AML/KYC Explained

[AlaBy]

Oh no one protects KYC. This kind of monopoly. How can I trust my identity to an unknown person?

[1714577047]

1714577047

[hv_]

Oh no one protects KYC. This kind of monopoly. How can I trust my identity to an unknown person?

Oh - if you go totally dark, nobody can and will protect you. Only big criminal fishes want such and will Profit most of.

If entire money paths would be tracable. many crime and corruption was not possible.

Bitcoin can do that, small clean fishes should vote for IMHO

[p2pclub]

Nowadays, there are people think that there should be a better way to verify user not KYC. KYC some how made it complicated for user.
How do you guys think?

[cryptomarka]

Oh no one protects KYC. This kind of monopoly. How can I trust my identity to an unknown person?

Oh - if you go totally dark, nobody can and will protect you. Only big criminal fishes want such and will Profit most of.

If entire money paths would be tracable. many crime and corruption was not possible.

Bitcoin can do that, small clean fishes should vote for IMHO

But who will protect me if my data will be stollen and come to the hackers. There are a lot of cases when hackers steal the data.

[hv_]

Oh no one protects KYC. This kind of monopoly. How can I trust my identity to an unknown person?

Oh - if you go totally dark, nobody can and will protect you. Only big criminal fishes want such and will Profit most of.

If entire money paths would be tracable. many crime and corruption was not possible.

Bitcoin can do that, small clean fishes should vote for IMHO

But who will protect me if my data will be stollen and come to the hackers. There are a lot of cases when hackers steal the data.

Sure - in the old world where u don't reall own ur data  that is an issue

New world is ID / kyc via blockchain / token application like twohop / Pixel wallet tries to do together with Refinitiv KYC solution

Here u own ur data and only send out things / sign for check P2P and ur Provider does not need to store it (like showing ur passport visually)

[its-a-me-mario]

Nowadays, there are people think that there should be a better way to verify user not KYC. KYC some how made it complicated for user.
How do you guys think?

There are some pretty damn cool digital identity solutions out there right now using blockchain to let you verify your identity w/PI documents (passport, birth certificate, etc) without having to actually let another company store your documents on their servers. They're all stored encrypted so you don't have to worry about anyone being able to access them unless you grant them access. I was at CIS LA a month ago and saw a couple companies pitch their ideas to the city of Los Angeles and the city's representatives were pretty receptive to it. I look forward to where these types of solutions go in the next decade.

[Dyn@styN3rd]

I think KYC and AML is totally against the spirit of cryptocurrency and blockchain. I mean, all our community as about being anonymous and decentralized. And KYC & AML are killing it, imho. I cherish the exchanges, that don’t require them and actually stand for anonymity. Like Basefex, I recently found about them and their pledge looks kinda promising. Gonna look after them from now on.

[star7dust]

Thank you for the article. KYC can be tough. Of course sometimes it's necessary for security etc etc... but then what is the sense of cryptocurrency? Crypto means underground... That makes me think if there still are services that don't use KYC. I know the exchange Cripto intercambio doesn't use it for example, but I'd want to learn about bigger and more known services

[letsfly]

Thank you for the article. KYC can be tough. Of course sometimes it's necessary for security etc etc... but then what is the sense of cryptocurrency? Crypto means underground... That makes me think if there still are services that don't use KYC. I know the exchange Cripto intercambio doesn't use it for example, but I'd want to learn about bigger and more known services

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.

[Linkkoin]

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.

But on the other hand, a company in the crypto industry right now without having a proper KYC will often not be able to accept any sort of payment, as banks/card providers would refuse to provide services to them.

[dewin]

But on the other hand, a company in the crypto industry right now without having a proper KYC will often not be able to accept any sort of payment, as banks/card providers would refuse to provide services to them.

Especially in US, but even right now AML5 is making huge difference in Europe too by forcing every member country to implement it (and still some of them aren't ready for January 2020 - i've read somewhere an article about many UK companies which aren't ready and even though they are leaving EU, it's still in force for them i think). Cryptocurrencies are going to be more regulated than ever and those changes aren't made for you guys, because you already know how to protect yourself, you are vets. It's for the newcomers, for the people who will join cryptocommunity very soon, with projects like Libra which are going to adapt it more than ever. The funny thing is that if we look at the "stealing crypto" problem from the global perspective, we'll see that it's really difficult to introduce other solution on this scale different from forcing everyone to register themselves and look at their hands 24/7. Furthermore, the market is heavily fragmented and there are various different standards across the world, even around the European Union. There is a huge demand for AML services and this trend will continue to grow vastly. Other thing is how cryptocurrencies has changed the crime sector as a whole - money laundnering for the last couple years has never been easier and it's time to do something more. However, it becomes really serious topic and many associations wants to fight. There are special methods and companies who deal with such issue. For instance Coinfirm, which is a partner with Binance, is analyzing cryptocurrency transactions to see if they went through the mixers and rate their risk level for AML compliance reasons. They just released their new Standard AML Risk Reports, you can see a sample of hack-related transaction on their blog, it's worth to know how such reports looks like. Hope next year will bring a lot of changes, especially now when there is a huge demand for AML services and this trend will continue to grow vastly.

[Docent85]

If someone do not want make KYC process, just registerind in the exchatnes without KYC and all!

[kotik085]

There has never been a question about the providence of the KYC procedure. Many sites accept my data without any problems. Especially when using Airdrop.

[Asmonist]

These two are really an integral part of financial institution and all other financial base platforms. We all need to input our information for security purposes and on the part of the institution who accepts financial transactions. In the case of bitcoin and cryptocurrency who had been somehow a private platform may somehow cannot fully adopt these regulations since by nature it decentralized and noone is really controlling it. In the future these maybe use as part of the process but most likely not the whole idea of it.

[CodyAlfaridzi]

actually I am still not very sure of the security of our data when doing KYC, who can guarantee if our data is not used for things we don't want?

Nobody. That's why you should only perform KYC if you trust the other party. This is still a risk though because even if the company never intended to use your data for malicious purposes, some bad hackers might breach their data anyway. Even a big company with the best tech talents like Facebook still prone to data breach. So forget KYC for ICO/IEO. You're stupid for sending sensitive, personal data to shady "developers" team on the internet.

[si14bet]

actually I am still not very sure of the security of our data when doing KYC, who can guarantee if our data is not used for things we don't want?

I think that often those projects that host KYC are still correct in their business and thanks to this confirm the identity of everyone.

[royalfestus]

I think KYC and AML is totally against the spirit of cryptocurrency and blockchain. I mean, all our community as about being anonymous and decentralized. And KYC & AML are killing it, imho. I cherish the exchanges, that don’t require them and actually stand for anonymity. Like Basefex, I recently found about them and their pledge looks kinda promising. Gonna look after them from now on.

The regulation does not protect everyone in the space as it ought to, the organization that took it upon itself to collect date recently should be scrutinized very well. No one can be trusted even the Government with personal data, we have bridge with personal interest even by the president of United state but there is nothing we can do about it now. Decline in decentralized exchanges, exchanges closing unverified accounts and ICO requesting for KYC

[Butwhytho]

But on the other hand, a company in the crypto industry right now without having a proper KYC will often not be able to accept any sort of payment, as banks/card providers would refuse to provide services to them.

Especially in US, but even right now AML5 is making huge difference in Europe too by forcing every member country to implement it (and still some of them aren't ready for January 2020 - i've read somewhere an article about many UK companies which aren't ready and even though they are leaving EU, it's still in force for them i think). Cryptocurrencies are going to be more regulated than ever and those changes aren't made for you guys, because you already know how to protect yourself, you are vets. It's for the newcomers, for the people who will join cryptocommunity very soon, with projects like Libra which are going to adapt it more than ever. The funny thing is that if we look at the "stealing crypto" problem from the global perspective, we'll see that it's really difficult to introduce other solution on this scale different from forcing everyone to register themselves and look at their hands 24/7. Furthermore, the market is heavily fragmented and there are various different standards across the world, even around the European Union. There is a huge demand for AML services and this trend will continue to grow vastly. Other thing is how cryptocurrencies has changed the crime sector as a whole - money laundnering for the last couple years has never been easier and it's time to do something more. However, it becomes really serious topic and many associations wants to fight. There are special methods and companies who deal with such issue. For instance Coinfirm, which is a partner with Binance, is analyzing cryptocurrency transactions to see if they went through the mixers and rate their risk level for AML compliance reasons. They just released their new Standard AML Risk Reports, you can see a sample of hack-related transaction on their blog, it's worth to know how such reports looks like. Hope next year will bring a lot of changes, especially now when there is a huge demand for AML services and this trend will continue to grow vastly.

I get a bit interested in security levels on exchanges, AML , KYC so on so on, read some articles about Coinfirm you mentioned and found interesting interview with co-founder I think. If you haven't seen yet I could recommend it, maybe you will find out sth new: https://www.youtube.com/watch?v=83JnxuUUJ5o

[Vichapte]

I understand the reasoning behind it however the question i want to ask is Why?

Most people, dare i say 90%+ are using crypto due to its anonymity so why ask for all these documents? Doesn't that defeat the purpose of crypto.

[Docent85]

Thank you for the article. KYC can be tough. Of course sometimes it's necessary for security etc etc... but then what is the sense of cryptocurrency? Crypto means underground... That makes me think if there still are services that don't use KYC. I know the exchange Cripto intercambio doesn't use it for example, but I'd want to learn about bigger and more known services

So everyone who is against KYC is simply obliged to start trading on exchanges where there is none of this. The most technologically advanced exchange without KYC is 50x exchange.

Just look at my signature