CEX.IO Terms violating

[TD_O]

Hello,

If I purchase BTC by cash from unidentified person (found at localbitcoins.com) and deposit it directly on my cex.io address, am I violating terms of use?

I already read cex.io/terms but it's not clear if there is any issue with this specific activity.

[OmegaStarScream]

I found this:

Code:

The User represents and warrants that both Fiat currency and cryptocurrency deposited to the Account belong to the User and derived from legal sources.

which is self explanatory, your funds need to come from legal sources.

I couldn't find the terms you're referring to and I could be wrong but I think it doesn't make sense either because there is no way they could know where everyone's funds are coming from.

[TD_O]

When I am buying BTC f-to-f, by cash how can I know all the outputs of the senders's wallet are from legal sources?

[OmegaStarScream]

When I am buying BTC f-to-f, by cash how can I know all the outputs of the senders's wallet are from legal sources?

You can't and so is the exchange. It's not realistic to assume that they'll take to analyze every deposit they receive, they just don't have the resources for that. If you're paranoid, you could use mixers.

[Slow death]

Hello,

If I purchase BTC by cash from unidentified person (found at localbitcoins.com) and deposit it directly on my cex.io address, am I violating terms of use?

I already read cex.io/terms but it's not clear if there is any issue with this specific activity.

I would say that you must first create account in a trusted wallet then go to the localbicoins and buy bitcoin with some vendor that has account verified. Ask for documents or anything that proves that this person from localbitcoin really exists in real life. After you buy bitcoins, send those bitcoins to your wallet and after make deposit in your cex.io account. This way you make sure that you will not have problems in the future. Always follow these steps I told you. If one day you are accused of anything, you can show the provenance of bitcoin.

[timerland]

When I am buying BTC f-to-f, by cash how can I know all the outputs of the senders's wallet are from legal sources?

No. Most of the deposits would be sourced from unidentified sources anyways one way or another, because they all come off exchanges. Can you say for sure that the coins that you receive on Binance or whatnot that you deposit to CEX is going to be 100% legit? Probably not.

But I think that the point is that you are able to show where your funds are from, and keep records of your purchase at LBC, so that if they do ask you for anything, you've got sufficient proof that you've done your due diligence. If you can ensure that your funds are legit, then there is absolutely nothing to worry about.

Of course, there is a risk at any exchange given that they write it in their ToS that they reserve the right to freeze your account if they suspect anything and ask for proof of funds. That's the risk that you're faced with every time you use a centralized service, can't do anything about it.

[stomachgrowls]

Hello,

If I purchase BTC by cash from unidentified person (found at localbitcoins.com) and deposit it directly on my cex.io address, am I violating terms of use?

I already read cex.io/terms but it's not clear if there is any issue with this specific activity.

I would say that you must first create account in a trusted wallet then go to the localbicoins and buy bitcoin with some vendor that has account verified. Ask for documents or anything that proves that this person from localbitcoin really exists in real life. After you buy bitcoins, send those bitcoins to your wallet and after make deposit in your cex.io account. This way you make sure that you will not have problems in the future. Always follow these steps I told you. If one day you are accused of anything, you can show the provenance of bitcoin.

This would be a better precautionary actions to be done which if you dont like to experience such hassle or headaches later on then its wise to take this advise yet you can easily reason out and give out proofs which are valid ones rather than skipping out or not just paying up attention into very simple detail you would need.
When it comes to their terms funds should be on legal source and as said any exchange wont really have that time to make such verifications so basically it wont really matter most of the time.