Bitcoin Forum

What are the repercussions of failing to complete KYC on an exchange?

If you have yet deposited any cryptocurrency to your account on that exchange, nothing is serious because you won't lose any cryptocurrency there.

If you already deposited cryptocurrency into your account, you will lose your cryptocurrency if they reject or you fail to complete KYC with more attempts later.

One more risk, after you submit your documents for KYC, you lose those documents to that exchange or any third-party entity that is responsible for KYC verification.

• Why KYC is extremely dangerous – and useless (https://bitcointalk.org/index.php?topic=5221497.0)

You will not be able to withdraw the balance there or any other features. There are some exchanges that before depositing the balance must complete KYC verification but some are not but at the end when withdrawing KYC it is very mandatory to verify.

I think there are still No-KYC exchanges and from some exchanges you can use. No-KYC Exchange Encyclopedia (https://bitcointalk.org/index.php?topic=5461920.0)

What I will let you know is that you should not think that because of KYC that you can not be scammed. You can be scammed.

KYC do not let you have privacy. That is the main disadvantage.

It is good to point to the fact that people should not leave coins on exchanges because any exchange can be hacked and because the person do not have complete control over his coins.

To the point

• Reminder: do not keep your money in online accounts (https://bitcointalk.org/index.php?topic=5421039.0)

But as I shared my thinking, you lose more than on just your cryptocurrency when you KYC and that exchange turns to scam. Scam exchanges double scam you by: stealing your cryptocurrency; stealing your KYC document.

It depends on what kind of exchange you use and why the asked you for KYC

1. Some exchanges ask for users to undergo KYC verification so that they can hold onto their funds. Should you pass the KYC, they may ask for other new requirements from you. Should you fail the KYC, they will lock your account and keep the funds. This behaviour is common with scam exchanges like HitBTC

2. Other exchanges just let you withdraw the money out of your account should you fail their KYC verification. They then lock your account, and you won't be able to use any of their products. This happens at times in exchanges like Binance.

3. Certain circumstances such as suspicious transactions or as requested by law enforcement that your account is frozen and investigated. They may ask for KYC but won't release your funds until you pass KYC verification.

I think you'd have more idea if you'll read that exchange's specific terms and conditions in regards to a fail KYC. As far as I know they may have similarities but I guess it will differ and vary per your residency I guess something like that.

Some exchange will restrict you from trading though you can still withdraw the money.
Just like in Binance, they recently asked for another KYC to update their data and if you will not comply you can trade anymore not until you submit the requested details.
KYC seems to be more big deal now, as many platforms strictly implements this for the protection of the platform and of course the user as well.

If you fail to do KYC on the exchange, usually they will ask you to complete the missing parts or fail. some exchanges define several stages of KYC, and if you fail at one you can repeat it. and usually the exchange provides a description of the reason for the failure. such as a document photo that is not clear, you can repeat it.

the impact is clear when it comes to withdrawals. If you have already made a deposit, of course you have to complete KYC to be able to make a withdrawal.

It matters because KYC is the only documents required to regulate users by the law. Without it, An exchange can’t get their license to operate on most countries or they might breaking the law since most country is now regulating crypto exchange unlike before that government doesn’t cares about crypto trading.

Repercussion is you might not recover your funds without undergoing KYC. Read the terms of exchange always.

From my own personal experience so far, I do not see any repercussions aside the fact that you don't get to enjoy the freedom that comes with being able to withdraw significant amount of money on daily basis.

There are some exchanges that allow withdrawal up to $1000 per day maximum for non verified users, while verified  users can withdraw up to $50,000 to $100,000 dollars or even more..

If you are a money bag trading on the high side, then it's advisable to verify your account to enjoy high limit.

And let me not forget to mention that there are even some exchanges where they won't allow you to make a deposit without verifications, and some also allow you to deposit,  but won't allow you to withdraw without verifications..

Most exchanges won't also allow you to trade in the futures/margin market without kyc verification, and if you are a p2p trader, some big exchanges won't also allow you to trade p2p  with other users without passing kyc verification.

Cannot make transactions because to be able to transact at Exchange must complete KYC correctly.
No need to panic if you fail to finish KYC in the exchange that you want to use because there is still an exchange that does not need KYC for their users.

KYC is useful as a principle to get to know users because it involves personal identity as its definition. For individuals who do not want personal identity to be scattered with fear of abuse, then KYC is very important not to be given.
Enthusiastic KYC, for me it is very important not to be shared carelessly.

Consider.

You have asked general question and did not mentioned any specific exchange so there are three type of exchanges as far as i know. The first one that requires kyc for any function you want to use like Deposit/trade/withdraw. If you fail to complete KYC then you can just overview exchange and you cannot do any operation like Binance/probit and many other exchanges

some exchange will let you use the exchange without KYC and you can deposit/trade and withdraw but there will be some limitations like daily withdrawal limits, fee and also you will not be able to use P2P and participating in new token sales/staking. Bitget, bybit and some other non kyc exchange have these feature. These exchanges can anytime ask for KYC if technical team found any fraud or abnormal funding.

Third type of exchange where you can deposit without kyc and also trade but for withdraw your fund you have to pass kyc otherwise you will loss your funds like bitmart exchange.

Your access to some services will be restricted, or your account may be restricted and deleted after several weeks to months according to what is stated in the terms of service, but in most cases there are certain restrictions on deposits and withdrawals and restrictions on conducting trading, and sometimes you cannot do anything without KYC.

All central exchanges are KYC by default, but the nature of the restrictions varies. Some allow you to do everything within 10 Bitcoin per day, and some restrict your access to everything.

If you will not complete the KYC then you can not use the full features of those exchanges. For example, most of the exchanges ask for KYC if you need to use P2P trading. But few ask for it. The point is that if you do not provide KYC, you will not be tagged as a spammer or something like that because you can still use the platform or exchange with no restrictions.

By restriction, I mean that you can wander here and there but might not use the features. Besides these, there are no legal investigations that will take place against you if you do not do KYC. It is optional, but as you have asked this question, Many will suggest you not perform KYC, and I will also suggest the same.

Because by doing KYC you are handing over all of your documents to these exchanges and who knows what they will do with these details and another thing is you will lose the anonymity factor. So, the following thread by Ratimov is the best thread for you to read out to understand the importance of KYC, and after reading that thread, you will learn whether KYC is important or not.
https://bitcointalk.org/index.php?topic=5456199.msg62398807#msg62398807

Not that much because you'll have to go through the process again. Unless you've got an unjustifiable amount on them and you're asked to comply, you'll have hard time if you fail so.
Because if you have provided them already with your kyc and then you are not truthful to it, that's going to make them more doubtful to your identity and could lead to the freezing of your funds until you're all clear to them.

The repercussion of failing to complete KYC on the exchange is that you must repeat it until successful. You can ask for help from the support service to help you until the process is successful.

If you delay completing KYC, you cannot use all the features on the exchange because it requires KYC verification. Usually, you are only allowed to deposit assets without being able to be traded. And you should not do that because you have not done KYC.

Regarding your question of whether KYC is important or not, I think it depends on you. If you want to trade on an exchange, you must comply with its regulations. But you can also use decentralized exchanges where you don't need to do KYC. But you need to find the decentralized exchange you want.

In some exchanges KYC matter while in some it does not matter. like in centralized exchange i.e. Binance, Coinbase etc. you have to provide KYC and after getting approval you could use all the features and you can see the amount of deposit, withdrawals will be increased too. Many exchanges provide the option of P2P with KYC and if you would provide KYC then you will be able to use all those features plus there might be more features based on the platform one is using.

Short answer to your short query is, if you do not provide KYC then you have to face no repercussions instead you might not be able to use the features about which I just talked about.

If you are new to crypto sphere then it is best for you to avoid providing KYC because there many other options available to sell, buy etc. the BTC. I am saying it because once you linked your personal life with your crypto life the. It will become difficult for you to unsee it all. I hope my answer might of some help to you. 4

You not ability for withdrawing fund in your exchange account if not success verifying or KYC, its huge repercussions when your exchange account are failing for completing KYC. But all exchange give many chance for reuploading document and verifying again until success and all document uploaded success to make account full verifying. Be careful with exchange required with KYC for depositing fund, when failing to complete KYC not ability for withdrawing back your fund have been deposited.

You can check on other board about exchange are required with KYC or not to protect with fund keep safety although your account are failing to complete KYC.

You will have to repeat yourself and provide the documents you need in full and with clear images that are not blurry.

As Kucoin recently sent an email to users who have not yet done so there is an important note below if you experience problems related to KYC verification you can contact support or representatives of the official channel, this will also be helped by them.

What others are stating, Exchanges that apply KYC and you do not do it all features cannot be used.
KYC is now a required procedure due to their regulations if you oppose you cannot use it fully.

The best solution is to choose an exchange that has not fully implemented KYC.

The repercussions are many and not limited to one but the major repercussion that account holders have complained of is that you won't be able to withdraw from that website. Example if it is a casino and you win, if they request KYC you have to do that before you are allowed to withdraw what you have. Some have level 1 verification and you can be limited to perform some other functions but certain winnings require full verification process that you have to upload your documents and picture selfie showing your face.

OP here in this crypto space we used to say Your identity is the most important thing, and don't sell it for a few services because the more reliable services are available here at this pace without KYC. taking the most common example of Trading, rather than depositing your funds on a non-custodial wallet for just trading service by the particular platform with a small research about it you can reach out to the Self Custodial System based trading service.

Opting for Know Your Customer (KYC) verification on any platform is a prudent step, but it's equally vital to ensure the platform's authenticity and carefully scrutinize their terms and conditions. Unfortunately, these terms often lean away from the customer's favor, increasing the risk of document and identity theft by unscrupulous platforms.

The repercussion is dependent on the kind of exchange you have opted to use. Some exchange require KYC verification, while there are some that don't require it at all.
It is advised to use an exchange that requires KYC verification inorder to be safer from hackers, scammers and spy bots that can take advantage of loop holes in the normal password account access lock security and gain control to your funds.
For those who require KYC verification like Binance, Bitget, you can only gain access to its trading features and complete successful transactions upon completion and verification of your KYC.

If you do fail on completely up the KYC on certain exchange then they wont really be forcing you out on doing so but you would definitely be that restricted or really be having that limited kind of features on which you could really be able to make use on which it would really be that giving out no other option or choice but to comply on whats been asked specially if you are really that doing some P2P or making out conversions of your coins into fiat which would really be that so normal that you would really be needing to be verified first. Here's my current situation on using up Binance for some couple of years now, my current or the ID that had been used on verifying my account on Binance is already that expiring on which means that they do sent out some notification that i should really be that needing to resubmit an ID which would really be that up to date and since Binance
exchange is really that totally relevant and useful with my crypto journey and transactions then it would really be leaving no choice on your part on which you wont really be minding about complying on whats been asked
for the benefit that you are really that aiming to get on.

KYC on exchanges is not an universally thing, there are exchanges (centralized exchanges) that you can still carry out your trades without undergoing kYC verification but for some you won’t be able to do anything at all.

For most exchanges that are not that restrictive you can still buy coins with your account, and also with draw to your non-custodial wallet but the only issue is that you may have limit to the amount that you can’t withdraw on a daily basis while some you won’t be able to use P2P (for example Binance).

So depending on the exchange you would prefer to use that’s what will determine if you’ll be limited or not.

I do think that KYC verification is quite an integral part to gain the full experience of using the decentralized network. It is beneficial in many ways than one and one thing that stands out is that it is like a trust system. To some point, the reason cryptocurrency has been successful since its launch, is because individual customers have trusted the KYC system for most top exchange to keep their coins safe from hackers and to pair them with unseen persons that would deliver a transaction on time and safely, without financial agencies standing as third party observers for any transactions.

You won't be having access to use their services
Restriction will be placed on you from performing some certain functions.
Your funds with them will be hooked and you can't make withdrawals
You will be frustrated to leave but can't leave because of your asset
Your account will be frozen and place under restrictions till you're able to perform kyc.

But if you think it's nit worth it all, then try to withdraw your money from them and look for a no kyc exchage, or corperate with their kyc request,

You can't be anonymous if you do KYC, in my opinion. So, if a person engaged in fraudulent activities and scams, they can be identified. In other words, it is designed to prevent fraudulent activity. If there is no KYC in ana exchange, I believe that many bot accounts will be created, which is not healthy for the site. Even if we understand the basic goal of the KYC, we are nonetheless at risk because our identity has been exposed to them. In certain occasions, government officials have accused a person of something he did not do, so be careful.

Nobody likes to submit KYC documents knowing how evil it is but then most people would prefer to face the risk than use a decentralized exchange.

The repercussions of failing to complete KYC is just like being locked out of your apartment by the apartment owner for failing provide proof that you have paid some taxes or whatever.  In cryptocurrency terms, you can't withdraw your crypto even if want to. This is why it is the first thing you are required to do after signing up on a centralized exchange.

Different exchanges have different rules, but the best thing is just to avoid exchanges that request KYC. Because some exchanges do require KYC before you can perform any activity on the exchange, you won’t be able to make a withdrawal if you don’t complete your KYC. Some exchanges will allow withdrawals, but when you are about to withdraw a specific amount of money, they will ask you to complete your KYC first before your withdrawal will be successful. So just as I said earlier, it’s better to avoid exchanges with KYC if you can because there are lots of risks associated with submitting your KYC to exchange. The exchange can be hacked, and the hackers will steal your identity and use it for illegal activities. Maybe the exchange staff will decide to leak their customers information to scammers, and it can be used for illegal activities. That’s why it’s just better to avoid submitting your identity anyhow.

If you primarily use their service, you have no choice but to comply with it.

As part of the regulation, these exchanges have no choice but to follow. Before when centralization wasn't an issue on all crypto exchanges, everyone could transact freely there even without KYC but that's now changed. Don't worry about undergoing KYC on exchange if you really take advantage of their service and it's beneficial to you.

But if you really stand on the no-KYC policy and do have doubts about your privacy, you have no choice but to find a platform that suits your needs.

It's simply that you cannot explore all the features on the exchange if KYC has not yet been passed, and there are some exchanges that don't allow you to withdraw unless you have successfully passed KYC. For some exchanges, like p2pb2p, you will need to pass KYC first before you can deposit, but if it's an exchange that allows you to deposit before KYC, you need to be very careful because the repercussions will be that you cannot withdraw your coin again unless you fulfill the KYC requirement. If you are avoiding KYC exchanges, then visit this thread (https://bitcointalk.org/index.php?topic=5461920.0).

if you do not complete kyc on exchange but that exchange ask kyc then you will fail to use that exchange. for example if you want to use Binance Exchange then you must have to done KYC. Here is what you can't do without kyc

1. Cannot deposit
2. Cannot Withdraw
3. Cannot use P2P Service
4. Cannot transfer fund by pay id (Binance to Binance)
5. Cannot continue spot trade
6. Cannot continue future trade
Etc....
But many exchangers still allow everything without kyc you can use those exchangers without kyc like Gate.io, MEXC, Bitmart, etc...

I don't think there should be any problem if you fail it one time. You will be asked to re-submit the documents. If you have deposited in that exchange, be sure to withdraw before re-submitting. Because they don't restrict your withdrawal right away after 1-time fail. You should try again after withdrawing.

Now let's talk about multiple failed attempts. Your account will be restricted. You won't be able to withdraw or deposit anymore. Your device and IP could be blocked in order to prevent further account creation. In this case, if your documents are correct and you haven't done anything wrong with them, then you can ask the support and talk with them. You may have to provide live proof and other documents in order to get verified. But if you don't have any assets in that exchange, then forget about it and move on to something different. Some other platform perhaps. It's not worth the hassle IMO.

You need to becareful keeping any funds on any exchange that you do not plan on KYC in the future.

Generally the good exchanges will warn you ahead of time, its time to KYC and even after the deadline they will always let you withdraw.

However there were certain exchanges in the past like Poloniex, Bittrex which basically gave no warning what so ever. And your funds were stuck. Many KYC'd but there was errors and their funds were stuck for months.

So if you want to avoid this headache, just don't use the exchange at all.

KYC is important because for exchanges that require KYC for every user, the process of completing KYC successfully is one of the requirements. There is a problem with the resolution process, you can only log in and you will be limited in carrying out activities on the exchange, such as not being able to make deposits and withdrawals.
There are exchanges that do not require KYC to be able to make deposits and withdrawals.

By providing KYC when registering on an exchange that requires it, you are ready to hand over all your personal data to them.

It depends on your status at that time, for example you're just starting out with the exchange. One obvious risk is that every identity you send has been leaked whether you want to repeat it or not.
The consequences aren't yet clear, but I'm sure that at some point they'll be able to use your identity for other benefits, not just in the form of crime.

They will just simply close your account or restrict you from using the exchange. If the exchange is legit and if you have funds there, then they might also ask you to withdraw it in a limited time frame and will tell you to leave the site politely. Many exchanges simply lock your funds also. So if you can’t provide your original documents for KYC, then don’t register in a centralised exchange, go for decentralised exchange and P2P transactions.

You do not get to trade, that's it. There are many places that you could trade and if you are right about it then you make a profit and I think it is quite important to realize that you are going to have a hard time that will not be that simple for the time being.

I believe that the best thing to do in this case would be just making sure that you fill out every detail they ask or you do not use that website. I am not saying you are forced to give your KYC, the other option is simply just not using the website that asks you stuff that you do not want to give, if you are uncomfortable with it, then you could very well easily just end up with not doing it all together and just getting out of that website and find somewhere else.

KYC which is know your customer, it's a process projects, exchanges makes their prospective users undergo to prove their identity, to know if they are real, for security or for any future events purposes, although this process has its justification it is an infringement to ones privacy many crypto-currency enthusiast who value the anonymous nature of Crypto Space don't agree with this process atleast in some situation.

In terms of exchange it is centralized exchanges that demands this process, many can be strict about it and you have no access to the exchange unless you complete it while others has levels and stages to their verification and to enjoy full service from the exchange you have to complete it, so your question depends on the exchange.

One suggestion for trader who avoid for submitting document ID on exchange account or more private their data better trade all assets in dapp exchange and don't try with CEX Exchange are commonly required with KYC. Actually with verifying CEX exchange and uploaded document ID make us easily for trading and don't have to pay higher fees transaction based on trading in dapp exchange with instant order than CEX have feature with limit buy or sell order. Current CEX exchange available without KYC is Kucoin but last week I received an email notification have to upload or pass KYC if want trader or deposit fund in that CEX exchange.

KYC make us easily with selling fiat to be cash without have to use third party as local exchange for converting to withdraw bank account, right now many top CEX exchange have feature with P2P and directly we can sell our USDT coins without have to convert with local currency pair and withdrawing to bank account.

If you are in an exchange that requires KYC but you fail to do it, all your deposited money can no longer be withdrawn. That was the worst-case scenario which is why is a must to read their rules before using that particular platform. If you care too much about your personal info, you also must be careful when choosing a platform. In some cases, some exchanges never ask for KYC at first but later on, they will require you to do that.

I will tell you OP that you have to be prepared for that situation because most exchanges are not implementing such rules. Not really a big deal if you are using reputable exchanges but still, you will be careful with the person/site that you are dealing with.

Unfortunately you only get to feel/know the repercussions of failing KYC on a CEX if you hold funds on the exchange & try to withdraw,  and the stupid thing about KYC is these guys will never bother you when depositing funds on their platform not until its time to take money out ::) and funny thing is that very few of us choose to go for KYC before the deposit which needs to change !!

But usually failing KYC means losing the liberty to use your funds as you would if it were in your personal wallet , which is why many pro users would advice on using a DEX or exchange that is not KYC compliant or flexible on this issue...otherwise only way out is to pass it and get your funds out asap!

If the customer has not deposited any money in the CEX, I think there is no repercussions at all. But if funds is deposited already, that is where you have fell into their trap completely. This also happens in the casinos and that is how the funds of many gamblers go. They will not find it important to complete KYC on registering the account, they will first deposit and start gambling. As you have noted, no one will prevent you from depositing because of inability to complete kyc. They will allow you deposit, but withdrawal will be the problem.

Some exchanges are even dubious such that they will increase the difficulty of the KYC when they notice you have already deposited. This is an attempt to confiscate your fund. So, it is advisable to complete KYC before using an exchange.

Having that type of question usually means that you should not be trading to begin with. I mean for someone to have a real solid reason to not give their KYC, "I just do not want to share my information with someone else" doesn't make sense when over millions of people do it. I get that maybe if I asked you to give me your ID then you may reject, that makes sense, but Binance has (globally) millions of users, I am not going to be standing here and tell yo utaht if millions do it, then its a good thing, but I can show the history that millions have done it and nothing happened, which is a proof, if millions did it and there was a problem then yeah you shouldn't, but its obvious that this isn't an issue.

Each person is unique and has own unique need for privacy so if a person cares about privacy and want to protect it, he can refuse to use KYC centralized exchanges and find no KYC centralized exchanges or decentralized exchanges to use. It's personal need and personal research then ending with personal choice. You can not tell him that he must use a KYC centralized exchange because there are thousands or millions of other people use that exchange.

Current list of exchanges without KYC (https://bitcointalk.org/index.php?topic=5414539.0)

As far as I remember, Binance also didn't require KYC to be able to trade. even certain withdrawal limits can also be done simply by setting several security procedures before withdrawal. After some time there were changed regulations from Binance which required all its users to carry out KYC.
because my account has been KYC verified, I don't know for new accounts whether I can trade before doing KYC or not. But what is clear is that new accounts that don't have KYC may have restrictions in operating some of the features on the exchange. such as the P2P feature and withdrawals which require KYC verification.

You won't be impacted if the assets you trade are merely a small portion of your total holdings. Because there are two different types of exchanges, centralized and decentralized, there may be a bracket where you can exchange cryptocurrency even if you don't provide KYC. For this reason, there is a limit. When you reach the amount limitation on the withdrawal of the exchange, they will provide you with the requirements for providing KYC. If you have assets but haven't provided KYC yet, they won't allow you to withdraw because you have reached their withdrawal amount limit. However, DEX does not have this requirement.

Once you're able to comply to the terms and requirements for their KYC on request you will have no problem using them, if you're not providing the required documents then you may loose access to your account with them and making withdrawal can be as though situation to you even though it appears to be the simplest thing to do, i don't think there's anything that will make a user to purposely desire not to provide his information on KYC except he has no money with them and done using their exchange.

As a rule, if the exchange decides to introduce full verification, it always allocates enough time for those who do not want to go through KYC so that you can withdraw your coins from the exchange without hindrance. If KYC is mandatory, then you will not be able to trade on such an exchange.

It depends on the platform because others you can still continue using their site but there are constant pop-ups to do KYC while you are using their platform and most of the time you can't withdraw your funds if you need to. There are also times that there are set limits like when you can only transact within the limit and over it you'll need to do KYC and lastly you are forced to do it after signing up because that is their regulation.

Right now most of the platforms require KYC so it is better to do it before doing some transactions on their platform so that we can prevent issues because this is mostly where the issues start.

Cex without KYC is high risky because anytime when exchange feel any suspicious action , cex will ask for KYC to withdraw your fund. Most of the time these issue happens when you deposit large fund then cex will ask different proof such as documents, source of getting fund and many more. I don't know OP just want general information or he has intention of trading in  kyc exchange without kyc. I think for low fund risk is also low and if fund is large than using cex is stupid option.

I used Cointiger exchange and at the same device my brother also open an account. Technical team banned boths our account and seized fund even my brother passed kyc fund not released so we should also keeps this in mind before going to Cex.

You won't be able to continue the service, but a fair exchange should allow you to withdraw your funds. They cannot confiscate your balance as they don't own it. However, there might be exchanges that would do so. It's better to be safe than sorry; just comply if you can. If not, consider trading on a Decentralized Exchange.

KYC-lives matter.

If you fail to complete your KYC process, the exchange will seize your funds, lock your account and you will never be able to withdraw your coins. The big question is, how much you got on the exchange and can you afford to lose that money? Is your account balance worth of sharing your personal details with an entity you don't know anything about? The answer changes for every person. Some people will share their personal details for 50 bucks. Some other will not share it even if it will cost them thousands of dollars.

KYC doesn't make selling of our coins easier, you can use instant exchange that don't need KYC to sell your cryptocurency to other cryptocurency or your peer to peer exchange to sell your Bitcoin to others without using centralized exchange. KYC only matters to centralized exchange because they have be instructed to make all their customers to verify their identify and this is because the government are trying to reduced the rate of crime been committed on those exchanges.

If you're using those centralized exchange, that's when you'll be required to complete the KYC process to get access to all the features of the exchange and also to withdraw from the exchange. If you don't want to give out your KYC information then don't use cex exchanges.

I beg to differ, crypto exchanges are not like gambling casinos where fund are completely seized and account locked  as a result of not completing kyc.

Crypto exchanges operates differently, atleast, I've been using cryptocurrency exchanges and still using them, several of them I've not kyced on, and non have ever locked my account or restricted me from withdrawing , the only thing they do is place a limit on the amount of money you can withdraw per day(24 hours ), most exchanges allow non kyced users to withdraw from $1 to $1000  every 24 hours, if the user has a lot of money and wants to withdraw more at once, then the user will have to pass kyc verifications, else, the user will have to resort to withdrawing the limit he or she is allowed to withdraw per day .

If they do not ask for KYC when depositing, then they are scammers. All services that request KYC do not deal with the user financially without knowing or confirming his data, and cannot deposit without that.

what happens is exchanges do not ask for KYC because there is not a global regulation and when the became big they change terms of use change, so all Whoever deposits using old addresses that he used will fall into this problem, and sometimes even after this happens, good platforms provide the option to withdraw without being able to perform any other action like trading. I repeat, if they do not ask for identity verification when depositing, they are scammers.

I just don't get it. Why would anyone forge on to deposit money into a kyc required exchange or a casino with him summiting his documents and made sure to have the account completely verified before putting money. Like why the f*ck the haste to deposit? That's beyond carelessness it stupid cause you're just gambling your money.

Some of these exchanges particularly online KYC casinos they are dubious and diffident in their operations that by any slight mistake you make in deviance to company's policy they jump on the opportunity to seize your asset. 

So to be on safe side  it's either you patiently wait to complete KYC, or you make use of a no KYC exchanges or casinos. People shouldn't shovel yourself into a shit that's ain't worth it.

I think you are not familiar with this kind of activity. There are some events when many exchanges give you an opportunity to earn by simply doing some tasks. You get the amount deposited in your account but in order to withdraw it, you need to deposit first. Or in case of some that require a minimum limit which you were unable to earn from tasks. Let's just say you got $18 from the tasks and you need $2 more in order to withdraw because the minimum limit is $20. In many cases, people tend to deposit first. The minimum that you can deposit is $10. In a situation like this, people deposit first before realizing that they need to complete KYC first. And if you fail, your account will be restricted.
So you can resubmit it or ask the live support for help.

Most centralized exchanges that require KYC will ask for it first before you can enter your account and use their service. In cases like that, you can always move on to something else or create a new account if you fail to get verified. But when they don't ask you for KYC at first and you can access their services like deposit and withdraw, they can ask for it anytime. So if you can withdraw in that situation, then you need to withdraw first in order to not get restricted for multiple failed actions. That is what I was talking about.

The impact can be very different from each exchange because there are also exchanges that do not have to carry out KYC but can be used as usual without any obstacles. For example, some exchanges do not have to carry out KYC but can be used comfortably by everyone, please see this topic mate No-KYC Exchange Encyclopedia (https://bitcointalk.org/index.php?topic=5461920.0)

But for exchanges that require KYC for each of their users, the very real impact felt by the user is not being able to make a deposit when he fails to verify his KYC. I saw this on the Kucoin exchange, which currently requires KYC to be able to make deposits into the exchange, so if you have also failed the KYC verification, please try again if this is required for the exchange you are using.

See KYC as a means of privacy invasion because you choose to do crypto, they want to profile who you are, what you are and what you do with the money you bought with crypto and there aren't any repercussions of any form, only that you will not be allowed to deposit in any of the centralized exchange. There are other non-KYC exchanges though, you don't have to use the ones that request KYC by force. The highest they can do to your asset is that you wouldn't be able to trade and can be allowed to take off your purchases from the exchange.

However, if you are a regular trader who wants to use centralised exchange by any means, you can do basic KYC like providing your surname, first name, and email, not necessary that you provide your primary details, provide dummy names and proceed with your regular trading. I believe Kucoin still does this despite the recent spike in KYC requirements but make sure that you live only a small amount on their platform when trading and when you are done, withdraw everything from the exchanges. Centralized exchanges are for trading and not for keeping your coins.

Yes, there are still exchange platforms on which you could really freely be able to make use without having that need of KYC which example is Kucoin.The only thing that make you do able to comply or have that verification if you are really that someone who do make use of other some common features which it would really be leaving you no choice but to go into further extent for you to be able to make use of that feature but if its not really that something that you could make use then you would really be able still to make use of platforms without needing those kyc its up to your own choice and needs because everyone does have their own choice and preference
when it comes to this matter.

Its not shocking that this community is really that highly frowning upon when it comes to these verifications on which i cant really blame them which even myself is really that itching whenever we do speak about
verification or identification via sending out those documents or really that simply showing your information which it is really that totally contradicting in overall essence on why this
market had been created or simply crypto.

That is if he complete the KYC but the OP said if he failed to complete it. KYC is optional, I mean even if it's mandatory we still have the rights to ignore it. As long as there are no money yet stuck in the platform there are no consequences about it. A trusted platform won't just use our KYC without our permission but they can get hacked and that is the time that our data's can get leaked and misused.

It's scary because we can get in trouble one day for the actions that we didn't commit. I think we are lucky that many of us didn't experienced it, because we haven't got any complaints yet or bad records when we get a certain document or when we apply for something.

Yes, we're free to comply or not whether it's mandatory and changed to that. But the matter changes when we've got stuck money there and that's a different story.

Even we don't want to but if we want to withdraw and move that fund, we have to comply for the KYC. Those that fails to comply kyc, there could be some reasons for it and inaccurate details that they have provided.

That's to expected when we use platforms that we have no control over our funds. When it does and they're affected and customers are also affected, it's either they will reimburse the damages or much worse that they don't.

If you fail to complete the KYC process on an exchange, it certainly means that you cannot use the exchange to carry out several transactions. Usually, you will not be able to carry out several trading activities, deposits, or most certainly withdrawals. Withdrawals on DEX exchanges will usually always require a KYC process. which of course this must be resolved.

Well, if you fail, sometimes there are exchanges that give you the opportunity to repeat the KYC process and tell you what caused the previous KYC failure. Usually there will be several opportunities. However, there are also exchanges that do not provide that opportunity. So if it fails, it fails and you have to try with another Gmail account. This is what's troublesome.
Moreover, if you already have assets in that account, that means the assets cannot be withdrawn.

Depends on their KYC policy and when you join them. If an exchange only changes their KYC policy recently, they might give users, old and new users, a little bit time to complete KYC or leave. So if you are still in the window, you can submit withdrawal and leaven their exchange if you don't want to KYC. Some exchanges can block new deposits if a user has yet completed KYC.

Usually exchanges will give each user a default maximum attempts like five attempts. If you fail with KYC after five attempts, you will have to contact them through support and ask for expansion of some more attempts. You will have to wait for their customer support staffs and approval with additional attempts.

You are on point, and to buttress what you said, some will merely maintain a limit on your account without further sanctions. Others will not allow you to make any withdrawal or limit your withdrawal if you refuse to complete the KYC. Above all, I do not see a reason why anyone should not do their KYC when they fully know they are not dealing with a no-KYC exchange. I love to operate my account without any issues or restrictions whatsoever, which is why I make sure that I complete my KYC before performing anything financial therein. I do not see how this is affecting me in any way since I do not have anything to hide.

Frankly, any company/business that preaches no-KYC should be wary of, it might not be immediate, but the risk is higher. They can manipulate your account without any remorse or anyone questioning them, scamming you bit by bit or disappear entirely.

If you decide to register on a centralized exchange, you should be prepared for the fact that the exchange can make verification mandatory at any time. And if you are not going to pass KYC initially, you should have the minimum necessary balance on the exchange in order to withdraw it in a timely manner.

That's the trouble, if they are not asking for KYC they are clearly stating that they do not care about governments and their laws, that's the most important part. Governments require exchanges to ask for KYC, which means that as an exchange you have to ask for KYC otherwise you are doing something illegal.

If you believe that someone will be doing something illegal for you, and not to you that means that you are gullible. I believe that anyone who is willing to do something so illegal, should realize that you are not going to end up with anything better in the end, and shouldn't really get anything done. It's just that simple and we should be making sure that we deal with a KYC place if we pick an exchange.

Sorry, I don't see it that way. What I see boldly written, though succinctly, on such action is the underlying selfishness of these exchanges to psychologically sap their customers by making them think they're not KYCing upon registration. They tell them that they want to safeguard their privacy that's why they aren't asking for it. That's not true. What these exchanges do is trick their customers in and later reveal to them that they've to do a KYC to upgrade their status to enjoy certain privileges on the site. These privileges will include, among other things, withdrawal limit extension. For me, I won't choose an exchange based on whether it demands a KYC or not. I check other vitals.

Well, some lower tier exchanges exchanges offer a certain limit of withdrawals or trading volume for unverified users and it usually works fine until someone deposits dirty coins (or trigger any other security alert). This is the best what CEX can do for unverified user. People are too naïve if they expect more and getting "sapped".

Anyway, most of top tier exchanges are now working with KYC and this leaves no choice.

This activity is not something am unfamiliar with as a gambler, we all know that those task deposit  it's part of an exploit strategy used by these casinos to coerce gamblers to without a choice make the needed deposit to meet the withdrawal limit. And this event for KYC after deposit is quite understandable.

But it's different for when a gambler independently create an account and made a deposit into the account without completing kyc, that's what I mean by carelessness in my first comment. And a lot of gamblers still do this most of the times, so how do you describe that if it's not an act of carelessness.

One of the possible things could happen is freezing your funds, but of course, there's some such reason why you need to submit a KYC and not just what they just want, better to read their terms and condition and also agreement with the cases like this, most of the platform doesn't mandatory the KYC but still its ideal to use to support your account for verification, recovery and other layer of security. But of course there's a difference like withdrawal if you are not verified account.

You risk losing your funds and I believe those are private exchanges and there are alot decentralized exchanges  that doesn't require you to complete any kyc at any point but for most of the exchanges I know,  you'll  definitely  have to do kyc on registration or when you want to do withdrawals and most times we fall for all these traos because we fail to read the terms and conditions of a service before jumping on them for usage which is very wrong.
To alot of people,  kyc is very important  and I do agree with them but I have no issues giving out my kyc to a platform I trust be it gambling or just an exchange.

The risk of freezing funds is very small when KYC fails and it also depends on the regulations of each exchange. Like Binance, even though it doesn't do KYC, there are withdrawal limits given to Non-KYC users, freezing funds only occurs on problematic accounts. Currently, all exchanges require KYC to be able to enjoy the full features or if you want to place a P2P order you need KYC and a bank account.

When we are dealing with a platform that at least for now can be trusted, of course, we will have no difficulty in carrying out KYC. However, if the platform ends up having problems in the future and goes bankrupt, there will be concerns for every user who does KYC there.

people who care more about privacy have another option with decentralized exchanges. Of course, each with its own considerations. because some traders don't like decentralized exchanges regarding fees. or something else.
However, those who don't have problems with KYC data can get many centralized exchange options for their trading activities.

You saying that kyc fail is not problem but Its not true. when any non kyc ask for KYC  this is clear sign that technical team gas found any more issue with your account something like double account or suspicious source of deposit. failing in KYC most times cause fund freezing. Binance will not let you deposit any coins until you do KYC succefully so talking about freezing fund in Binance is just useless. The real problem with these exchanges which allow to ise some feature without kyc but sometimes the exchange freeze fund for further information and ask for KYC.

Dexs are best way to protect privacy but it is not for day traders. Ethereum network fee is very high and day traders will never accept to pay high fee for trading coin there while cex allow fast trading and low fee but only issue is privacy which most of the users doesn't want to reveal and that's why they hesitate to complete kyc otherwise once KYC approved then chance of any issue are almost zero

Any non compliance to the KYC request by a casino will always lead to a penalty the trader will not like to have, there's nothing like partial KYC, if you're providing the required documents then make them in full and don't make any omission because it will lead to penalty, am sure such trader that failed to provide the remaining required documents for the KYC verification would have got stucked along the way without having what to present, in this case who to blame.

if you fail to carry out KYC verification, of course the thing that you will definitely experience is withdrawal failure, so it is important to do research first on the exchange that you will use, if they require KYC, then it is your choice to continue using or not to use that exchange.


the thread created by Ratimov is really helpful for people who want to make transactions on the exchange without having to do KYC.

It is obvious that there are some exchange that don't disclose that to the customers unless people that are using the exchange tell you that the exchange requires KYC.

 I don't know why many people frown at KYC verification but I think sometimes, it may be as a result of previous experience that is making people to be more conscious about dropping there data on exchange except the exchange has user data protection which will enable individual data to be well kept in a portfolio where no one has access to it even though the exchange get hacked.

 There may be some careless exchange that would always requires KYC verification for users just to keep it to themselves and it can be sold out if things get worse.

That's because kyc encourages identity theft in many ways.

You're exposed to a third-party attack should such an exchange or company get hacked as your data/details can be stolen in that event and be used for impersonation and other criminal activities to your person. Etc.

You'll need to go through this thread to get the whole idea of why many people frown at KYC. Why KYC is extremely dangerous – and useless (https://bitcointalk.org/index.php?topic=5221497.msg53726647#msg53726647)






 

I'm not afraid of exchanges being hacked and my personal data being stolen. What I think is even more worrying is that the exchange staff deliberately stole our information to sell it to third parties and they used it for things without our knowledge. It can be said that personal data is a very valuable commodity and is purchased by advertisers at very high prices, so it is difficult to guarantee that exchanges will be strict in protecting their personal data. 

But protecting personal data today I think is no longer effective when we are also using social networks, online payment applications...most of which require KYC to be able to use.

I agree.

that's why it is important to think first before depositing on a certain trading platform that requires KYC, since you'll be force to submit your KYC to continue using that platform and to save your funds. There are exchanges that doesn't require KYC so you don't have to submit any personal information, but make sure they are reputable enough for you to trust them when it comes to your funds.

For not doing your KYC verification, you might not be given access to withdrawal, although exchanges differ in handling KYC issues. Some exchange would not allow you withdraw big amount of funds, but they will allow you to withdraw little amount of funds. While some wouldn't even allow you to withdraw at all, until you have completed the KYC verification. There are decentralized exchange too, these exchanges don't do KYC and if you care about your privacy, they are the best. Exanple of fecentralised exchange is bisq and Agora Desk, you can look at it here (https://bitcointalk.org/index.php?topic=5461920.0)

The Kyc is based on the various exchanges,Some will do the kyc as an compulsory one.The exchange which ask you to verify the kyc will mostly trusted exchange,some fake exchanges also ask the kyc verification.The fake exchanges will do the sale of kyc which was submitted in the exchange,So they raise some funds from the kyc deal.Even though some exchanges ask you about the Kyc,it’s essential for the trader to check background verification.This help the young people who are fear on trading with the new exchange.

Yeah, that’s some of the trick in the book. They try to leverage KYC by not making it mandatory but, ensure your limited to certain amounts per day, a week and in a month. While this might be disturbing, it not only ensures you stay within safe zones but in the event of a hack, your most likely to have most of your funds stay put while the hacker can make away with only the limits as the period of being in control allows (that’s in a case where your individual account is been hacked).
When it comes to hacks on the exchange itself, that’s a different story.

Meanwhile, the limiting of withdrawals based on KYC will by some means push you towards having the verification down but, you’ve got to establish good reasons to let any exchange out there have your details and be sure of its safety.

Obviously it's difficult nowadays to effective or completely avoid kyc with what you have said I agree on that but at least in the areas you can avoid based on available alternative options that gives same pleasure or satisfaction it is important you do avoid it with your full chest.  helping in reducing a common spread of your data in so many kyc required platforms increasing your risk of exposure.

Exchanges just want to make you tired of having the heavy restrictions they put in using non-KYC account. More like you are using a demo account but with real funds, most of the features are limited and you can only enjoy the full platform by submitting the KYC they are asking. It might be helpful to have a limited withdrawal amount in scenarios like being hacked but most of the time it sucks especially if you are transferring your funds actively on different wallet and exchange.

I am not sure anyone mentioned about this but there are some exchanges that will give access to deposit addresses only after you complete your KYC which is a really good thing in my opinion cause if the user can't able to do KYC then he won't lose any money at all but it's not the same on every exchange where most likely you will be restricted to withdraw as many others said until you complete KYC.

There are very few no KYC exchanges left but even on them you will be restricted from a lot of things like low withdrawal limits, won't be able to deposit fiat, can't access more trading like futures and derivatives.

Stick to one reliable platform as it is almost impossible now not to do KYC. You are right just don't do KYC on multiple platforms as the risk of getting your information leaked is huge but still if we are talking about the fact that we have already given our information to one platform it is still possible for data to leak.

We are really forced to do KYC to completely use all the features of a platform. To be cautious we should always do this on the most established platform we are using and make sure it is not a fake website.

You are right, on the past when not going through KYC was still an option then it made sense to chose to exchange your coins on several platforms in order to not put all your eggs in one basket, but with the change on the regulations and the need to go through KYC then it makes more sense to use a single platform.

As in this way you only expose your information once instead of doing so several times, however this means the exchanges at the top become even more powerful to the point one of them could reach monopoly status.

Because in the past exchanges were given leniency with their regulations so that they still allowed users to use the platform without KYC, but now the regulations have become stricter and the attention of many governments has put pressure on the platform, including users, to comply.

It will be very difficult to use one platform, when you have certain coins as a result of an airdrop or bounty while the coins are on another platform, not the platform you use, then they will definitely register and do KYC to be able to sell the tokens, but it wouldn't make sense if can really survive on one platform.

Still use it wisely, because this is a small risk for you when submitting documents for KYC, even if there is other leaked data, we can't do anything except that only the platform can cover it.

You are right, we will experience limitations in using the features provided by the exchange if we do not carry out KYC, such as having a very small maximum withdrawal and so on, which you mentioned, I have experienced on several exchanges.

Maybe talking about the negative impact that will occur for users who carry out KYC, when the exchange goes bankrupt or is hacked, our personal data will potentially be disseminated and could be traded by irresponsible individuals for use in criminal acts.

Including me personally doing KYC on several exchanges because it is necessary to exchange coins that I get from bounties or airdrops, like it or not I have to do that, because it is very varied, staying on one exchange also in my opinion is not logical for someone who depend on the world of crypto currency which takes advantage of various prize events.

Maybe the best solution is for people who store their eggs in an exchange that already has permission and supervision from the government in your country so that everything is safer.

Of course, KYC matters!
If you do not submit your KYC, the platform may freeze your account and confiscate the available balance. If you care about your privacy, do not use such platforms which ask for KYC. I would suggest using agoradesk.com, which is a platform where users can trade between them, and there is no need for a KYC. There are a bunch of other platforms that do not ask for KYC. But you have to search for it and check if it meets your needs. Recently, coinbase started closing users' accounts even thought those users were KYC'ed there. I don't care about them since previously it was proved that they sold user information. 

If that exchange is not scam and does not plan to scam customers, they will announce their KYC policy change and give their customers enough time to decide one of two options:
- Withdraw all money, refuse to complete KYC.
- Submit KYC, finish it and use full service of the exchange.

But as a customer, when you see such KYC announcement and given time to withdraw your fund, you should withdraw all your funds first. Then if you like, you can submit KYC and wait for approval. If your KYC is completed successfully, you can deposit your fund again.

But Reminder: do not keep your money in online accounts (https://bitcointalk.org/index.php?topic=5421039.0)

This is not entirely true, the circumstances will determine if you are going to be allowed to withdraw or they will not. First of all, when you register with a centralized exchange, the first they disallowed you is making deposit, they will not allow you to deposit any coin into the exchange and if you already have coins on the exchange prior to the announcement of KYC i.e if they don't allow accept KYC before and later change their mind, they will open withdrawals for some people to remove their coins if they don't want to do KYC but will not be allow to do trading on the exchange.

There are some exchange that ask your primary details which you can provide with false information and use the exchange if you want to use that particular exchange but it doesn't worth it because if they suspect you of anything, they will ask for other details and if it doesn't match the first information you provided, they can seize your coins till further investigation is carried out.

You can easily verify kyc on major exchanges like binance and kucoin but your personal information will be sent to third parties but your account will be protected. In that case it is dangerous to submit documents for kyc verification in low quality exchange, so first be specific about which exchange you want to pass kyc. KYC is essential for processing large fund deposit and withdrawal both because this customer is valuable. But i think using kyc anywhere else without exchange is dangerous because they can seize your documents and use them for bad purposes.

Identity theft is already there but I think thefts are more interested in money than a simple data. I know many people still hates a KYC for different reasons but they should understand that it is also important and it could discourage the fraudsters of doing an illegal deed because this makes them easily tracked.

KYC is not the ones that are dangerous but it is when someone steals it from you and impersonates you but we shouldn't worry as long as we know that we are using a very trusted platform with no or less history of being hi-jacked. And they definitely improve their security from time to time because it can affect them once something bad happen to them or to their customers.

KYC does matter in my case. To me KYC seems like a hassle process Because I feel embarrassed to present personal data to anyone else.
So when I am going to exchange my fund then I am seeking for those exchangers who don't asked for KYC verification.
However, the exchangers say that as aml (anti-money laundering) they keep these know-your-customer(KYC) terms. But I think it's wisest to keep your data safe so you can use trusted exchangers that don't require kyc verification. These exchangers can seize funds for your kyc verification at any time.

Many people who do KYC think it is a hassle and they are not at all prepared to do this KYC, rather they don't do KYC to protect themselves. However, there are many exchanges where you must complete KYC as they will not give you access if you do not have KYC for withdrawing your funds. Although there are some exchanges that provide access for small withdrawals but when withdrawing large amounts you can never do so without kyc. If you want to withdraw large amount, you must complete kyc verification, but you will be allowed to withdraw from the exchange. Also, if you care about protecting your privacy, you can definitely use decentralized exchanges, where KYC does not matter, and these are the best for protecting your privacy.

These days, most of the exchanges especially reputable or popular ones already have and it is really required. I agree with you that it is being hassle and embarrassing to share your personal information with a centralized exchange, like you already trust your funds to them, and at the same time your personal information also which is also really important and sensitive.

Firstly, I believe KYC is government's way of winning the war against true Decentralisation and compliance has constrained exchanges to have it from almost every CEX exchange user.

As much as this might be a healthy practice for prevention of fraud and other vices, it negates the very essence of the blockchain technology.

Limitations attached to not having kyc is that you can not withdraw your depositsled funds from an exchange where you're yet to KYC on or you cannot withdraw beyond a margin.

That means you have your resources stuck in there until you get KYC'ed.

Not only exchanges but every platform that implements KYC and does not inform their existing users should be considered a scam platform. For example, OKX users didn't need to do the KYC, but they started implementing KYC. Kucoin, Bitget, and now OKX are asking for KYC from users, and they are doing it by publicly announcing this.

Sometimes, KYC does not guarantee that users' funds are protected if they keep them there. Coinbase started closing accounts even though users were KYC verified. I did not check what was going on.

This is the most concern of those who claimed to be non-KYC exchanges because when you deposit, they will never require KYC, but when you decide to withdraw your balance they will suddenly require KYC verification. Otherwise, those amount will never be withdrawn and will only stay at an exchange. But with clear KYC exchanges, every time you deposit and withdraw your balance, KYC verification will always be compulsory.

There is no problem if you have not deposited your funds to the exchange, so it is a problem if you have deposited and want to withdraw your money, some exchanges require KYC to transfer to your bank account or your crypto wallet.

Do you think Coinbase is trusted with the personal information? I thought it was. The reality is it is not trusted with personal information. They have a record of selling user information on the Darknet for $1 each. Coinbase had a third party to collect their user data, and that company sold users' data online. Later, Coinbase agreed with the accusation.

Unfortunately, I am unable to give you the source. But if you look around, you will find the news. But if you cannot find it, mention me here or anywhere, and I will try to find out the source to help you. So, it doesn't matter how trusted the platform is. The data is not secured.

That is the reason why centralized exchanges will never be a safe avenue for our cryptos. Aside that KYC is compulsory, once the exchange was hacked, we can never get back the personal details we have disclosed. Which means they are free to use our KYC details if ever they will use it for other transactions. And that creates a bigger risk for us, and a higher chance of losing our crypto without us knowing.

Then you can never make a successful transaction like withdrawal or even deposits especially if you are putting a bigger amount.  But if you chose decentralized exchanges, then KYC will not be an issue since everything in there does not require KYC, plus you will have all the access of your transactions without putting them at a high risk of losing.

Not being able to use the exchange for one, or if you're stupid enough to deposit before verifying your identity, you won't be able to withdraw or trade with your money. At least that's what it was for Binance and most CEXs on the market. If you don't want to undergo KYC trade under decentralized exchanges instead. they won't get in your hair from the moment you sign in with them, and you can pretty much do everything a CEX could do, but don't go yapping about the lack of features cause most DEX out there's cut and dry, what you see is what you get when it comes to offering features and all that stuff. I wouldn't really suggest going for CEXs that are no KYC, cause more often than not they are shady as hell.