Exchanges KYC/AML policy for early adopters.

[Sanitough]

Why are you worried? Binance is just a regular exchange, they’re not overly strict with withdrawals, especially since they handle billions in volume. They likely won’t even notice you. All you need to do is complete the KYC process. It’s pretty straightforward and usually gets approved in less than an hour.

Instead of stressing over things that haven’t happened and probably won’t, just give it a try. If you’re still doubtful, you can divide your transaction into smaller amounts to avoid triggering any system flags.

[Z-tight]

Why are you worried? Binance is just a regular exchange, they’re not overly strict with withdrawals, especially since they handle billions in volume. They likely won’t even notice you. All you need to do is complete the KYC process.

Sometimes it is good to be paranoid when dealing with crypto, especially when you are dealing with your life savings and you are about to deposit it into a custodial or centralized service that 'owns' the coins once they process and confirm the deposit.

If you’re still doubtful, you can divide your transaction into smaller amounts to avoid triggering any system flags.

This is one recommendation i also give to people, you will have to pay more in fees due to multiple tx's, but it is better than depositing everything at once and running into some kind of trouble.

[Darker45]

Why are you worried? Binance is just a regular exchange, they’re not overly strict with withdrawals, especially since they handle billions in volume. They likely won’t even notice you. All you need to do is complete the KYC process.

Sometimes it is good to be paranoid when dealing with crypto, especially when you are dealing with your life savings and you are about to deposit it into a custodial or centralized service that 'owns' the coins once they process and confirm the deposit.

I guess it's not really paranoia. I don't even think OP is worried. It seems he/she's simply doing basic due diligence or research. He/she doesn't have proof of acquisition anymore since he/she's an early adopter. He/she could indeed encounter related problems along the way. You know exchanges these days.

Considering that many exchanges ask for proof of funds or proof of your source of fund or proof of wealth out of the blue, it's just indeed right to make some inquiries and solicit suggestions and recommendations from those who have the experience.

[davis196]

I haven't been using any CEX since Binance introduced KYC policy. For several years only using DEXes. I am considering to use them again, but wondering what way I can prove I have crypto for long time (don't have any buying proofs as I did it longtime ago when it was available with full privacy and lost access to these transfers history). So what exchanges I can use to avoid problems with withdrawals? Any experience in this matter amongst biggest exchanges on the market? Would be very thankfull if you can share it.

OP, do you think that a centralized crypto exchange cares about the time you've been holding your crypto? Some exchanges might ask for proof of origin of the crypto funds or other proofs, but this is BS, if you ask me. Why would you want to use a centralized crypto exchange? Staying with decentralized exchanges is your best move. Every centralized crypto exchange is more or less risky, when it comes to withdrawals. If you really want to use a CEX, then maybe you should stick to the big ones: Coinbase and Binance. Coinbase has more positive reviews on Trustpilot, but I wouldn't trust such reviews.

[Z-tight]

Why would you want to use a centralized crypto exchange?

Op already answered this question, op wants to partake in altcoin season if it does come, so they are going to buy and trade altcoins of their choise in their chosen centralized exchange, that is why op wants to use a centralized exchange.

Coinbase has more positive reviews on Trustpilot, but I wouldn't trust such reviews.

Same here, but it is not even about that, both Coinbase and Binance are 'big' exchanges, but like what every user in this thread has said, including you, it does not stop them from confiscating their customers funds and request source of funds.

[Free Market Capitalist]

I guess it's not really paranoia. I don't even think OP is worried. It seems he/she's simply doing basic due diligence or research. He/she doesn't have proof of acquisition anymore since he/she's an early adopter. He/she could indeed encounter related problems along the way. You know exchanges these days.

Considering that many exchanges ask for proof of funds or proof of your source of fund or proof of wealth out of the blue, it's just indeed right to make some inquiries and solicit suggestions and recommendations from those who have the experience.

Yes, in that sense they are not very different from a bank, which requires proof of the (lawful) origin of your funds, or they won't even open the account and may report you.

The case of the OP has appeared many times in the forum, I remember at least a couple of threads in the legal section, where people who have been holding bitcoins for a long time, who have a lawful origin but cannot prove it, find that they now have a large amount of money, millions in fiat terms, of dollars, and suddenly appearing before exchanges, banks and tax authorities with such an amount will set off alarms and risk having them confiscated.

What I would do is, if you don't need a large amount, for example to buy a house, keep spending little by little well P2P, with gift cards or withdrawing cash in bitcoin ATM. If you need to withdraw all or a lot of money consult a specialized lawyer is a must.

[Darker45]

~snip~

Yes, in that sense they are not very different from a bank, which requires proof of the (lawful) origin of your funds, or they won't even open the account and may report you.

The case of the OP has appeared many times in the forum, I remember at least a couple of threads in the legal section, where people who have been holding bitcoins for a long time, who have a lawful origin but cannot prove it, find that they now have a large amount of money, millions in fiat terms, of dollars, and suddenly appearing before exchanges, banks and tax authorities with such an amount will set off alarms and risk having them confiscated.

What I would do is, if you don't need a large amount, for example to buy a house, keep spending little by little well P2P, with gift cards or withdrawing cash in bitcoin ATM. If you need to withdraw all or a lot of money consult a specialized lawyer is a must.

Even here in my locality, this is a bit of a challenge. Withdrawing a million in local fiat isn't easy. A spike in bank transactions would certainly invite suspicious inquiries. And a slip of the tongue mentioning Bitcoin or crypto could have your funds frozen. It could mean the end of your account. 

As for me, I've learned to be patient. Better safe than sorry. If a year is what it takes for me to withdraw a significant amount, I won't mind it. This is where a stablecoin has a great purpose. You won't have to bear Bitcoin's volatility or risk selling low just to hit your target.

[Doan9269]

I haven't been using any CEX since Binance introduced KYC policy. For several years only using DEXes. I am considering to use them again, but wondering what way I can prove I have crypto for long time (don't have any buying proofs as I did it longtime ago when it was available with full privacy and lost access to these transfers history). So what exchanges I can use to avoid problems with withdrawals? Any experience in this matter amongst biggest exchanges on the market? Would be very thankfull if you can share it.

Before you can use one, ensure that you have those that are using them around you, so that they can feed you on what they require, also, you can take your time in going through what they have stated on their ToS  or policy section, but it could be more better if you can continue with the use of the decentralized exchanges you have been used to, because kyc can be a challenging issue with the use of a centralized exchange and they can because of that seize your account, but if your reason for having interest on them are more important than you can make public, then i will advise that you make a thorough search on the ones that can have less issues while using them.