Should I trust no-kyc promise of basefex?

[RodneyKings]

I recently ran across a piece of news somewhere about the exchange and what caught my eyes is the promise they will never require KYC. I looked into it and found they publicly announced about it plus they don't have withdrawal limits.
KYC is really something that makes me feel uncomfortable that's why I don't even think about deribit.
I know it's the volume is nothing comparable to deribit or bybit but I really long for an exchange that will never force me to act like a prisoner. I was once briefly trading there but never deposited much.
Thoughts?

[BitMaxz]

It seems legit some tested it from one of the trusted members here on the forum.

Take a look at this thread: BaseFEX - SCAM - Plagiarism site + Anonymous Team

Honestly, I never heard this before so I don't trust to deal a big amount on this exchange.

You can also read their official thread from here: [ANN] BaseFEX - Crypto Derivatives Exchange You Can Trust
You can decide if you can trust their service or not.

However, If you are looking for no KYC exchange try hotbit which is one of the well-known exchange that doesn't need KYC.

[exstasie]

Wow, they actually have a page called "No KYC Promise."

https://www.basefex.com/docs/no-kyc-promise

We promise there will never be KYC/AML checks.

As believers of cryptocurrency and its anonymity spirit, we respect our users’ privacy and will never require KYC/AML check from our users. Users can use all of our services with just an email address.

Stating outright that they simply don't do AML doesn't seem too smart. Most countries have laws that call for a risk-based AML process for money transmitters.

This isn't quite as bad but it reminds me of Bestmixer advertising themselves as a money laundering service.

It seems legit some tested it from one of the trusted members here on the forum.

Take a look at this thread: BaseFEX - SCAM - Plagiarism site + Anonymous Team

Honestly, I never heard this before so I don't trust to deal a big amount on this exchange.

In addition to the plagiarism and anonymous/unknown owners, there was an embarrassing case where BaseFEX's volume faking method was being exploited by a trader. They stole the trader's profits back which resulted in a scam accusation: https://bitcointalk.org/index.php?topic=5160738.msg52271812#msg52271812

[Harriti]

I recently ran across a piece of news somewhere about the exchange and what caught my eyes is the promise they will never require KYC. I looked into it and found they publicly announced about it plus they don't have withdrawal limits.
KYC is really something that makes me feel uncomfortable that's why I don't even think about deribit.
I know it's the volume is nothing comparable to deribit or bybit but I really long for an exchange that will never force me to act like a prisoner.
Thoughts?

With such exchanges, you should not trade. withdraw no limits without KYC? It's too strange compared to how other exchages work. because when you withdraw too much money, exchange will require you to have KYC to verify that you are not a money launderer and when you have a problem, they can solve it for you more easily. So if you depot a lot of money in it, when they justify not wanting to pay so you can withdraw a lot of money then you have no other way to accuse them of being a scam. So stay away from these types of exchanges, it's not reputable.

[TheUltraElite]

I recently ran across a piece of news somewhere about the exchange and what caught my eyes is the promise they will never require KYC. I looked into it and found they publicly announced about it plus they don't have withdrawal limits.

First you would have to decide whether to keep using deribit or move to another site. If KYC haunts you then this might seen a good option to now. Now also note that the legitimacy of the site is also not guaranteed, you have to decide on that.

Again today they are saying that they would never go for KYC, but tomorrow or after a few years when people have forgotten about past events they will suddenly impose KYC and force users. Nobody will remember the news or even if they do and call scam, the owners will be least bothered since they have already grown a userbase and are not forcing KYC. It will be like a "Take it or leave it" scenario - know what I mean?

In short, just like you as a user are haunted by KYC, these exchanges are haunted by authorities who attempt to monitor them. Hence one fine day they have to crack down to their extortion and give out the KYC info to the authorities. Its the sad reality.

[Dyn@styN3rd]

I understand why people prefer non-KYC exchanges. They don't want to be identified in any way, but it is still necessary for security measures.

[khaled0111]

Many exchanges gave the same promise but after few months from launching when the trading volume increases they start asking for KYC.
Their excuse is always that they have to comply with the legislations of the country they are operating from.
I would believe them if they didn't say that there will be no withdrawal limits.

[figmentofmyass]

Many exchanges gave the same promise but after few months from launching when the trading volume increases they start asking for KYC.

this is different. other exchanges offer(ed) unverified accounts but they always maintain that they have an AML/KYC system in place---things like FINCEN registration, suspicious activity reporting, taint analysis, etc.

in other words, other exchanges always at least pretend to implement AML procedures according to the various laws where they operate. basefex is explicitly saying they don't follow any of those laws and never will. it's a big FU to regulators.

[Bttzed03]

I wouldn't trust the no kyc promise. Similar to what others have said, it's a marketing strategy to attract traders like you who hates KYC. If you plan to switch to basefex, then do it early before regulators starts hunting them down.

[1Referee]

I understand why people prefer non-KYC exchanges. They don't want to be identified in any way, but it is still necessary for security measures.

What makes a kyc exchange more secure than one that doesn't have kyc requirements? In fact, it makes you even more vulnerable because not only your coins can get stolen from the exchange, but also your personal information. I hope you didn't forget about the Binance scandal where thousands of ID's, address info, etc that were (still are) floating around on the net.

Who knows how many more exchanges (or the desks they outsource kyc to) have had their system's breached. We may not find about it as long as exchanges are willing to pay up for not having the hackers publish the data.

[SusantS]

I understand why people prefer non-KYC exchanges. They don't want to be identified in any way, but it is still necessary for security measures.

I think people have lost confidence in KYC because the information was sold by different people and advertising and the like targeted them. That's the way the world could be.

[The Sceptical Chymist]

It seems legit some tested it from one of the trusted members here on the forum.

That doesn't mean anything for the long-term, though.  We've all seen exchanges that started out life legitimate and then ended up pulling an exit scam, usually in the form of "we got hacked!". 

I'd be suspicious of any exchange that promises that they'll never require KYC, because that's not a promise any of them can really make right now.  I'm sure Coinbase, Bittrex, Kraken, and all the other exchanges that require it would love it if they didn't have to because then they'd be able to attract more customers.  The fact is that they have to abide by KYC regulations in order to be compliant with the regulations of the countries in which they operate. 

Unregulated exchanges are sketchy at best, and that's unfortunate but true.  I'd be careful with this basefex one if I were you, OP.  At the very least, withdraw your coins whenever you're done with your trading for the day.

[tracey77]

There are no guarantees that they won't introduce KYC. There is no exchange platform which can provide you such assurance that no-matter-what they won't do it, they have to  adjust to certain regulations and KYC procedure is becoming pretty much standard right now. That's the reason why I wouldn't trust them in long-term. When something happens, like for example, if they'll grow enough to be noticed by legal authorities and they'll be forced to introduce KYC procedures, what will they do? Shutdown or require KYC. Both options aren't proper for you.

[harizen]

I know it's the volume is nothing comparable to deribit or bybit but I really long for an exchange that will never force me to act like a prisoner.

In other words, you are fine undergoing KYC but in a smooth way and not to the point that they will force you to give everything. Then consider using other exchanges with a smooth process of KYC verification.

There is no assurance that the platform you have mention can maintain their no-KYC policy "forever". Remember that even big or small volume exchange today implemented KYC. Even the majority of the exchanges don't want to implement KYC, how can they operate freely if they are under pressure by the authorities?

But why should we play on small exchanges just for their no-KYC feature if we can play the game on much reputable exchange where can I say that we can risk undergoing KYC? I know we have issues about identity theft but top exchanges can't operate legally without these. We do hate KYC, even I, but today there is nothing we can do about it or just stick with the idea of using decentralized exchange.

[squatter]

I'd rather use a platform that says they can require AML/KYC at their discretion -- but in practice, doesn't. This is what BitMEX says in their terms:

HDR reserves the right at any time to verify your identity for the purposes of complying with the Seychelles’ Anti-Money Laundering Act 2006 or any other Applicable Law.

That seems much more legally defensible than what BaseFEX is doing.