Why Do Cryptocurrency Exchanges Want So Much Information?

[GunXpatriot]

I've been mining a few coins for a while, including BTC, but I'm ready to actually buy some altcoins on an exchange, 'cause the price is right. I'm looking at Cryptsy, and to be honest, I'm a little reluctant to give my personal information to the site. It all seems legit, and I know many have done it before, but what is the purpose of needing things like photo ID and whatnot? Is that a US thing, or does pretty much every exchange want that information? And if they do... Why?

I believe for higher verification, some even want a Social Security Number? Why is that? Does anyone have more information regarding why they would collect that information? I don't necessarily doubt the honesty of Crypsy or any other big exchanges. But at the same time, I'm not going to run and give them information that they shouldn't have.

Thanks for any information you guys can give me.

[Bit_Happy]

(Much more than in 2011/2012) Most exchanges have to conform to financial industry standards (i.e. "Know Your Customer"), or else they will not be allowed to exist for very long.

[chopstick]

Well chances are you might be a terrorist or a dirty money launderer so financial "institutions" such as centralized exchanges are required to collect all your info including blood samples to stay in business otherwise the fine operators themselves might be thrown in jail for "money laundering".

That about sums it up.

Do not question your lovely post- 9/11 laws, citizen.

[GunXpatriot]

My deepest apologies, mein Fuhrer! I was out of line!

 

[smoothie]

Simple: FinCEN is throwing all of the virtual currency exchanges through the ringer by making jump through HOOPs and in turn they make their customers jump through many hoops as well just to be a "verified" user.

I think it is sad that the financial system is setup to check out the little guys with magnifying glasses but the big corporations get a free pass or a slap on the wrist when breaking the laws.

[SargeR33]

Its to prevent dodgy shit. Any service which is used to handle money will ask for ID.

I don't like it though. I don't intend to do anything dodgy but I don't trust some website with all that vital information I send. Some want bills, drivers license and photos of your face. Its insane. If this information got into the wrong hands, it could potentially destroy you.

[scientific]

I've been mining a few coins for a while, including BTC, but I'm ready to actually buy some altcoins on an exchange, 'cause the price is right. I'm looking at Cryptsy, and to be honest, I'm a little reluctant to give my personal information to the site. It all seems legit, and I know many have done it before, but what is the purpose of needing things like photo ID and whatnot? Is that a US thing, or does pretty much every exchange want that information? And if they do... Why?

I believe for higher verification, some even want a Social Security Number? Why is that? Does anyone have more information regarding why they would collect that information? I don't necessarily doubt the honesty of Crypsy or any other big exchanges. But at the same time, I'm not going to run and give them information that they shouldn't have.

Thanks for any information you guys can give me.

Many exchanges don't need any of those information for buying/selling altcoins, so you should be fine. Those requirements are mainly for fiat transactions.

[GunXpatriot]

I've been mining a few coins for a while, including BTC, but I'm ready to actually buy some altcoins on an exchange, 'cause the price is right. I'm looking at Cryptsy, and to be honest, I'm a little reluctant to give my personal information to the site. It all seems legit, and I know many have done it before, but what is the purpose of needing things like photo ID and whatnot? Is that a US thing, or does pretty much every exchange want that information? And if they do... Why?

I believe for higher verification, some even want a Social Security Number? Why is that? Does anyone have more information regarding why they would collect that information? I don't necessarily doubt the honesty of Crypsy or any other big exchanges. But at the same time, I'm not going to run and give them information that they shouldn't have.

Thanks for any information you guys can give me.

Many exchanges don't need any of those information for buying/selling altcoins, so you should be fine. Those requirements are mainly for fiat transactions.

Ha yeah, that was the problem. I'm holding the coins I'm mining because they're promising, so I'm not switch mining for a USD profit, or anything like that.

Sarge, same, I'm a legit dude. "If you don't have anything to hide, then what's the problem?" has always sounded like BS to me. You're guilty until proven innocent, or whatever. Not that they would even know what you did either way (depending on the circumstance), so whatever... These things are probably a product of things like Silk Road, and The Armory, which I heard was a giant sting operation anyway, but I didn't keep up with that stuff too closely. Honestly, I didn't care much.

And to smoothie, yeah, it's total bull. This peasant tried to rise a rank!? Destroy him!

[Sinecoin]

I've been mining a few coins for a while, including BTC, but I'm ready to actually buy some altcoins on an exchange, 'cause the price is right. I'm looking at Cryptsy, and to be honest, I'm a little reluctant to give my personal information to the site. It all seems legit, and I know many have done it before, but what is the purpose of needing things like photo ID and whatnot? Is that a US thing, or does pretty much every exchange want that information? And if they do... Why?

I believe for higher verification, some even want a Social Security Number? Why is that? Does anyone have more information regarding why they would collect that information? I don't necessarily doubt the honesty of Crypsy or any other big exchanges. But at the same time, I'm not going to run and give them information that they shouldn't have.

Thanks for any information you guys can give me.

Mainly to conform with the laws of the countries theyr offering their service in, which usually makes it harder for criminals to launder their money.

[Nrcewker]

in case of inside job 

[GunXpatriot]

I'm assuming Cryptsy is based in the U.S.?

I remember looking at Vault of Satoshi, which appears to be Canada-based. They wanted quite bit. Like confirming a bank account, or a letter from your bank, or something. Granted, Cryptsy could get any of that with your I.D. but Vault of Satoshi wanted all of it just to get started!

Are there any other less invasive options? I don't mind going with Cryptsy, and they have a vast selection of currencies... So I'd need a similar selection, but with less invasive account confirmation.

[SargeR33]

You can always dump some BTC into Cryptsy and trade btc for other alts. Without a verified account, I don't think you can do anything relating to fiat there.

Another option is to buy some BTC from say localbitcoins and dump that purchase into Cryptsy and do your trading.

[GÜNther.Danish]

just few exchange need so much info to verification, like bitstamp, major exchange not, you can enjoy trading only with a simple authentication, lakebtc is so.