What happened to all of the anonymity exchanges?

[squatter]

So i have been working with bitcoin since it started, i sold off all my holdings at 6k before the rise to the moon, but recently ive came back to buy some and all of the otc markets are gone, local traders require ID, the big exchanges either dont accept fiat or require your soul and mothers baby pictures.

So can somebody help me understand what happened? did the 2017 bubble kill off the anonymity or am i missing something?

It's been gradually getting worse for the last year or two. The price rise and increasing size of the market had a lot to do with it, I'm sure. FINCEN is watching... a bunch of Localbitcoins traders have been arrested on money laundering related charges. BTC-e, who allowed anonymous trading since 2011, got shut down by the US government and fined $110M for AML violations. Exchanges started either mandating KYC or prohibiting US customers. Localbitcoins started mandating KYC for "significant" trade volumes last April.

I understand the importance of a trust-circle but i am asking solely on the basis of send payment, get bitcoin using WU, cash deposit, Moneypak, etc.. without an in-group. It seems there isnt even a way anymore to find private sellers efficiently, just oceans full of buyers trying to pawn off paypal and itunes giftcards, OTC sellers requiring ID, and corporate exchanges that are even worse than mtgox.

Options are getting slimmer and slimmer. Paxful and Bisq are options, but they're both disappointing in terms of both volume and interface. There are traders on this forum as well -- try the Currency Exchange board.

So what actually caused this? Regulations shouldnt have effected the OTC market IMO.

I guess it's related to money transmission laws that were already on the books.

[iMark]

That's the result of the regulations, the same regulations people here were saying "regulations are great for Bitcoin!"
See the result now. People are considering Bitcoin as an investment so the framework comes with. There are still ways to buy bitcoins as you want but not via the centralized exchanges.

There is nothing can be done when the government force the exchanges to apply kyc for the customers, if the exchanges not following the rules then the site will be blocked, nobody like crypto being regulated but crypto need the permit from government, if the government ban crypto then we can lose the chance to grow

Thats right, that also happened in my country, the government represented by the relevant agencies requested that each exchange require verification of data to the user so that any user activity could be monitored by the government, exchanges could not reject it because they could be blocked by that country

[muslol67]

So i have been working with bitcoin since it started, i sold off all my holdings at 6k before the rise to the moon, but recently ive came back to buy some and all of the otc markets are gone, local traders require ID, the big exchanges either dont accept fiat or require your soul and mothers baby pictures.

So can somebody help me understand what happened? did the 2017 bubble kill off the anonymity or am i missing something? I understand the importance of a trust-circle but i am asking solely on the basis of send payment, get bitcoin using WU, cash deposit, Moneypak, etc.. without an in-group. It seems there isnt even a way anymore to find private sellers efficiently, just oceans full of buyers trying to pawn off paypal and itunes giftcards, OTC sellers requiring ID, and corporate exchanges that are even worse than mtgox.

I dont remember it being this "centralized". Shame.

So what actually caused this? Regulations shouldnt have effected the OTC market IMO.

There are too many decentralized exchange which you can use. For example you can use Binance without KYC and limit for withdrawals only 2BTC.

You can use a lot of exchanges without KYC also.

[killat]

I think that sooner or later most of the exchanges will become centralized, as KYC will be more and more present. Only a few exchanges do not require today KYC, bit honestly, I wouldn't keep important funds on them due to security issues they might face.

[ChangeNOW]

I think that sooner or later most of the exchanges will become centralized, as KYC will be more and more present. Only a few exchanges do not require today KYC, bit honestly, I wouldn't keep important funds on them due to security issues they might face.

Why would you even keep any funds on an exchange? That's bonkers! Seriously, if you're keeping your coins on an exchange, it's best to withdraw them as soon as possible to a wallet you trust. If you can't afford a hardware wallet, storing your keys on an encrypted USB stick would work almost as well. If you need some for spending, just put a small amount on a hot wallet, of which there are many out there.

[shoreno]

I think that sooner or later most of the exchanges will become centralized, as KYC will be more and more present. Only a few exchanges do not require today KYC, bit honestly, I wouldn't keep important funds on them due to security issues they might face.

Why would you even keep any funds on an exchange? That's bonkers! Seriously, if you're keeping your coins on an exchange, it's best to withdraw them as soon as possible to a wallet you trust. If you can't afford a hardware wallet, storing your keys on an encrypted USB stick would work almost as well. If you need some for spending, just put a small amount on a hot wallet, of which there are many out there.

Why would you even keep any funds on an exchange?

simply because he is an active trader . its a nice idea if you already deposited your funds on an exchange because you can buy and sell coins instanly whenever theres the oppurtunity strikes .

Seriously, if you're keeping your coins on an exchange, it's best to withdraw them as soon as possible to a wallet you trust.

why would you even store and keep them  if you will imediately withdrew them  ?  makes no sense  . and do you think storing your coins on an online wallet is safe  ?  hell no  .  thats the same as storing your funds in an exchange but i think exchange had a higer security than crypto wallets  .

exchanges arent anonymous at all because they can record all your transactions and other important infos  . its not really an issue tho  ...

[Autumn_Rain]

Fortunately or unfortunately the exchanges are now pressured to comply with all the laws and requirements on KYC and AML policy.

[Linkkoin]

I think that sooner or later most of the exchanges will become centralized, as KYC will be more and more present. Only a few exchanges do not require today KYC, bit honestly, I wouldn't keep important funds on them due to security issues they might face.

Why would you even keep any funds on an exchange? That's bonkers! Seriously, if you're keeping your coins on an exchange, it's best to withdraw them as soon as possible to a wallet you trust. If you can't afford a hardware wallet, storing your keys on an encrypted USB stick would work almost as well. If you need some for spending, just put a small amount on a hot wallet, of which there are many out there.

That's what cryptocurrency exchanges recommend to do.
And full KYC is already required for cryptocurrency exchanges which allow, just like Linkkoin, to buy cryptos with Visa/Mastercard. This is a requirement imposed upon us.

[Halmater]

The process in the market is getting harder and this may disturb some people, but these practices increase the confidence in crypto market. This is something that must be done, I think.

[drumamat]

So i have been working with bitcoin since it started, i sold off all my holdings at 6k before the rise to the moon, but recently ive came back to buy some and all of the otc markets are gone, local traders require ID, the big exchanges either dont accept fiat or require your soul and mothers baby pictures.

So can somebody help me understand what happened? did the 2017 bubble kill off the anonymity or am i missing something? I understand the importance of a trust-circle but i am asking solely on the basis of send payment, get bitcoin using WU, cash deposit, Moneypak, etc.. without an in-group. It seems there isnt even a way anymore to find private sellers efficiently, just oceans full of buyers trying to pawn off paypal and itunes giftcards, OTC sellers requiring ID, and corporate exchanges that are even worse than mtgox.

I dont remember it being this "centralized". Shame.

So what actually caused this? Regulations shouldnt have effected the OTC market IMO.

what did you expect?
the banking cartels will be losing profit and Central Banks will be losing control
if people are allowed to trade currencies anonymously
there will be all kind of excuses , sponsoring terrorism, crime, money laundering and what not
in reality it is all about your anonymity and privacy
and money

I agree. Alas, at the moment, the black segment of the use of cryptocurrencies is very large.To the situation with transactions has not passed into the stage of uncontrolled chaos exchanges just need proof of identity.Note, however, that on most stock exchanges, if the amount of your withdrawal is small, then, as a rule, the exchanges do not require identification.Hence the conclusion that the exchanges insure themselves. And in principle there is nothing wrong with that.

[Denton]

Yes, now increasingly require that exchanges verify to ensure that you could brings a certain amount. If you are not satisfied with this, you can use a variety of anonymous exchanges. The choice is yours.

[BurgerCash]

BISQ might be your best bet.
I hope a lot more atomic-swap-based exchanges will pop up soon and people would move to them.
Because with centralized exchanges you have 2 options:
1. Legal, aka more secure -> 100% it needs KYC
2. Shady, very likely to exit scam -> then it might not need KYC
And we all know you prefer option 1