Bitcoin Forum

Why do some go above and beyond what is even actually required?

Also, which ones ask for the least amount of KYC?

This is for the verification process in order to know if you are a human or not.
Some just ask only for basic personal info while the others ask you to submit ID's which is traders and investors won't like to do it. It won't be a hard thing to do but I don't think it is necessary to submit KYC if we wanted to keep anonymous. That is why many will skip those exchangers asking like that and find those who never ask.

I think it's normal, KYC identity is very necessary, not only in crypto, if you create a bank account you will definitely do that. They have the right to ask for it, if you don't want that then just leave. As exchanges there are several KYC stages to increase your withdrawal amount, they will ask for more data for it. I think it's a regulatory effect, they still want to be safe from all the trouble. So if one day it happens they can trace through the KYC data that you have sent.

It depends on the exchange's policy, your jurisdiction and how the exchange is trying to abide by the regulations and financial policies. We do have exchanges that follow regulations provided to the by Governments and financial bodies to the dot like Coinbase, Kraken etc, and then we have other that are a little relaxed when it comes to following regulations as of today like Kucoin, Binance.

It's your duty to always check the terms and conditions before using an exchange.

Also, Binance or Kucoin doesn't require KYC if you will keep at their daily withdrawal limit of 2 bitcoin. I believe Kucoin has higher limits. So if you think you will not go overboard, better not to submit your KYC docs. Considering that they are already allowing the 2 btc per day without KYC. That's a lot of money already. If I were the OP, I will only submit KYC docs in a reputable exchange like this Binance/Kucoin or let's add Coinbase. That is, if you are transacting with large amount of money.

Your information is partially correct. On Binance, you will have to fully verify to use Binance P2P. See info in [1] and [2]


[1] https://academy.binance.com/en/articles/binance-beginner-s-guide
[2] https://www.binance.com/en/terms

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Kucoin
The limit of daily withdrawal for non-KYC account is 5 BTC [3]. I am not sure Kucoin have updated it yet and reduced the daily limit.
[2] https://support.kucoin.plus/hc/en-us/articles/360015102254-About-KYC-Verification

1. Depends on jurisdiction
2. Depends how far the company would go to "play it safe" regulations-wise
3. Some platforms provide more service than others

Bonus point: depends on how 'evil' and sort of disrespectful a company is in terms of privacy

I do find it odd that they are asking for more, I mean Facebook and Amazon are global companies but they don't ask that much for a KYC, I am sure that they are the 4th one that @mk4 is pertaining too.

Yes, but one is a social media platform, one is an online shopping platform, while cryptocurrency exchanges are finance platforms that involve money; anti-money laundering and all that jazz. Laws and regulations wise, it's just to be expected(unfortunately) that cryptocurrency exchanges and finance and investing platforms in general to be a lot more strict with KYC.

Can you name what exchanges are those? As far as I know, the only and normal way of requirements that we should submit on KYC is an ID that they want and a live selfie where you follow what the app asks like looking up or down. If it goes beyond that I would hesitate to complete the KYC on that exchange. There is this exchange where its KYC verification is very hassle. Except for the ID and selfie, they also want a picture of you holding the ID you submitted and a piece of paper that shows the name of their exchange and the current date. I did not complete it even if I have some bitcoin stuck there which amounts to $1000 now. Based on the experience of some users that attempted to complete it, submitting those doesn't guarantee you to be verified. They would ask for more documents which seem very suspicious.

sometimes KYC can have both negative and positive sides. There are many issues that arise if KYC only aims to obtain identity data from members and they can trade and sell them. but on the other hand KYC is useful to find out who the real members are and not the members of the crime. so KYC has negative and positive sides, it's just how we perceive it

 Have you tried Binance? You can still use it without doing some KYC and also I used tokenomy without hassle. While others just need some of your required ID for verification, others wanted more documents to verify your identity.
 
 Most of them actually just relying with the government's protocol but when one exchange wanted more documents, I refuse to rely and look for other exchange. If they wanted to protect their system, I also wanted to protect my identity.

what he could mean is that some exchanges are not just asking KYC documents like government IDs such as passport or driver's license but some exchanges are asking viceo calls. Binance will ask you to do this whenever you want to recover your account due to losing your phone. a local exchange also in my country asked for a videocall too. i don't know what other exchanges are also asking but it's true too much if they do this.

OP, some regions around the world are more strict because if the financial crimes by scammers happening in those areas. OR, it could be simply be because of different laws and regulations for each region, forcing you to comply.

Perhaps, the exchange wants to know more information about their customer, so they asking more documents from the members to continue the KYC process. That will depend on where the exchange comes from, and I am sure the exchange will not want to break the rule from their country, and the exchange will follow everything to make sure that they can run their business with safe.

Perhaps, you think it is not fair if you see one exchange doesn't need you to send more documents than the other exchange. Actually, you have your choice to register on the exchange, and if you don't like one exchange, you can skip that exchange and search for the other exchanges. It's easy like that.

Probably because many are abusing their service that is why they need more information.

Go for DEX if I can recall someone's advice if you want with no KYC, OP.

It depends on the regulations of the government where the exchange is located, LBC has some of the strong KYC procedure for their highest tier traders which includes bank accounts, some payment bills in the name and address of you and video call verification while Binance has least KYC which just needs your ID.

Here is one useful topic which may fulfill your needs: List of P2P/no-KYC exchanges (https://bitcointalk.org/index.php?topic=5180421.0) by @Wind_FURY.

I have been using kucoin without submitting them any of my documents. Even yobit is not maintaining their reputation among this community, I have faced no problems with them for last 4 to 5 years and I am still able to withdraw my funds without any KYC clearances.

I heard binance may ask for your documents at any time. Bittrex has limited my account for strict KYC. STEX is another place where I traded without any KYC but not trading there in recent times.

KYC means asking your info, however, some of them requires deeper information about yourself, which is your choice whether you're going to give it or not. There's a lot of exchanges so I think you don't have to stick to that exchange that requires much more info you are willing to give. This is just my opinion, I was on Hitbtc way back 2017-2018 but suddenly they change the rules, they are now requiring every users to do the KYC thing which requires proof of address, proof of billing address, valid IDs. They don't even have like what Binance has, like even if you don't do the KYC, you could still use their exchange and has 2 BTC withdrawal limit every single day which is awesome.


Disclaimer: I do not promote the sites that I've mentioned

They'll ask for more supporting documents if they are not confident on your first submission and they are doing this for the protection of the public and they are required to do so.

If you think those exchanges that is keep on asking for other documents is violating your privacy, better not to fill up the KYC since the moment you submit your details, you already agree on their terms and conditions so think twice if you're going to agree on KYC terms.

It is mostly related to the difference in jurisdiction where the crypto exchange company is operating in as its domicile as certain countries may or may not be covered by international laws governing AML that is why KYC requirements vary as well. The same thing can be said about KYC verification levels where the higher the level/daily transactions you can the more personal details you need to give as there are certain thresholds that they need to follow for AML compliance. Other than that they might just vary as there is a different interpretation of the law for each crypto exchange.

Almost all crypto exchange only requires kyc if you are going to withdraw and deposit more than the amount which they intended for no kyc. If you just trade small amount then, you don't need to take kyc for your own reason of being anonymous. Also, kyc is just required because of Anti money laundering law.

It depends on the exchange, but what kind of information are they requesting for that you don’t really like , is it the submitting of ID? Every exchange I know does that, except the decentralized exchanges.

When you register on some of the centralized exchanges at first, they wouldn’t ask for anything but they will try limit most of the things you can do on the exchange, that way you will be forced to do KYC, and the KYC has different stages , the first one they will require you to give your name, address’s, phone number and other basic details. Then the next stage of the KYC is to submit your ID to verify yourself. Then there are those that will even ask for you to take a selfie holding your ID card lol.

The KYC system is now widely implemented in centralized exchanges because they want to need important information when there is a problem, I think now it has become commonplace I almost every exchange always takes KYC steps to secure my account going forward.

KYC has become a rule for those who apply it is to avoid money laundering because this has happened a lot before and with KYC we are more flexible with bigger withdrawals.

I made an account on webull and they didn't even ask for a selfie. Where as coinbase wanted a full video of me holding an ID. Screw that. They're going above and beyond the legal requirement. Any company that does that doesn't have your best interest at heart.

Most centralized exchanges introduce KYC in order to avoid problems with regulatory authorities that may arise in the future. For others, such verification is mandatory due to the legislation of the country in which they are located. In any case, everyone has the opportunity not to pass verification by choosing an exchange where there is no mandatory KYC.

I also find it hard to understand why for some exchanges it is enough to send front and back pictures of a document, while others ask to hold this document and a paper with date, not speaking about asking for a utility bill, when everything can be photoshopped or pack of documents can be bought on the dark market. That utility bill annoys me a lot. Why do exchanges even need that? What about situation when I rent a place or I'm not the person who pays the bills.

I see people talking about video confirmation - that is totally absurd and I simply would be lazy to do that.

KYC is evil and completely unnecessary. 

It has no place in cryptocurrency and does nothing to protect the customer.  It allows exchanges to selectively scam as they decide if a customer "passes"  This is what Bittrex did to 1000s of customers.  This is why KYC is often said to stand for "Keep Your Coins" 

Then there is the risk the exchange will be hacked and your identity stolen along with any funds kept there, allowing hackers to sell and use your identity in other online financial crimes.


If the exchange wants KYC find an alternative that does not:

nonsense KYC does not prevent money laundering.  Banks are the biggest money launderers and they have KYC on everyone that uses them.

Honestly the real answer is that KYC is something governments ask from exchanges and it is not something exchanges want themselves which means it all depends on what they were asked to get, that's it. However reality is that, you do not have to use KYC for most places if you can stay under certain limits and I try to abide that as much as I can.

For example, there are exchanges where if you trade under 2 bitcoin that would mean that you do not have to give your KYC and 2 btc is not an amount I ever had, so that means I fly under the radar and that's fine by me, so I do not share my KYC with them. I never really understood how people imagine they could stop money laundering on crypto by simply putting KYC there where in the real world HUUUUUUUUGE banks like HSBC and Deutsche bank end up laundering money for criminals in billions of dollars worth.

Facebook and Amazon aren't financial services--crypto exchanges are, and that's why most of them are starting to ratchet up their KYC requirements as they become more regulated.  As to why some have less KYC requirements, well, crypto exchanges are spread out all over the globe and thus have varying amounts of regulation--and some exchanges like Yobit are probably operating without complying with regulations (and I'm betting exchanges like that aren't going to last long).

KYC is only going to get stricter, not less strict.  I hate that this is the case, but it is.  I'm just surprised that it's taken this long for the wild west days to disappear. 

I don't think it's evil, but it definitely goes against the spirit of cryptocurrency.  However, governments don't give a shit about the spirit of crypto and they're the ones that have the power, so if you're completely anti-KYC, I'd say stick to the exchanges that currently don't require it for as long as they're around.

Binance.com

They don't ask out any KYC and can still remained unverified and having that 2/BTC per day limit which I do say that it is already enough for most people in the market.

I've been using up this platform for a while now and I don't have any complaints nor problems towards it when it comes to some sort of varication.
This is why it is much better to stick out with known exchange rather than considering others whom do even ask stricter KYC verifications
unless if you do deal with bank transfers then that's the time they would really be asking it.

Why almost all of them ask for the same thing. Documents, selfie with document. This is basic. In addition, many ask for proof of address. This is a standard set.
However, there are exchanges that request video verification, this is less common, but it does occur. They ask you to shoot a video for 10 seconds with the implementation of certain actions.

It definitely doesn't totally prevent it, but submitting personal identification documents will surely make finding potential launderers possible, and we could say that it would disincentivize launderers to do laundering on these platforms due to the risks.

But yea, I definitely think AML/KYC is a really really bad solution.