KYC: Bitstamp wants to know how much I'm making

[countryfree]

We all knew KYC was coming to exchanges, and well, this is it.
I've received an email from Bitstamp yesterday. It took me to a form which asks me, among other things, how much I'm making each year.

I don't like it, and frankly, I don't understand it.

I sure understand that banks want a lot of information when you apply for a loan, but I find it shocking that Bitstamp, an exchange which I've only used a few times (Bitfinex, Poloniex and Kraken are my favorite trading places), ask that kind of information. The other exchanges I'm using haven't asked anything, so I'll probably close my Bitstamp account.

Then, what does Bitstamp wants to do with my data? I believe they're based in the UK, but I'm not British, and I've never lived in the UK, so what's the point of inquiring about foreigners? Will they pass my data to the country which granted my passport? I've left that place years ago, so it makes no sense...

[miramare]

We all knew KYC was coming to exchanges, and well, this is it.
I've received an email from Bitstamp yesterday. It took me to a form which asks me, among other things, how much I'm making each year.

I don't like it, and frankly, I don't understand it.

I sure understand that banks want a lot of information when you apply for a loan, but I find it shocking that Bitstamp, an exchange which I've only used a few times (Bitfinex, Poloniex and Kraken are my favorite trading places), ask that kind of information. The other exchanges I'm using haven't asked anything, so I'll probably close my Bitstamp account.

Then, what does Bitstamp wants to do with my data? I believe they're based in the UK, but I'm not British, and I've never lived in the UK, so what's the point of inquiring about foreigners? Will they pass my data to the country which granted my passport? I've left that place years ago, so it makes no sense...

I guess they want to check that your trading funds are from your legal incoming. Sometimes, the requirements may be not from the exchanges themselves but the government they located.

[Reset779]

Sigh this is bad news.

Probalby will start some FUD, and we'll see another crashing in price as people try to veer away from exchanges.

That's why decentralized exchanges are going to pump in coin price.

Because you already know that KYC for exchanges leads to the banning of US customers. Just like how US people can't participate in ICOs unless they're certified... soon exchanges will have to do the same *sigh*

Decentralized exchanges are where it's at. We should really take a look at which decentralized exchange is making the top popularity. That's the one we should all flock to.

[BTCLovingDude]

what is there not to understand?!!!
you are using fiat, aren't you? and when you use fiat, you have to follow certain laws including this KYC/AML thing. for example if you try trading stocks with your fiat, they will ask you the same questions. even if you go to an online shop like Steam and try buying a game with your fiat they will ask your address,... for the same reasons.

so why are you surprised when they are asking the same questions when you try to use your fiat to trade bitcoin?

[penig]

Then, what does Bitstamp wants to do with my data? I believe they're based in the UK, but I'm not British, and I've never lived in the UK, so what's the point of inquiring about foreigners? Will they pass my data to the country which granted my passport? I've left that place years ago, so it makes no sense...

They dont care where you reside, the regulations they have tom comply with depends on where they reside.  They wont pass on your data to anyone, they simply store it so when audited they can tick a box saying "these are our checks".

[Reset779]

what is there not to understand?!!!
you are using fiat, aren't you? and when you use fiat, you have to follow certain laws including this KYC/AML thing. for example if you try trading stocks with your fiat, they will ask you the same questions. even if you go to an online shop like Steam and try buying a game with your fiat they will ask your address,... for the same reasons.

so why are you surprised when they are asking the same questions when you try to use your fiat to trade bitcoin?

Pretty sure they don't ask you for your income bracket when you shop on Steam with fiat............

[Marileno]

This is what regulation looks like guys. Closing your account is not the answer as it is only a matter of time before every exchange is required to do the same. This is the world we live in.

[VitKoyn]

We all knew KYC was coming to exchanges, and well, this is it.
I've received an email from Bitstamp yesterday. It took me to a form which asks me, among other things, how much I'm making each year.

I don't like it, and frankly, I don't understand it.

I sure understand that banks want a lot of information when you apply for a loan, but I find it shocking that Bitstamp, an exchange which I've only used a few times (Bitfinex, Poloniex and Kraken are my favorite trading places), ask that kind of information. The other exchanges I'm using haven't asked anything, so I'll probably close my Bitstamp account.

Then, what does Bitstamp wants to do with my data? I believe they're based in the UK, but I'm not British, and I've never lived in the UK, so what's the point of inquiring about foreigners? Will they pass my data to the country which granted my passport? I've left that place years ago, so it makes no sense...

This is not the first time bitstamp ask questions like this about the KYC policy. Well if you want to continue to use their platform or their service you should answer or provide what they are asking even they are based on other country you are still using their platform, so there is no exemptions, but for me bitstamp ask too much questions while other cryptocurrency exchanges just want your identity (ID) and the source of fund, I even doubt that they need all of those data they've been asking for customers. Bitstamp has a good reputation as an exchange but if you don't want to be asked questions like this then simply not use it, there are lots of exchanges out there.

[franky1]

in short regulations only ask for MSB to report people who make transactions over 10k in a lump/small time frame of smaller amounts that can be seen as moving a large amount often.

they need to gather identification info to ensure people dont just make multiple accounts..

but essentially its not a regulatory requirement to ask for income statements. infact 90% of KYC is about regulators telling companies to make their own policy handbooks on how the company will identify suspicious transactions. rather than a regulator demanding an entire life history

thus regulators dont need to know all that crap, but its the company that would ask all that crap because the company fears that not having peoples entire private/personal life story will get them in trouble.

in my eyes i have seen many exchanges overstep their boundaries. infact companies are not suppose to even freeze/seize assets, not even allowed to inform customers that a sars file has been sent to authorities or that the customer is under investigation/review.

the company is suppose to not act as a authority, but simply a witness.. allowing the transaction to go through as normal and just report the suspicious activity confidentially. its for the real authorities to get a court order and apply a asset seizure. not the company independently/by choice just seize funds

so when i see exchanges do crap like this, my mind says that the company has no clue and does not even know its job/purpose

[Lampaster]

People are to blame for what is happening. Bitcoin was conceived as an independent currency. But we turned bitcoin with Fiat into an asset for speculation. Why are you surprised? The use of Fiat implies following certain rules. Naturally, exchanges are obliged to follow these rules, otherwise banks will close their access to Fiat. Who is to blame for exchanges that give you what you want or you that require access to Fiat?

[zenrol28]

It really does not make sense at all. All they need to do is to view your trade history and they'll come up with an estimate of your profits. Maybe they're just testing if a person is honest to give an information that bitstamp already know. Too much regulations happening since last year. But I hope our data are safe with them.

[BrewMaster]

Bitstamp is a website, or a business, a centralized one at that. if you don't like their rules then don't use them. but that is going to be the same in any other exchange that is using fiat currencies sooner or later because that is how the world works. these businesses that handle fiat transactions have to comply with AML/KYC rules sooner or later.
the fact that they have not been doing it  so far means they have been postponing it.

[BingoDog]

We all knew KYC was coming to exchanges, and well, this is it.
I've received an email from Bitstamp yesterday. It took me to a form which asks me, among other things, how much I'm making each year.

I don't like it, and frankly, I don't understand it.

I sure understand that banks want a lot of information when you apply for a loan, but I find it shocking that Bitstamp, an exchange which I've only used a few times (Bitfinex, Poloniex and Kraken are my favorite trading places), ask that kind of information. The other exchanges I'm using haven't asked anything, so I'll probably close my Bitstamp account.

Then, what does Bitstamp wants to do with my data? I believe they're based in the UK, but I'm not British, and I've never lived in the UK, so what's the point of inquiring about foreigners? Will they pass my data to the country which granted my passport? I've left that place years ago, so it makes no sense...

Regulations related to KYC and AML are very strict. And they apply to exchanges too. They deal with fiat money lso, don't they? It's nothing aimed against cryptocurrencies or exchanges, although many would interpretate texactly like this, but it's an obligation if you want to run a legitimate business. I'm afraid you don't have much choice, take it or leave it.

[chocolaty]

We all knew KYC was coming to exchanges, and well, this is it.
I've received an email from Bitstamp yesterday. It took me to a form which asks me, among other things, how much I'm making each year.

I don't like it, and frankly, I don't understand it.

I didn't like it too, at first. I was hesitant on giving my identification cards to exchanges at first because I feel like its invading my identity. I want to remain my pseudonimity but policy is policy. The people I know told me that I do not have to worry about KYC because they won't use my ID for purposes other than verifying that I am a real person. I guess Bitstamp is just following their regulations and given that it is a reliable website, no need to worry. Future exchanges will comply to KYC policy soon, as far as I can observe in the previous ICOs that have ended.

[Skizzewizzie]

I don't like this policy too. It's enough that we have to verify our identities, now we have to tell them what we make. This means they are going to start taxing earnings on cryptocurrencies.

[countryfree]

in short regulations only ask for MSB to report people who make transactions over 10k in a lump/small time frame of smaller amounts that can be seen as moving a large amount often.

they need to gather identification info to ensure people dont just make multiple accounts..

but essentially its not a regulatory requirement to ask for income statements. infact 90% of KYC is about regulators telling companies to make their own policy handbooks on how the company will identify suspicious transactions. rather than a regulator demanding an entire life history

thus regulators dont need to know all that crap, but its the company that would ask all that crap because the company fears that not having peoples entire private/personal life story will get them in trouble.

in my eyes i have seen many exchanges overstep their boundaries. infact companies are not suppose to even freeze/seize assets, not even allowed to inform customers that a sars file has been sent to authorities or that the customer is under investigation/review.

the company is suppose to not act as a authority, but simply a witness.. allowing the transaction to go through as normal and just report the suspicious activity confidentially. its for the real authorities to get a court order and apply a asset seizure. not the company independently/by choice just seize funds

so when i see exchanges do crap like this, my mind says that the company has no clue and does not even know its job/purpose

Yes, I'm thinking quite the same thing.
Nobody has asked Bitstamp to collect that much data.
I had sent them proof of ID, proof of address, and details of the bank account I've used with their services, and all that is fine with me, but they have no need to know more. I mean that, nothing more would be needed to buy a car, and get it registered.

It's especially shocking that I've only done a very few trades with Bitstamp. I did way more trades with bitcoin.de or Kraken, and they ahev'nt asked anything. I'm still checking a few things, but I think I will close my account.

[numismatist]

It's especially shocking that I've only done a very few trades with Bitstamp. I did way more trades with bitcoin.de or Kraken, and they ahev'nt asked anything. I'm still checking a few things, but I think I will close my account.

Either you close it yourselfes, or they are closing down your account? Sounds like Asterix Pirates sinking their own ship as a service

I would not falter. But for sure reduce the amount at stake, asap. Doing smaller trades, doing them more often.
What I would like to know if there are any "wrong answers" on their questions? Did they finally signalled that they did not liked your answer?

[onnz423]

Are they asking about your salary, or how much you are earning from Bitstamp alone? Might just be a marketing email so they can target certain products to you later on. Doesn't seem like necessarily a big deal.

[daarul50]

We all knew KYC was coming to exchanges, and well, this is it.
I've received an email from Bitstamp yesterday. It took me to a form which asks me, among other things, how much I'm making each year.

I don't like it, and frankly, I don't understand it.

I sure understand that banks want a lot of information when you apply for a loan, but I find it shocking that Bitstamp, an exchange which I've only used a few times (Bitfinex, Poloniex and Kraken are my favorite trading places), ask that kind of information. The other exchanges I'm using haven't asked anything, so I'll probably close my Bitstamp account.

Then, what does Bitstamp wants to do with my data? I believe they're based in the UK, but I'm not British, and I've never lived in the UK, so what's the point of inquiring about foreigners? Will they pass my data to the country which granted my passport? I've left that place years ago, so it makes no sense...

It seems that such user information requests are used as a requirement in exchange for Bitstamp and perhaps those requirements are aimed at preventing crime such as money laundering and illegal funding. However, I may also feel uncomfortable with such information requests because with that request the anonymity of a decentralized system used by a crypto will be in danger of security and users are afraid that information about it will be misused by the exchange service providers.

[darkangel11]

what is there not to understand?!!!
you are using fiat, aren't you? and when you use fiat, you have to follow certain laws including this KYC/AML thing. for example if you try trading stocks with your fiat, they will ask you the same questions. even if you go to an online shop like Steam and try buying a game with your fiat they will ask your address,... for the same reasons.

so why are you surprised when they are asking the same questions when you try to use your fiat to trade bitcoin?

The problem starts when exchanges that don't use fiat like bittrex and poloniex are starting to implement similar requirements. To be honest i find it to be abusive bullying, while they're calling it "obeying the laws".
As for fiat, you never own it, you're only leasing it from the issuer (the government, central bank and so on). They can disable it, take it from you, control your purchases, because they own it.