Know Your Customer

[Dread Pirate Roberts]

Normally every business that is in cooperation with their finances is reasonable to do KYC. but KYC in the world of crypto I think it's quite new. because KYC has damaged the nature of the crypto itself. which is "anonymous transaction" but if the exchange has KYC rules and we want to be with him. just do it because maybe it's their obvious financial interest to avoid fraud and theft.

[1715081894]

1715081894

[BartS]

I don't have a personal problem with the KYC procedure but in the same time i ask my self what kind of measures do they acssualy take to protect the confidential info's from the hackers or any other criminal activity? I agree that we should know  where the money goes but we need protection to.

You should have a personal problem with know your customer policies, one of the strongest points of cryptocurrencies is the fact that you do not need to identify yourself to have a wallet or to send money around the world, governments are trying to suppress the anonymity that you were getting out of cryptocurrencies by forcing exchanges to apply those policies, they are trying to make it seem as if they are trying to protect the public but that is not the case they only care about themselves and about the possible consequences and effects that bitcoin could have in the economy the world.

[cahbagus555]

You know everything is reported to the government if the amount is big enough, it's very hard for a person to keep his identity hidden because every bank transaction is taken care of , and linked to your account.

There are people with black money who keeps it hidden and this is important to discover that the money is not black and someone isn't running from taxes.

Large amounts are reported by the banks, yes. It's the law. But do you think exchanges report say somebody sending $4,000 worth of a coin to their wallet, one time???

If i'm not make mistke, in exchange if we want to withdrawal over their limit like level 2 (usually over 5btc) they need our identity and selfie photo with our ID. But if we deposit, not matter over 5btc they dont needed.
But I think KYC already common right now even on ICO because its regulation by government

KYC because following government regulation. I think its good doing KYC because crytpocommunity can avoid abuse cryptocurrency doing illegal activity. Its always said that cryto always used for illegal activity and its not true because its depending on user

[neonshium]

I don't have a personal problem with the KYC procedure but in the same time i ask my self what kind of measures do they acssualy take to protect the confidential info's from the hackers or any other criminal activity? I agree that we should know  where the money goes but we need protection to.

You should have a personal problem with know your customer policies, one of the strongest points of cryptocurrencies is the fact that you do not need to identify yourself to have a wallet or to send money around the world, governments are trying to suppress the anonymity that you were getting out of cryptocurrencies by forcing exchanges to apply those policies, they are trying to make it seem as if they are trying to protect the public but that is not the case they only care about themselves and about the possible consequences and effects that bitcoin could have in the economy the world.

Know your customer is the key of success. If you do not know the needs of your customer you will never be a good and successful businessman. Customers are everything for suppliers because all the productions are for sale and for sale you should keep yourself touch with your customers. Then you would be able to improve your business and will be a good entrepreneur.

[stellgod]

You know everything is reported to the government if the amount is big enough, it's very hard for a person to keep his identity hidden because every bank transaction is taken care of , and linked to your account.

There are people with black money who keeps it hidden and this is important to discover that the money is not black and someone isn't running from taxes.

Large amounts are reported by the banks, yes. It's the law. But do you think exchanges report say somebody sending $4,000 worth of a coin to their wallet, one time???

If i'm not make mistke, in exchange if we want to withdrawal over their limit like level 2 (usually over 5btc) they need our identity and selfie photo with our ID. But if we deposit, not matter over 5btc they dont needed.
But I think KYC already common right now even on ICO because its regulation by government

KYC because following government regulation. I think its good doing KYC because crytpocommunity can avoid abuse cryptocurrency doing illegal activity. Its always said that cryto always used for illegal activity and its not true because its depending on user

Yeah I also not agree with this, but we should also realize that some people are using crypto for illegal activities. Investment in crypto is the easiest way to hide black money and they will never be caught because cryptocurrency are decentralized and the government has nothing to do with it. Therefore it is the safest way to keep black money.

[Dudeperfect]

If anyone is sharing his KYC details then he should not expect that governments won't get any information about his investment in that particular exchange. In order to carry the operations smoothly, even Mark Zuckerberg have to satisfy government and when it comes to crypto companies, things are even complicated and as we all know that governments are not a fan of crypto so they will anyhow try to monitor and regulate this stuff.

[adzino]

I don't have a personal problem with the KYC procedure but in the same time i ask my self what kind of measures do they acssualy take to protect the confidential info's from the hackers or any other criminal activity? I agree that we should know  where the money goes but we need protection to.

You should have problem since KYC collects all your personal information, thus losing your anonymity and the coins somewhat losing a part of its decentralization. All your financial transactions will be tracked and you will have to pay your taxes from the capital gains. Why do we have to pay the government for something they have no interest on or has no control over?

[AbyssLagiaz]

Not really that way. It doesn't respect the privacy of the participators on how much do they want to invest. Will the establishment take advantage of the participator who just invested a bulk amount? Know Your Customer, at least in my area, aims to verify that the receiver or the sender is really cleared out of any bad records like for example that your license could be confiscated when you made an offense to the law disallowing you to make any transaction that could lead into any shady things. I don't think government would really watch where the money led into, but rather verify the transaction parties out there.

[eternalgloom]

I don't have a personal problem with the KYC procedure but in the same time i ask my self what kind of measures do they acssualy take to protect the confidential info's from the hackers or any other criminal activity? I agree that we should know  where the money goes but we need protection to.

You should have problem since KYC collects all your personal information, thus losing your anonymity and the coins somewhat losing a part of its decentralization. All your financial transactions will be tracked and you will have to pay your taxes from the capital gains. Why do we have to pay the government for something they have no interest on or has no control over?

I don't fully agree with your statement. I think it's fair that a certain part of your income gets taxed by the government. I mean, the government also provides us with public services, which are paid for by our taxes.
Treating cryptocurrency as assets seems like the most fair way to get taxes from them. Meaning, you only pay taxes when you convert crypto to fiat.

The problem I do have with KYC is that your data is potentially being handled insecurely. Imagine if the entire database of ID-copies is hacked and you become a victim of identity theft...
I doubt that every exchange has impenetrable security, we've seen enough exchanges get hacked in the past.

[GamblingPurveyor]

I understand the need to control what happens on the financial market and the need to respect the law, but I think that it's really dangerous to give your full data and a copy of your passport to an unknown entity.
Think about what can do with them. Am not a supporter of kyc especially when it comes to the case of ico.

[waichi]

If the exchange is being taxed by the government, then all of the money transfers are being reported to the government. The purpose of KYC is to avoid money laundering. We all know money laundering is prohibited by law.

[rommelo24]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

I think they are requiring KYC for investors with certain amount of money is for them to monitor their clients and prevent money laundering act. I remember a certain ICO that requires KYC for investors with $10K and above investment because they said that their lawyers advise them to.

[bettercrypto]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

It is not the real purpose of KYC. We passed our identity because there are certain circumstances that the ICO we have participated to verify. Like our residency, some ICO needs to verify that their investors are not citizen where their project prohibited. If you don't have nothing wrong to do, you will not fear to pass it and if you don't want to pass your identity then do not join in ICO who required KYC.

[Martinkuhn]

While KYC's main purpose is to ensure that the ICO team do not issue token to people in jurisdiction that are not supposed to take part in their ICO, and to also make sure that they are aware of exactly who is buying into the ICO (so that the ICO can adhere to govt rules and be able to do business in the jurisdiction they are in), one of the other good purpose of KYC is also to be a AML measure too.

[sebuh lemaratos]

I don’t think we should even worry about such things when it comes to Bitcoin and all these ICO stuffs, cause Bitcoin is all about privacy. Such things are only required when it comes to bank and other offline activities that mostly has to do with money.

I do not know, I'm also disappointed ico who uses kyc, but I joined here because I think crypto strongly supports privacy secrets, but I can not do anything

[waqasniaz007]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

Many of investors invested more than $10k in single ico and they did not get reported, Kyc documents are only for security purpose. Many investors invested huge amount, Still we do not know is it save to give personal data to these ico, ICOs should give security of our documents.

[BartS]

I don’t think we should even worry about such things when it comes to Bitcoin and all these ICO stuffs, cause Bitcoin is all about privacy. Such things are only required when it comes to bank and other offline activities that mostly has to do with money.

You should get worried about it, because in my opinion this is just beginning it is very possible that in the future governments approve laws in which it is required to identify yourself every time you make a transaction in a blockchain and if merchants begin to cooperate with the authorities then is possible that bitcoin could get adopted worldwide but we will lose any kind of anonymity while we are using it, in my opinion that it will be a very hollow victory for bitcoin, if we want to change the way the world works bitcoin needs to remain as it this and not to become another arm of the government.

[jak3]

I do not think that they can hide from banks but as we have already seen many ico campaigns run with a digital cryptocurrency so in that sense, there is some layer of security but in the end, they cannot hide from the government. They do not have a fully automated system like Bitcoin and even if they have then they will have the same problems like Bitcoin so to minimize those problems we see some new problems in the market that is banks.

[astrid.uchiha24]

I understand the need to control what happens on the financial market and the need to respect the law, but I think that it's really dangerous to give your full data and a copy of your passport to an unknown entity.
Think about what can do with them. Am not a supporter of kyc especially when it comes to the case of ico.

if you don't want this kind of law/regulation just avoid or keep yourself away on it. to be honest we can't do anything about that since government can impose punishment for those people who dont follow the rules and regulation so if you don't want to disclose any information to unknow entity just avoid it

[richardsNY]

You should get worried about it, because in my opinion this is just beginning it is very possible that in the future governments approve laws in which it is required to identify yourself every time you make a transaction in a blockchain and if merchants begin to cooperate with the authorities then is possible that bitcoin could get adopted worldwide but we will lose any kind of anonymity while we are using it, in my opinion that it will be a very hollow victory for bitcoin, if we want to change the way the world works bitcoin needs to remain as it this and not to become another arm of the government.

Valid concern for sure. In current times with regulations becoming more and more a normal thing, the centralization aspect fiercely starts overruling everything we care about. Bitcoin becoming mainstream has definitely two sides to it, where the price keeps increasing as result of that, which everyone rightfully considers to be a positive development, but we also more and more lose grip of what we do and how we operate. It's impossible to achieve something without sacrificing anything. No pain no gain they say, and I agree with that. Good thing however is that if we so wish, we can still avoid dealing with the regulations the centralized ecosystem is subject to. If we at some point manage to create local crypto economies within each country, we don't have to deal with fiat, and thus don't have to deal with a large part of the regulations. It needs a mindset change globally, but it isn't impossible.