What do YOU find eniticing about anonymous exchanges?

[ChangeNOW]

After spending a certain amount of time on the forums here and there, I've started thinking about what exactly drives people to truly anonymous exchanges (not registration-free with selective KYC checks, but to true KYC-free services). I understand that there are some privacy geeks and important crypto enthusiasts who would like their identity hidden at all costs, but what's in it for an average person who purchases small amounts of crypto for hodling or token-specific purchases? Would that be worth opening countless new services that can maintain their lack of KYC for a while, then, when the time comes, flip the KYC switch, then open a new anonymous service over and over again?
Again, I'm just interested in opinions, so please let me know.

[bittraffic]

Yep, if an exchange claim they don't collect KYC and then months after it, they start to collect and you can't withdraw without submitting IDs. Its such a trickster but yep you will still end up submitting an ID. Its going to be worse if you have submitted to KYC and after it they require you to submit a photo holding the ID you have submitted and a video call as well.

[gentlemand]

Nothing.

I certainly would not trust any exchange hiding behind Tor. I would not trust any exchange out in the open that was KYC free for longer than it took to do the transaction. They're all going to be forced to KYC it at some point.

If somewhere matched your description of basically operating burner exchanges, there is nothing enticing about that prospect whatsoever.

[squatter]

Nothing.

I certainly would not trust any exchange hiding behind Tor. I would not trust any exchange out in the open that was KYC free for longer than it took to do the transaction. They're all going to be forced to KYC it at some point.

We know that now but a few years back, we had options and it was still the wild west. I left Bitstamp immediately when they started requiring KYC. I was still using BTC-e when they were taken down.

Ah, those were the days.

After spending a certain amount of time on the forums here and there, I've started thinking about what exactly drives people to truly anonymous exchanges (not registration-free with selective KYC checks, but to true KYC-free services). I understand that there are some privacy geeks and important crypto enthusiasts who would like their identity hidden at all costs, but what's in it for an average person who purchases small amounts of crypto for hodling or token-specific purchases?

Tax avoidance is probably a big one with cryptocurrency investors. Another is the threat of identity theft. Every day, we hear about a new data breach where sensitive customer data is stolen by hackers, later to be sold on the darknet. I minimize the exchanges that I do business with for that reason.

[timerland]

After spending a certain amount of time on the forums here and there, I've started thinking about what exactly drives people to truly anonymous exchanges (not registration-free with selective KYC checks, but to true KYC-free services). I understand that there are some privacy geeks and important crypto enthusiasts who would like their identity hidden at all costs, but what's in it for an average person who purchases small amounts of crypto for hodling or token-specific purchases? Would that be worth opening countless new services that can maintain their lack of KYC for a while, then, when the time comes, flip the KYC switch, then open a new anonymous service over and over again?
Again, I'm just interested in opinions, so please let me know.

People don't like the verification process.

It takes time for verifications to get processed, and people want to be able to get their funds exchanged fast. And also, your personal information simply isn't safe with random exchanges that have popped up, especially when extremely in depth and sensitive information are increasingly being demanded.


Have you researched into the legal implications of continuously opening new, pseudoanonymous exchanges? If you're opening it under the same company, wouldn't it be a matter of time before they get cracked down?

Also, have you settled your case with Privcoin?

[bitmover]

Honestly I prefer much more a kyc free exchange, because I don't know what that shady companies will do to my personal data

However, I would never send Fiat money to an exchange that doesn't require kyc

One thing is a cryptocurrency x cryptocurrency exchange. Fiatxcrypto is totally different, and regulations are here to protect us when it comes to Fiat.

[ChangeNOW]

Have you researched into the legal implications of continuously opening new, pseudoanonymous exchanges? If you're opening it under the same company, wouldn't it be a matter of time before they get cracked down?

Registering an offshore business is easier than you think. Again, it's just a concept; we personally have made our peace with the fact that we have to have KYC, and after the case you're talking about here we've made it so that you can opt out and receive a refund.

Also, have you settled your case with Privcoin?

We're still waiting for them to contact us so that we know the refund wallet is still intact and our lawyers know that the folks over at Privcoin have officially opted out.
So far, no one has replied yet; the thread has been silent for months, and since we don't collect personal data, we can't contact them through the support ourselves. When they show up, the money will be refunded to them within 24 hours.

[LeGaulois]

I see a difference between anonymity and financial privacy. For some people to be anonymous is not so important but their financial privacy has a value. The average Joe who you referer to isn't interested to be anti-KYC, in fact, they have no problem to give all information asked.

It is not easy to build a reputation for an ephemeral site, you will need to use 3 times more resources to build your reputation. I do know how easy it can be to set up offshore companies etc, but doing it over and over will just tarnish the image for the exchanges.
Also, how would you deal with people having some coins in their wallet, will you disappear with their coins each time?

[ChangeNOW]

I see a difference between anonymity and financial privacy. For some people to be anonymous is not so important but their financial privacy has a value. The average Joe who you referer to isn't interested to be anti-KYC, in fact, they have no problem to give all information asked.

It is not easy to build a reputation for an ephemeral site, you will need to use 3 times more resources to build your reputation. I do know how easy it can be to set up offshore companies etc, but doing it over and over will just tarnish the image for the exchanges.
Also, how would you deal with people having some coins in their wallet, will you disappear with their coins each time?

Hey there. Could you please explain what you mean? If you're talking about our company in particular and the general type of an instant exchange service, we don't have a wallet; such services aren't supposed to have any. The only funds that get in the "custody" of such service are the ones that the user wants to have exchanged, it's a one-time transaction and the funds are returned to the user as soon as they're exchanged.

[ash_hopper]

I see a difference between anonymity and financial privacy. For some people to be anonymous is not so important but their financial privacy has a value. The average Joe who you referer to isn't interested to be anti-KYC, in fact, they have no problem to give all information asked.

It is not easy to build a reputation for an ephemeral site, you will need to use 3 times more resources to build your reputation. I do know how easy it can be to set up offshore companies etc, but doing it over and over will just tarnish the image for the exchanges.
Also, how would you deal with people having some coins in their wallet, will you disappear with their coins each time?

How can they disappear with coins on the user's wallets if they don't have access to it? It's instant service, they didn't store users funds

[icalical]

I simply don't want to give away my ID or any identity document to just a random people, they can do anything with our ID, on behalf of us.

 I know that most of exchanges that demand KYC has strict Policy and such thing, but what if our document got leaked or took by a hacker, or even those exchange itself sell it to a bad person, and the company behind the exchange on the other side of the world. We could not even sue the exchange. We can't do anything.

[ChangeNOW]

I simply don't want to give away my ID or any identity document to just a random people, they can do anything with our ID, on behalf of us.

 I know that most of exchanges that demand KYC has strict Policy and such thing, but what if our document got leaked or took by a hacker, or even those exchange itself sell it to a bad person, and the company behind the exchange on the other side of the world. We could not even sue the exchange. We can't do anything.

This does make a lot of sense. However, legitimate services wouldn't give up such information to third parties if they're not related to law enforcement - you could get in big trouble for that. But still, the argument is really valid - never give up your ID unless you trust a platform and/or absolutely have to.

[milewilda]

I simply don't want to give away my ID or any identity document to just a random people, they can do anything with our ID, on behalf of us.

 I know that most of exchanges that demand KYC has strict Policy and such thing, but what if our document got leaked or took by a hacker, or even those exchange itself sell it to a bad person, and the company behind the exchange on the other side of the world. We could not even sue the exchange. We can't do anything.

This does make a lot of sense. However, legitimate services wouldn't give up such information to third parties if they're not related to law enforcement - you could get in big trouble for that. But still, the argument is really valid - never give up your ID unless you trust a platform and/or absolutely have to.

"However, legitimate services wouldn't give up such information to third parties if they're not related to law enforcement"

About on this bolded line, it isnt really necessary to have this indication because 3rd parties do have the full control on how they would store and used up the
informations being gathered to its users.Most people here on Crypto do value anonymity and giving out any personal documentations is really a contrary thing towards on what
they are expecting.