Bitcoin Forum

KYC compliance in bitcoin can really help it to gain legitimacy plus it will be available for more common people.

Read More: https://shuftipro.com/blogs/kyc-compliance-for-bitcoin-business/

What you guys suggest?

Provided you draw a clear line between individual businesses implementing their own KYC procedures and nothing whatsoever being implemented at the protocol level, then that's fine.

Businesses have laws they have to adhere to.  Even if those laws are a direct cause of identity theft, by mandating that companies store a vast trove of customers' personally identifiable and financially sensitive information for hackers to then steal.  Yay for dumb laws!

When hackers steal my sensitive personal data stored by a company,I think that I have the right to sue that company for compensation.Those companies have to maintain a strong level of online defence and be responsible for any break in their security.Those KYC laws are dumb,but there`s no better system for indentifying suspicious people.

Why do you want to introduce KYC for a decentralized technology?
I can't get your point, seriously.

It is too late for KYC to be too late, because the current BTC coin has too many people and they can not do it for now, so KYC is only for new coins.

Though having a compliance on KYC and AML is against the decentralized nature of bitcoin but still having KYC and AML compliance will help bitcoin establish a solid foundation on every nation. With this compliance more people will be joining bitcoin since it is already legal and they will feel safe. This will also increase bitcoins value on the long run.

verification of personality is very good! but do not forget that the popularity gained bitcoin - it is because of its anonymity! this is the main advantage of bitcoin !!!! in any case, this verification can be circumvented by someone else's documents! We need that there was a powerful, common base of personal verification! In any case, we need regulation, the only way to safely enter this market is big money!

This is great assurance that you will have the capability in securing the transaction and a knowledge that you can truly trust the person you are having a transaction with, But this can take away the animosity of someone that are using Cryptocurrency but they will surely have a secured transaction between themselves, I really think this is a great idea so Cryptocurrency can sure brought up to the ones that are not well known to it,

Why we need to do KYC compliance for bitcoin because its a decentralized currency and if we do KYC then what guarantee is our personal info never be leaked or hack. Now many investors hold bitcoins in their wallets and all never want to do KYC compliance because they don't wanna reveal How much bitcoin they are holding. so there is no need to do KYC for any private company.

KYC Compliance reduces Bitcoin liquidity, making fiat <-> Bitcoin exchange a bit complicated, its an artificial market barrier that prevents wide Bitcoin adoption and affects not only potential malicious users. 

It really isn't. It has nothing to do with Bitcoin at all since all these laws are meant to hit businesses authorities can extract precious information from. In all cases you can avoid dealing with them if you find these laws to be ridiculous and privacy breaching, which they are. This is exactly what made local crypto markets boom especially in the last year, because people just aren't interested in going through all this nonsense. Positivity out of the way -- buying coins locally isn't without risks as we have seen and heard about this year. People holding crypto are more than ever a walking target due to the increased value and popularity.

Checking KYC when investing in ICO or on exchanges and exchangers has nothing to do with the legalization of bitcoins. In itself, the KYC test contradicts and damages the decentralized nature of bitcoin and the principle of its anonymity. Therefore, if possible, this check should be avoided, especially when investing in ICO projects or participating in them as participants in the generous ICO campaign.

Some businesses do require KYC for their own safety and procedure of identifying each and everyone who purchase the product to them. It is required to most businesses to avoid money laundering so that they can trace whose person is purchasing the product. But when speaking about of Bitcoin as a decentralized digital currency, it is a bit odd to combine both decentralized and centralized establishment.

They should have a very good defense system for hackers that can breach their network to steal every personal information of their clients.

KYC is very private and I really agree if it will help the development of more efficient bitcoin again, but .... as long as they have to be responsible for the security of KYC itself because we as bitcoin users still have a fear of the security of our personal data

If the government is actually the one requiring KYC and not some ICO developers gathering and selling data then I am cool with it. You see KYC as of right now is being abused by some ICO developers and they are actually selling our data in other devs that will also planning on having their own token promotion, this is clearly a violation of our privacy and is not tolerable for us consumers. The government also needs to monitor this kinds of activities so that this kinds of attempts won't happen.

This is exactly the reason why governments are not allowing it. Atleast for new coins, this should be done so that all may enjoy benefits of crypto.

This is the main reason why I'm really afraid of. It can be really exploited and we don't know if those ICO projects are really protecting their investors or bounty hunters who submitted their personal data. We all know that if it went to the hands of criminals, they can do anything with our information, without us knowing and its gonna be late till we find out that our identify has been stolen and exploited by them. There's already an ICO wherein the the personal data has been leaked, so the risk is already proven.

But how would you know which exact company your data got compromised. A lot of people have accounts on several platforms and you fill your details on all of them because you need to have unrestricted access to the services being provided. Hacks still happen today even to reputable exchange sites but because it does not involve movement of funds and not getting the right media attention, it looks as if nothing happened.

I really don't have issues with sites asking for KYCs but concern is who is ensuring they themselves are not compromising on the information entrusted to them and it being uniform rather than arbitrary request that we see on every platform. The moment that is addressed, I think its all going to be for the best.

That is why even though a lot of people are against it I still want to see the cryptocurrency market be regulated specially the exchanges who will be putting of newly listed ICOs. We should push for a more tougher kind of screening process for this kinds of ICOs as we really are risking our information eoth their KYCs. Unlike what stock brokers are doing the personal data we are giving to them is bind by law to only be seen by them and they cannot share it to others as they will be breaking our client privilege and most importantly our privacy.

I do not see that the KYC test has a positive effect on the process of legalizing bitcoin by states. The fact that during confidential transactions with confidential information will disappear and most of its holders will be known to the state for collection of taxes, will not solve the main problems of bitcoin for states - its decentralized and unmanageable nature and its great volatility. It is these two factors - uncontrollability and volatility of bitcoin that are the cause of the bad process of legalizing bitcoin and all the crypto-currency from the states.

Only talking about Businesses that would followed governments requirements but bitcoin doesn't really need any legitimacy but somehow it do adds up on the adoption where these merchants or businesses accept bitcoin and other crypto. They do need to comply it if they do like to proceed but these things are just applicable to those businesses residing into countries that having consideration with bitcoin.

Guys whatever it is I still think it is the best thing also I believe ICOs with proper KYC done can reduce the effect of ICO scams as well so it is a good thing Read more here:
https://shuftipro.com/blogs/kyc-services-for-icos/

For my point of view kyc compliance for bitcoin is no problem but there must be insurance that people's personal information will not be leaked in any case. If there is  believe there is business.

The KYC procedure in my opinion is fraudulent. You do not know who they will sell your data and how they will be used in the future. It's just very life-threatening.

If the business really needs to have KYC because it is a requirement by the government then they cannot do something about it. All you can hope for is to use your personal data properly and not sell it to other people for their own benefit. If you can avoid using a site that requires KYC then simply don't use it but then sooner or later, the services will have to comply with the government requirements so you might as well check out the company that requires KYC and then confirm if there are no issues in the past regarding data leakage.

As what I have read from the article:

Even if they don't want to do KYC, their business is also at risk of being shut down because of non-compliance so they just do it. I have no problems with KYC as long as they are a reputable company.

The KYC ideology is very good but we shouldn't forget that crypto is still not yet regulated worldwide and so you may not know who you're submitting your info to and what they're gonna do to it. Imagine you joined 10 different projects in one month and they all required KYC, think about the number of times you've spread out delicate personal info to unknown personnel.

In order for the KYC to function normally and to benefit, it is necessary that it be conducted by specially authorized officials, ensuring the integrity of the collected confidential data and that these persons are directly responsible for the non-preservation of this information.
Therefore, the fact that ICO teams now make such a check, which are collected only for a while for this activity, do not pass any verification themselves, and in half the cases are themselves scammers, is a parody of such verification and inflicts enormous damage on investors. This can not be allowed.

if it is like that KYC will be very helpful, and we as customers will be more comfortable in using it, because it is the responsibility of a company.

what insurance? it can not be proven that your data will be secure and will not be used for malicious purposes.

For my point of view the KYC process is a foul play. KYC law is useless.

I first saw and done the KYC on ico's which I joined quite a bit when it comes to kyc but it's better to protect our tokens and so their platform is finished better as it has for them to know where the involved and not in their ico.

Indeed. I have read through the TOS of various services requiring AML/KYC where they initially want to make it seem like your data is safe, but hidden within a wall of text they state that they may sell your data to third parties.

That's why people should carefully read through the TOS of the service they plan to sign up with. I know it's boring and time consuming, but you have no right of speaking when you blindly agree to all terms.

In any situation people should just assume that their data is compromised by evildoers, because no one but the service or the company they outsource their verification and storage tasks to knows what happens with it.

Following the kyc is a way of respect for the ico ended, there is nothing wrong with following the kyc because it is the modern way of security of an investor for his coins. and it is to admit the ico so they do not want to.

Giving information to third parties means trusting their security and staff to protect your information.

Banks losing customers data constantly and having no penalties for data breaches means people need to control their own information and money.

Anonymous bitcoin (https://www.cryptogamblingsites.com/trading/anonymous-exchanges/) exchanges and crypto currencies along with decentralized exchanges will keep increasing everywhere and KYC/AML will be for people who want to follow those rules.

Indeed, KYC is much needed to help prolong the life of Bitcoin investment by ensuring it would not be use by illegal people in illegal activities like money laundering, terrorist funding, smuggling and even scam investments that will use the Bitcoin platform. Without KYC thru regulations then for sure many countries will declare the illegal of use of this currency.

It's not harmful. It's a natural progression into the mainstream. KYC is going to be a requirement for using bitcoin with legitimate third party services, just like it is with fiat-accepting banking or gambling services etc, but if you don't want to use those that ask for documents to prove who you are then don't. You can use bitcoin without or just find services that don't require KYC verification (though they'll likely be unregulated services where your money is more at risk).

Yes, I agree with KYC Compliance for Bitcoin, besides it can help to gain legitimacy plus it will be available to people who are more general. This will also prove that Bitcoin can follow the rules like as other financial instruments.

I would say yes. KYC is needed. But it depends on the ICOs. ICO really needs KYC as few countries do not allow their citizens to trade cyprto currencies, so the ICOs get the personal details to verify that they trade with citizens who are allowed to purchase thier coins. Here what happens is, the documents taken are used for illegal move which should be avoided. But this has not happened so far and expect not to happen in the future. 

Completely agree. However, if we ca get identity checks to go through the blockchain then we can keep our personal information safe and still comply with regulations and good-practice procedure.


Absolutely agree, but we're here because of the blockchain. We can implement it in many ways, and doing KYC or AML checks through them is just one of those ways.


Fortunately we can use P2P exchanges for purchasing Bitcoins and decentralized exchanges for purchasing altcoins.

Although KYCs are a little scammy. Do KYCs and AMLs for banks prevent terrorists, drug dealing or laundering in fiat? Ehhhh nope.

I personally actually see KYC as something that shouldn't be in the crypto space. this also raises the risk of personal data leakage that could fall to irresponsible people.

IMO, people interest on crypto because of it's anonymous. When some company require the KYC, It will decrease people's interest on it.
But in my judgement, it's normal things as long as it's reliable because the company also want to track down people who often do the scamming attempt especially on ICO project !

I completely agree!

KYC is indeed needed. Still it depends on the ICOs. ICO really need KYC as few countries do not allow their citizens to trade crypto currencies. This is the reason the ICOs get the personal details to verify that they trade with citizens who are allowed to purchase their coins. Here what happens is, the documents taken are used for illegal move which should be avoided. But this has not happened so far and expect not to happen in future.

it's too late for KYC with bitcoin. Hodlers of bitcoin are millions of people. you can't get them with KYC now. It's possible with new coins, ICOs,...

I would appreciate in accepting KYC unless and until the personal documents i give are safe and does not get stolen or reused for any illegal acts. ICO do ask to know if the investment is from the citizens who either allow crypto currencies or have not yet announced bitcoin to be illegal. Few countries have prohibited their citizens from trading crypto currencies.

with KYC compliance it is very helpful for people who like business because with KYC compliance all can overcome criminal acts such as fraud and money laundering which previously occurred and this has caused people to panic and choose to quit but with KYC this helps people become more secure.

With this KYC, it will greatly help their businessmen to feel more secure with KYC, and with KYC compliance, this will help reduce the level of bitcoin fraud

which at first often causes fraud and money laundering and that makes people lose money and people panic.

I think that the KYC can be checked by exchanges and exchangers, which will be registered and checked for the ability to keep confidential data of citizens safe. Such a test can not be handled by ICO teams, which themselves do not pass due verification and are very likely to be potential fraudsters themselves. In general, KYC should ideally be tested by state bodies that must ensure the safety and security of confidential information of citizens and bear direct responsibility for its leakage.

I agree with your compliment. Most of the time KYC compliance is very harmful i think. I don't trust it because anytime they sell our data so that's not fully secured. Personal data hijacking is big harm and facing problem at future. Even someone can use any illegal activities.

Verification of KYC is allowed only for investors. With respect to participants in the ICO generosity campaign, the KYC verification is illegal. In general, the ICO teams do not need to be given the right to conduct a KYC check, since they themselves do not pass any verification now and are very likely to be scammers and use the collected data for illegal purposes.
A KYC check in some cases will be necessary, although in general this harms the principle of anonymity of the crypto currency. We need to agree with its conduct in order that the crypto currency will be legalized by the states. In the future, such a check can be avoided, referring to the decentralized exchangers.

Although KYC is really important for Bitcoin users but i have observed that there is no strict guidelines on how it will be implemented. Just requiring to submit an government ID's for those who did not travel is just a piece of cake for the illegal people. How can be the KYC receiver will so sure that the ID submitted are all genuine including the owners as we will just send a scan of soft copy of it? Therefore this KYC is still useless and need more improvement to fully serve its purpose.

Not. Bitcoin is save your future. Most of the people believe the bitcoin. So people share the KYC documents. It safe and secure. KYC is your future and person information. So careful to use and Shar. If trust any one. Then share. With out trust don't share. It good future saving. This information help to give some good opportunity to work with bitcoin project. KYC important of all country people. So people not share KYC.

I also don't like the idea of submitting your personal information for the sake of complying with KYC procedures. I'm even hesitant to submit it to exchanges. But the question is can KYC/AML really bring adoption that we all have been waiting for a long time? Sort of giving crypto legitimacy in the face of governments around the world? I don't think so. It can even bring more harm to us if personal data is not taken care of the party involved. Look at Shapeshift, they are not getting a lot of backlash because they are requiring crypto enthusiast to submit verifications. Not good for their business operations and at the same time, crypto lovers are not comfortable submitting their sensitive information like scan passports or government ID.

This is what I am thinking of, that time to time bitcoin (cryptos) that having KYC/AML will become legitimately to the government and the word of "decentralized" will be gone in the world of crypto, isn't? Yes, submitting personal data is very sensitive for us we afraid that maybe our information share may use others, or probably it may have a cause of a leak in hacking. I think almost exchange now having KYC/AML procedure so it really hard to avoid this thing in the crypto world.

States are delayed with the legalization of bitcoins and other crypto currency not because of the KYC check, but because the crypto currency can not be controlled and because of its high volatility. Checking KYC does not fix these problems. Inside its country, KYC can still bring certain results, but crypto-alaith owners can turn to exchangers outside the state, and to such that there will not be any verification of KYC. The KYC check only helps the government track our actions and does not solve anything else.

This may make sense under a normal, non-corrupt and objective judicial system. In my country (Ukraine), it is not necessary to count on fair decisions in the courts. Even after this to seek justice in the European Court of Human Rights is useless. At the end of last year, I sent two appeals against my state to the European Court, but our lawyers consider them there. Although as a general rule, one can add up to 20 pages to justify the reasoning for violations, and I put in 6-8 pages, they returned my requests and wrote that I exceeded the number of allowed page attachments. Thus, the state blocks complaints to the European Court. And to appeal such a decision is impossible. Thus, corruption is everywhere, including in the European Court of Human Rights.

I completely agree. Checking KYC does not give anything useful. Let anyone publish data on how much money was laundered as a result of KYC activities and how many people were prosecuted. I am sure that these will be either isolated cases or zeroes altogether. Is it worth all this effort? How is the database collected and used during the KYC verification generally used and stored? No, this entire information without any protection is stored in the company that collected this information.

You argue that if the ICO team conducts a KYC audit against their investors and bounty hunters, then this can eliminate the problem of fraud in the ICO? Very strange reasoning. In addition to additional fraud with our identification data, I do not see anything else here.
KYC verification is generally illegal for bounty hunters. We are not investors and should not pass this test.