the suggested exchange of shapeshift, or else there's no solution but you have to comply.

I can't think of any other suggestion if you always reach the threshold set for no kyc accounts.

Not really created "for no tracing" ... It should be possible to trace users who do really bad things on a Crypto Network without violating the privacy of innocent users. Transactions on proper blockchain are transparent and immutable. What is hidden is the identities of users who run full nodes and properly hide their identities.
But I agree that the current way of gathering customers unique personal data is not really a good way. A good approach would be to verify customers' identities once, on seperate ID platform (decentralized platform) then use that on multiple exchanges/platforms for authentication.

Your welcome and if you use my referral code it will be very helpful for me.   Send me a message when you will need it.

I can't able to send you message brother. I am Newbie here😢.
Send me the link & i need help so message me,we will talk there.

It depends on which exchange you are using, as some might ask for it while others won’t, so got to be very careful with our way and approach. However, we also need to be wise with our option, as to avoid getting scammed.

No.
A legal contract requires at least two willing party's.
Before a KYC can proceed a KNB (Know Your Business)  must be done.
It needs to be established who will see the sensitive private data and every single person who deals with the private sensitive data  needs to be approved. Also any new person who at a later stage has access needs to be approved first from the owner of the sensitive private data.
Handing over private ownership of valuble data to some random stanger (on or offline) is beyond....

KYC is not mandatory for all the time. Sometimes asked for KYC bt most of the time i saw KYC is not needed.

Everybody knows what KYC/AML supposedly is needed for but what they really do with this information nobody really knows and the exchanges etc. who require KYC don't provide detailed information about themselves to be fair. I don't want my ID and other personal information to be collected and stored by some commercial entity. I believe that crypto wasn't created for that.
I've been using Bitseven exchange(https://www.bitseven.com) to trade crypto, no KYC needed, very simple and reliable platform.

Exchanges will require KYC if the amount you withdraw is quite large. Phemex doesn't require KYC, below 2BTC have many options for you: binance, bitmax, kucoin, etc ...