Does your local exchange ask for sender's info for every transaction?

[Rikafip]

Well, my local exchanges still have a rule that they don't ask for KYC for exchanges/transactions below 1k euro, so naturally they don't ask for sender's info as well. Lucky me, but the only question is for how long will that last.

On the other hand, few weeks ago I decided to withdraw remaining few hundreds of dollars worth of crypto that I still had on Binance to my own wallet and after money was sent, suddenly a notification popped out, marking the transaction to my own wallet as suspicious and asking to answer bunch of questions about the said transaction. So yeah, exchanges around the world are getting more and more annoying.

[joniboini]

I noticed this a few months ago. I agree that it's annoying. Hopefully, they don't add this requirement when I'm trying to withdraw to my bank account. If they went as far as that, then P2P is the only option for me. I don't trust my government enough to share my data, especially when they don't have a good track record of keeping individual data safe. Can you imagine filling form just to make a $100 withdrawal when your monthly trading volume doesn't even reach $1k? Money laundering prevention doesn't have to be that intrusive.

[avp2306]

Well, my local exchanges still have a rule that they don't ask for KYC for exchanges/transactions below 1k euro, so naturally they don't ask for sender's info as well. Lucky me, but the only question is for how long will that last.

On the other hand, few weeks ago I decided to withdraw remaining few hundreds of dollars worth of crypto that I still had on Binance to my own wallet and after money was sent, suddenly a notification popped out, marking the transaction to my own wallet as suspicious and asking to answer bunch of questions about the said transaction. So yeah, exchanges around the world are getting more and more annoying.

Well your lucky that your local exchangers didn't ask that since its normal for platform at the moment to ask KYC.

But what I think to much is the same as what has been posted by OP since its like they really want to know more about on the transactions we made. Also what will be worse if it happens that they ask selfie each time we made withdrawals on their platforms.

If that's the case happen I guess I will never use that exchange since for me its risky and don't want to risk since privacy is more important than obeying those controlling platforms.

[Don Pedro Dinero]

Stop overthinking it, guys. What Mitchell said sums it all up.

In Europe we have the Travel Rule regulations. It requires companies to provide your personal information to whatever other company you are sending it to. Same thing that bank to bank transfer do under SWIFT. Notabene has a good write up about what exactly it is: What Is the Crypto Travel Rule?

It is the EU's MiCA law, which basically seeks to equate cryptocurrency transactions with bank transactions. They want to have everything under control. The question now is whether this will become widespread around the world or continue to happen only in Europe. For the sake of everyone, I would like to think that it will not become widespread and that, over time, the EU will have to rethink its policies, but if I am realistic, it seems to me that this is a wish with little chance of becoming reality.

[aioc]

It’s not your information that you’re going to provide, but the information of the sender. If it’s coming from your account in another wallet, you can fill in your name.

No, there is no file upload option, but I don’t want to fill in wrong information, as it could have serious repercussions in the future.

I am a bit confused on that point. Am I not the sender when the deal is going from my account? And you haven't cleared the KYC verification of the platform. Have you already verified your account with them? Then your information is already with them, and they could automatically track your information from their data. I am actually not getting what you mean by 'sender'. Do you mean when you are going to buy Bitcoin, then you need to provide the sender name? If so, then how will you know the real sender name?

If you are the sender, meaning you are selling Bitcoin, then the exchange should already have your information. It doesn't ask for every exchange; they should store your information once it has been provided. I am not familiar with this kind of local exchange in my country. I am used to Binance or Bybit P2P exchange, which is pretty easy.

Okay, let’s break it down to avoid any confusion. You cannot start trading on Coins. Unless you are verified, there are 4 or 5 levels of verification. Now, the topic is all about providing the information whenever you receive coins to your Coins.ph account, if it’s coming from your non-custodial, then you have to provide your own information; if it’s coming from someone, you need to get his/her information so you can fill in the info It’s a requirement.
I also wish that our government would grant Binance a license so we can trade here, as Binance is banned in our country, and we have to trade at our own risk

[khaled0111]

After giving it a second thought, I began to seriously doubt the effectiveness of this measure and I believe it’s just a formality to comply with regulations and legal requirements. Because how could the exchange (coins.ph) verify the accuracy of the information you provided? I doubt they would go as far as asking the sender to verify his identity too (this won’t be possible for all transactions)!
However, I wouldn’t recommend providing fake information especially for large transfers, and as I suggested earlier, you can send the coins to your own non-custodial wallet then send it to the exchange. As they say "better safe than sorry!"

[Darker45]

After giving it a second thought, I began to seriously doubt the effectiveness of this measure and I believe it’s just a formality to comply with regulations and legal requirements. Because how could the exchange (coins.ph) verify the accuracy of the information you provided? I doubt they would go as far as asking the sender to verify his identity too (this won’t be possible for all transactions)!
However, I wouldn’t recommend providing fake information especially for large transfers, and as I suggested earlier, you can send the coins to your own non-custodial wallet then send it to the exchange. As they say "better safe than sorry!"

Indeed, there are information that's beyond the reach of the service to verify. But that's probably not the point. It's probably like the system about police blotters. They're mainly gathering information for record keeping. For a time, they may amount to nothing, but a situation may arise in the future which prompts the authorities to take a look at your history. If you provided fake information, it's going to be your problem. You might suffer for it.

So, yeah, you better be honest. Such should be the mindset when dealing with a third party that has control over your funds and submits data to the authorities. Who knows, years from now, the tax people might one day appear on your doorstep to do some verification on the pieces of information you once provided in the past.

[coupable]

I think yeah he can enter any information, unfortunately the problem arise in the future if the exchange/government find suspicious information.

I would never consider it that simple to deal with such a requirement even there is no asking for proof by uploading docs or similar. All inputs you provide will be recorded and if you continue using the same service you are at risk of them asking you at anytime to confirm thise inputs. It's not less important to provide the correct data if you want to continue using that same service. As for me, i would definitively avoid such a service who ask for private info ir even share it with authorities.

[bhadz]

After giving it a second thought, I began to seriously doubt the effectiveness of this measure and I believe it’s just a formality to comply with regulations and legal requirements. Because how could the exchange (coins.ph) verify the accuracy of the information you provided? I doubt they would go as far as asking the sender to verify his identity too (this won’t be possible for all transactions)!

What I think about this is a simple compliance with our central bank. That's because whichever TXID you enter on it, they'll just accept it even if it's not from the actual TX that you've received. I cannot say if there's someone who actually monitors the TXs there unless they will start to enforce stricter rules about it.

However, I wouldn’t recommend providing fake information especially for large transfers, and as I suggested earlier, you can send the coins to your own non-custodial wallet then send it to the exchange. As they say "better safe than sorry!"

But yes, I won't provide fake information on it because they're now tied up with the government and any info that's sensitive, it's important for them to have it processed and next might be the taxation for each user they have if the government forces it. And what we don't like about them is whenever we're in a surge, they start to have maintenance all of a sudden. And this also happens in other local exchange.