Is it possible to reveal our identity in the local exchange?

[1Referee]

Facebook also requires to reveal all your information and you get nothing from them, so why not do the same when local exchange ask for it?

Facebook accounts can be created with fake details easily, so that's not really a valid way to look at things.

Time will come you will not be able to use the majority of modern applications simply by downloading them, as after installing them, you will be asked to confirm your identity in one way or another. This can be seen as a standard registration procedure asking you to enter your phone number and email, as well as authentication using your Facebook or Gmail account.

Again, you can just use your account set up with fake details, and I can buy a prepaid telephone number for just €1. In the end you can always choose to not use certain apps or services asking for ridiculous amounts of very precious information.

I use a PayPal account set up with fake details to transact in case I have to, and it works like a charm. I pay someone with a PayPal account in Cash to send a certain amount of PayPal dollars to my account, and then I complete whatever transaction that needs to be completed. The only downside of this is that there is a monetary limit till PayPal starts asking you to verify yourself, but then I dump that account and create a new one. PayPal is technically a bank, but their harsh measures can be easily avoided and abused.

And yes, I am technically abusing their service. I am not using it for illegal activities, but if I can create a PayPal account that easily, so can terrorists, scammers, money launderers, etc.

[btc-facebook]

Yes, I use local exchange to convert my btc profit into fiat. Of course I'm revealing my picture on the exchange.
Actually I can use other third party service to convert into fiat but as you know , it may cost more expensive rather than convert with yourself using the local exchange

[richardsNY]

I use a PayPal account set up with fake details to transact in case I have to, and it works like a charm. I pay someone with a PayPal account in Cash to send a certain amount of PayPal dollars to my account, and then I complete whatever transaction that needs to be completed. The only downside of this is that there is a monetary limit till PayPal starts asking you to verify yourself, but then I dump that account and create a new one. PayPal is technically a bank, but their harsh measures can be easily avoided and abused.

And yes, I am technically abusing their service. I am not using it for illegal activities, but if I can create a PayPal account that easily, so can terrorists, scammers, money launderers, etc.

IIRC, PP was very loose with their terms a good 5 years ago, which I expected to be tightened up with how AML/KYC became more of a thing than ever before, but reading that they still haven't done anything about it is pretty weird. Financial services blame Bitcoin for being a tool granting criminals too much freedom, but they are doing the exact same thing, but apparently it's not enough for governments to jump in and deal with it. This reeks of hypocrisy and toxic incentives.

[1Referee]

IIRC, PP was very loose with their terms a good 5 years ago, which I expected to be tightened up with how AML/KYC became more of a thing than ever before, but reading that they still haven't done anything about it is pretty weird.

It has always been like this. Technically, PayPal isn't doing anything wrong since they abide by the laws within each jurisdiction they are open for business.

The main reason for PayPal to not immediately do anything about the fake registrations is that it economically accounts for a large enough percentage of their revenue/income model. If they force people to immediately upon registration verify themselves with ID and all that, people will move away and PayPal will miss out on a lot fee income. It's a business at the end of the day, which for them is reason enough to allow this. Income is income.

If we look at how things have worked out for crypto related businesses that did actually started to force people to ID verify themselves out of nothing, then it's not good.

What's left of Poloniex after they did it? Not much.
What's left of Bittrex after they did it? Not much.

[rodriguesserg967]

No way. Idea is to be free and untraceable, so why I should show my identity? OFC, to pay taxes and blah blah... I will, but I will not submit KYC to exchange.

[lokanot0]

Well. If Bitcoin would be legalize it is in the governments power to make law which will require us to give information of our identity through transactions in the cryptocurreny and we can do nothing about it, whether we like it or not. Therefore it is better to be in favor to avoid conflicts of interest.

[Bitknick]

It is not right to demand KYC on the exchange, why should I do this to use my own money?

[Scripture]

If it requires then i would give my information and also because i need to use that exchange. If i would have another option, i would choose those not requiring KYC.

[fattycoins]

THE SUCCESS OF BITCOIN EXCHANGE IS THE CREDIBILITY OF ID KEPT HIDDEN .BUT IF THE LAW ENFORCES YOU TO DO SO YOU HAVE TO.IT IS ALWAYS BETTER TO REMAIN VISIBLE RATHER THAN HIDDEN TO AVOID FUTURE PROBLEMS.

[avikz]

As we all know that one thing that might hinder the acceptance of the bitcoin system for the government is the hidden identity of the members. Local exchange should do intensified KYC so as to avoid the system of cryptocurrency being abused by other members as well like money laundering, funding of terrorist groups and others as well. Some of the country had done this things already and the question is would favor to do KYC on your local exchange?

So basically you are talking in favor of strict KYC norms for the crypto currency user and you think that it would progress the market by effectively eliminating the criminals from the system! I don't think it will help the cryptos grow in the way of progress, instead it will make the Banking Cartels stronger and they will continue to have the upper hand to your own financial decision. Cryptos look good in its original way. Any attempt to temper with the originality will only create roadblock from the crypto community.

Regulations are somewhat necessary but over-regulation will kill the entire market and we will effectively transfer the power to the regulatory authority to take financial decisions on our behalf. That's not good and I would not favor that!

[Harlot]

*Not some of the countries. All of the countries have at least individuals doing crimes with involvement or help from Bitcoin. To answer your question if local exchanges have been required by the government then I won't be mad about it. It just makes the competition standard and equal. If the stock exchange requires brokers to identify their customers first they should also do it to the crypto market period. Identifying yourself as a user or trader would help the government as you are cooperating with their rules.

[ani4]

kyc/aml is only about control, and infiltrating the crypto space with the corrupt, fraud that is the Legal system.

But yes, centralized exchanges (and DEX with elements of CEX or Legal entities) will no doubt bend over to take the KYC/AML compliance demands.

Anyone who is interested in their own privacy or freedom will steer as clear as possible from these... proper DEX/atomic swaps and private smart contracts will be the go-to ways of exchanging... though yes there will be compromises in convenience or trade speed initially.

[ani4]

*Not some of the countries. All of the countries have at least individuals doing crimes with involvement or help from Bitcoin. To answer your question if local exchanges have been required by the government then I won't be mad about it. It just makes the competition standard and equal. If the stock exchange requires brokers to identify their customers first they should also do it to the crypto market period. Identifying yourself as a user or trader would help the government as you are cooperating with their rules.

impossible to enforce on the wider crypto space though, surely people see this? Yes, it will happen on any legal entity/centralized exchange, because that is their world, they have jurisdiction over it. Standard and equal, sure... in which jurisdiction and for how much of the wider population? How can it be standardized and equal across the board (whether or not you think that is a good thing), when it is literally impossible to enforce except via centralised legal entities,,, all the innovation and excitement will simply remain in the open-source/decentralized elements and the centralized bits will always be playing catch up... stale and controlled.

[Ridwan Fauzi]

As we all know that one thing that might hinder the acceptance of the bitcoin system for the government is the hidden identity of the members. Local exchange should do intensified KYC so as to avoid the system of cryptocurrency being abused by other members as well like money laundering, funding of terrorist groups and others as well. Some of the country had done this things already and the question is would favor to do KYC on your local exchange?

So basically you are talking in favor of strict KYC norms for the crypto currency user and you think that it would progress the market by effectively eliminating the criminals from the system! I don't think it will help the cryptos grow in the way of progress, instead it will make the Banking Cartels stronger and they will continue to have the upper hand to your own financial decision. Cryptos look good in its original way. Any attempt to temper with the originality will only create roadblock from the crypto community.

Regulations are somewhat necessary but over-regulation will kill the entire market and we will effectively transfer the power to the regulatory authority to take financial decisions on our behalf. That's not good and I would not favor that!

Yepp, KYC is another part that will slowly destroy the concept of cryptocurrency. 'Money laundering and funding of terrorist' is news which cannot be proven by facts, they only plan and look forward to the future of cryptocurrency with suspicion. However, we cannot prevent and make Banking Cartels become stronger, because until now, many cryptocurrency users are still relying on banks to exchange cryptocurrency into money fiat, there is no special way prepared by cryptocurrency to overcome this.

Regulations make us aware that the government is fully in control of everything that is done by its people, I just have an expectation that decentralized system will make many new people come and understand the decentralization system with certainty.

[KorakPawon]

yes this can be one reason why most countries have not issued a decision about bitcoin, because maybe the state also wants clarity about the use of bitcoin user identity and so on, but there may be many more reasons about the country because the country's decision must be considered.

[jseverson]

Yepp, KYC is another part that will slowly destroy the concept of cryptocurrency. 'Money laundering and funding of terrorist' is news which cannot be proven by facts, they only plan and look forward to the future of cryptocurrency with suspicion. However, we cannot prevent and make Banking Cartels become stronger, because until now, many cryptocurrency users are still relying on banks to exchange cryptocurrency into money fiat, there is no special way prepared by cryptocurrency to overcome this.

I don't necessarily support KYC, but I thought I'd point out that KYC/AML is required of any business that carry money laundering risk. It doesn't matter if they deal with fiat or Bitcoin which means it doesn't discriminate against crypto.

It's also targeted towards businesses themselves, not individual people -- meaning anyone can skip it by simply not dealing with businesses that implement them. Let's not forget that Bitcoin was originally meant to be peer-to-peer anyway. KYC/AML will destroy nothing but the convenience of using of an exchange, and even then, there will be some people that won't mind.

[satana_igor666]

Since there is no clear regulation of the crypto currency, I would prefer to hide information about me.  And suddenly they will want to accuse me of illegal money laundering.  So at least no one will know that it's me.

[Popov_popov]

I prefer anonymity, it's good that we still can.

[BitHodler]

KYC/AML will destroy nothing but the convenience of using of an exchange, and even then, there will be some people that won't mind.

If people are not valuing their privacy enough by handing over precious information to ICOs requiring KYC/AML verification, then they definitely won't mind handing over their information to an established exchange.

It's shocking to me how people don't care about anything as long as they are in a position allowing them to potentially make profit. Some people blatantly admit that they don't care about it.

Their reasoning behind that way of thinking is that they aren't wealthy enough to become a victim of theft and whatnot. They don't realize how stupid they make themselves look by talking this level of nonsense.

[jseverson]

Their reasoning behind that way of thinking is that they aren't wealthy enough to become a victim of theft and whatnot. They don't realize how stupid they make themselves look by talking this level of nonsense.

I kind of understand the general apathy towards their own data. They simply don't know any better regarding the potential risks, and it's hard to blame them considering how new all of this internet boom is -- it hasn't even lasted one generation. The concept of protecting your online privacy hasn't even reached the mainstream until a few years ago. Things are starting to change, with websites being open about their privacy policies, etc. so people are bound to wise up as we go along. But yeah, the "nothing to hide nothing to fear" mentality is just stupid.

That being said, I guess it just boils down to trust for those who are informed. I have nothing against sharing your data for as long as you know the potential risks. I just find it funny that people seem to feel like they don't have a choice with KYC, like exchanges are absolutely necessary.