AML - Anti Money Laundering

[Findingnemo]

Has anyone had their cryptocurrency address frozen on exchange due to AML high risk positive after some transaction from address that is black-listed?

Personally I reported someone who traded with me on p2p site who is actually hacked someone's bank account and used the funds in their to buy bitcoin from me but luckily the amount isn't that big it is only $100 so I returned the funds to the same bank account from my own pocket to avoid any risk coming to my bank account then I reported the user to LBC support team and they immediately locked his/her account with few thousands dollars worth of bitcoin in their then the person used to contact me with the old chat because it is actually active for few months but he said LBC never released his funds and he lost it.

[abel1337]

There have been multiple such cases. Not only because of AML high risk positive after an transaction from some address that is black-listed, but it can be for any reason the exchange wants it to be. They can make up literally any reason and call it suspicious. Using a VPN? Suspicious. Having too much money? Suspicious.

One of my friends got a temporary binance banned for using VPN from different countries each login. I mean what the Heck we are using a VPN for protecting why we still get banned If the second auth pretty much match we safe right

Maybe your friend used an IP address from the VPN your friend is using that Binance are banning. I'm not so sure about this but maybe Binance has the list of flagged IP addresses, If you log in into those your account will be flagged. US Based IP is the one I can think of that your friend used that time since they binance is surely flagging those, This is why they encourage US users to use Binance US.

[coupable]

As suggested to you by the rest of the members, the best solution is to use the peer-to-peer services provided by many platforms such as Binance. It is also advisable to split

Binance is not a good option. You can not trade P2P unless you KYC verify your account. I was able to have a circle around me who regularly trade crypto. Most of the time they have my back 😉

Like you, I use relationships from a circle of close friends (fecebook) who are constantly trading in the crypto space. But this option may not be the best option to exchange a large amount, with all the risks it carries. When I suggested Binance, it might not be the best option, but I've used it several times without problems and haven't read any complaints about it. It certainly requires identification procedures, but I suggested it from experience and there are certainly better options than it.

[BitcoinGirl.Club]

Like you, I use relationships from a circle of close friends (fecebook) who are constantly trading in the crypto space.

It's one of the advantage when you are in the space for long time. But I think not many have the same network and for them P2P platforms are only hope. Problem with P2P platforms are they cost a lot of fees when you are going to with any non-KYC site. Localbitcoins used to be good and then they were into the same route of asking KYC from the users.

We can enjoy the true decentralized financial system when crypto will be accepted by a large portion of the total population.

[o_e_l_e_o]

It's sad, they are policing crypto users and for them using mixer means you are whitelisting your black coins. Privacy does not matter for them.

Any platform, service, exchange, or wallet, which implements blacklists and does not accept particular coins is actively undermining the core principles of bitcoin and should be avoided.

Problem with P2P platforms are they cost a lot of fees when you are going to with any non-KYC site.

On the contrary: A non-KYC peer to peer trade such as via Bisq or LocalCryptos often has far lower fees than the same trade on a centralized exchange, once you factor in the centralized exchange's trading fee and withdrawal fee.

[The Cryptovator]

Totally agree. I wanted to exchange btc to fiat. So now the exchange point  has their address frozen and demand verification from me. I had transaction sent by third-party and their addresses did not pass AML check. So now no fiat no btc.

I am not getting the exact case here. Where have you tried to exchange? On the centralized exchange or p2p exchange? What is the exchange name? Make sure the person you sent Bitcoin not cheating on you and not collecting your personal documents. Using centralized exchange means you have to be ready and always provide your KYC documents. Write more details about your case, so we may learn.

[SquirrelJulietGarden]

On the contrary: A non-KYC peer to peer trade such as via Bisq or LocalCryptos often has far lower fees than the same trade on a centralized exchange, once you factor in the centralized exchange's trading fee and withdrawal fee.

On peer to peer trading platforms like Bisq, trading volume is low and it can be a barrier for people.

Time is another thing. You will have to wait for trade partners to open your offer, open a trade, and complete it. On centralized exchanges with high trading volume, it can be done in seconds but no privacy, higher trading fees and risk to have account freeze.

On peer to peer trading platforms, don't chase for high profit from newbie accounts. They are very possibly scammers.