AML/KYC Explained

[akes2090]

Is it imperative for institutions to conduct their own KYC and AML (perhaps in terms of regulations such as SOX, HIPAA, Basel etc) processes or can they outsource it to bureaus which offer such services?

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[sokol2504]

Now this innovation is very difficult, to be honest. And does not cause trust. I try to take part in projects that are completely sure. Of the latter, it is SAFINUS. I did not encounter any problems.

[uncleduckerr]

All KYC and AML does is put tons of innocent peoples information all in one spot so the hackers can find a jackpot of information. It happens over and over and over again with centralized parties and this will not be the one time when that doesn't happen.

[Mike Mayor]

All KYC and AML does is put tons of innocent peoples information all in one spot so the hackers can find a jackpot of information. It happens over and over and over again with centralized parties and this will not be the one time when that doesn't happen.

Precisely. Also even you or I could make an ICO and harvest and sell the info we aquire. They work about $100 each so if you get 1000 people you have $100000.

KYC is against crypto. Noone needs nor wants it.

[canaveralnonie]

For me, KYC is such a time consuming process. As a investor, I want to hide all my information specially if I want to buy a lot of token. I am much confident if they didn't know my identity, cause less info, less hacker resources. But most bitcoiner said, it's a company privacy and rules. That's why I cannot skip those step by step process this past several month.

[zkidkid]

I strongly believe that KYC/AML doesn't help to prevent Money Laundering.
What if they use our private document for other purpose ? How could we be sure that our document will be deleted after they finish reviewing our personal info ?
The key point of Bitcoin & others are to protect user information and it's a joke if we allow them to force people to submit their personal information to buy/sell coins.

[denbike]

So what makes exchanges like Airswap able to avoid doing KYC/AML?

[habibsir]

Anti money laundering (AML) refers to a set of procedures, laws and regulations designed to stop the practice of generating income through illegal actions.Know your customer (KYC) refers to due diligence activities that financial institutions and other regulated companies must perform to ascertain.

[uyenthuy2212]

KYC can indentified someone, it helps to control well. I like the exchange or ICO coin take the KYC

[vrd]

Basic Definition of KYC as the name suggest KNOW YOUR CUSTOMER , its not at all complicated as I have seen some people are making it  its basically knowing  your customer and to know your customer you have to look at his original and authentic documents and verify it by an institution where that person has some area of interest in aspect fo life. its as simple as that.

[Gusk]

Any information can be stolen or sold and then it will get to interested persons who can use it against you. Already, there have been cases when, under torture, their bitcoins were taken from people!

[Zadicar]

All KYC and AML does is put tons of innocent peoples information all in one spot so the hackers can find a jackpot of information. It happens over and over and over again with centralized parties and this will not be the one time when that doesn't happen.

Precisely. Also even you or I could make an ICO and harvest and sell the info we aquire. They work about $100 each so if you get 1000 people you have $100000.

KYC is against crypto. Noone needs nor wants it.

Each information might cost even more than $100 and if those people do tend to sell out those info then it would be an another source of income but a total mess up for those people who do sent their informations online.Im against with this AML/KYC policies which it is totally against crypto but well we do have the free will if we do proceed or not into sending documents.

[fabiorem]

KYC is a complete and outright invasion of privacy and an attack on human rights.

Its not because of showing IDs and passports, this is normal in any bank, and the exchanges would be no different, as they are centralized like any bank. But this issue about taking a selfie with the ID, and in some cases, even a note stating the day and hour the picture was take (as is happening with Binance right now, I had to withdraw my ether from there after I saw it) and they asking you, over and over again, for you to take another photo, and then another, and another, and another, because of "bad resolution" (as most cellphones would have to be professional cameras, used for artistic photography), and all the while, keeping your account locked, and, if you have money stored there, your funds blocked, all of this is a blatant attack on human rights, and is pure, outright centralization, a dictatorship ruled by G7 and its standards they took off from their asses, since they dont consider a lot of people, specially in third world countries, dont have cellphones with professional cameras. I had this issue with CEX.IO some months ago, in 2017, and I never traded with them again. At that time, that exchange was a exception, and a LOT of people were complaining about them. What I see now is this becoming the norm, and people are just complying themselves with it, like it was something normal. It is not, and I'm mad with it.

We need decentralized exchanges now. We need a P2P exchange inside a blockchain, that we can store in our desktops and run nodes for it. Dont you think they will not go after localbitcoins, because they will, and it will be the megaupload of bitcoin. We need a exchange blockchain NOW, this is urgent because Circle bought Poloniex, and Circle belongs to Goldmann Sachs. KYC is just the beginning of a long series of abuses which will force people out of bitcoin. All the while the globalists will create their own centralized cryptocurrency and persuade the merchants to adopt it. We will have 90% volatility in bitcoin prices, due to increasing speculation, and this will put away most of the merchants. At the end, only financial institutions, linked to the stock markets, will be able to trade in the exchanges, which will be highly centralized and controlled by some committee ruled out from the new Poloniex, all under the supervision of the IMF. I'm not spreading FUD. And dont start talking about tether printing to me because derivatives markets sells futures contracts on gold without having gold to cover it.

[optherium]

There are plenty of valid arguments for and against KYC. The bottom line is that this is a regulatory requirement for financial institutions and it's finding its way into digital assets. Businesses that comply with such requirements will have fewer potential problems than those that do not comply. Because of this, platforms that provide KYC solutions will be in high demand.

[Keskitalo77]

Now that I have begun the process of attempting to purchase my first Bitcion, I wonder if there is not a sense of irony in the Bitcoin community about the level of trust the exchanges expect from their customers.I think the real issues that people have with KYC/AML and the exchanges is the unreasonable level of info/trust they expect. I opened a dedicated bank account to route my funds through and their expectations in opening an account did not seem nearly as unreasonable as any exchange I have looked at so far. They didn't ask for things such as where I work, how I plan to use my funds, a picture of myself, passport info etc.

The ridiculous invasion of privacy that the exchanges are engaged in is clearly of their own design. In one reply to this post it is stated that each organization creates its own KYC/AML program, and that is obvious given that the traditional bank asked for less info than than the exchanges. If the bank can comply with these regulations while asking for a minimum of information, so can the exchanges. I am not trying to stay 100% anonymous. I just don't trust any third party with the info the exchanges are asking for. It seems to me the end result of Bitcoin is that third parties are expecting more trust and information than before Bitcoin.

It seems to me that the promise and purpose of Bitcoin is dying or dead...

[steve_rogers]

Hello everyone, I think this is kind of crazy, that each second project request your personal data, including scans of your docs.
The major idea of cryptocurrency inspired me with its anonymous holding and trading. And I don´t like this tendency, hope in next couple of months everything gonna change, cause I don´t wanna find my personal data somewhere in dark net. What do you think guys, how we can insecure us from KYC ?

[freigeist]

Hello everyone, I think this is kind of crazy, that each second project request your personal data, including scans of your docs.
The major idea of cryptocurrency inspired me with its anonymous holding and trading. And I don´t like this tendency, hope in next couple of months everything gonna change, cause I don´t wanna find my personal data somewhere in dark net. What do you think guys, how we can insecure us from KYC ?

The only way to do that is to stop using FIAT money where is not needed.
Stop using bank,  credit/debit card services.
Stop using centralized exchanges (Bittrex, Poloniex etc..) and any other service that asks you for your private personal data.

Decentralized exchanges and other decentralized applications will be the only solution to that problem.

[steve_rogers]

Hello everyone, I think this is kind of crazy, that each second project request your personal data, including scans of your docs.
The major idea of cryptocurrency inspired me with its anonymous holding and trading. And I don´t like this tendency, hope in next couple of months everything gonna change, cause I don´t wanna find my personal data somewhere in dark net. What do you think guys, how we can insecure us from KYC ?

The only way to do that is to stop using FIAT money where is not needed.
Stop using bank,  credit/debit card services.
Stop using centralized exchanges (Bittrex, Poloniex etc..) and any other service that asks you for your private personal data.

Decentralized exchanges and other decentralized applications will be the only solution to that problem.

Yeah, but still the cryptowallets are not strong enough to hold the mayor part of your savings. We cannot pay for regular products with crypto,
and that´s why we should convert our cryptoearnings in FIAT with the help of banks and exchanges. I think we should wait for a little, when we will obtain
the currency with fast transactions, high level of protection, totally anonymous, and the most important thing with high TRUST level from the society, people should be able to buy and sell everything and not be afraid that tomorrow or in one week all their income has been decreased in two times.

But, you are right, that we should try to avoid the resources with KYC as much as possible.

[taichiswag]

KYC shoudn't be compulsory on big exchange like CoinBase, they should allow and add limit to Non-KYC users like Binance has done

[KRAUSS]

Hello everyone, I think this is kind of crazy, that each second project request your personal data, including scans of your docs.
The major idea of cryptocurrency inspired me with its anonymous holding and trading. And I don´t like this tendency, hope in next couple of months everything gonna change, cause I don´t wanna find my personal data somewhere in dark net. What do you think guys, how we can insecure us from KYC ?

The only way to do that is to stop using FIAT money where is not needed.
Stop using bank,  credit/debit card services.
Stop using centralized exchanges (Bittrex, Poloniex etc..) and any other service that asks you for your private personal data.

Decentralized exchanges and other decentralized applications will be the only solution to that problem.

You are right, but people will not do such. Decentralized exchanges are not popular and comfortable in comparison with huge centralized exchanges. It is like FidoNet and Internet ))) ( hope somebody can remember what was actually FidoNet haha)