Can an exchange that requires KYC call itself as DEX?

[rosezionjohn]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.


EDIT: For those who are asking for the exchange name, it is Allbit. Based on the replies, it seems that this case is only in S. Korea. Let's hope this does not spread.

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[BitcoinTurk]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

I do not need to ask for information about KYC verification or other customer details in such systems. I've lived on the Aphelion Dex where I tried to process the problem in the last month. I want to invest in token ICO is much lower than the price of course, of course, this verification is completed in a short period of time, but as I said, normally they should not want these documents. The main objective here is to prevent ICO-style projects from buying and selling token because in some countries there is a ban on investing in ICO projects. In fact, I can share the data I received over Binance as additional information. According to the data provided by the Binance market, citizens of the following countries cannot participate in ICO projects;

Afghanistan,Albania,Belarus,Bosnia & Herzegovina,Burundi,Central African Republic,Cote dIvoire,Cuba,Democratic Republic of the Congo,Ethiopia,Guinea,Guinea-Bissau,Iran,Iraq,Lebanon,Liberia,Libya,Mainland China,Malaysia,Myanmar (Burma),North Korea,Republic of Macedonia (FYROM),Serbia,Somalia,South Sudan,Sri Lanka,Sudan,Syria,Thailand,Trinidad & Tobago,Tunisia,Uganda,Ukraine,United States of America (USA),Venezuela,Yemen,Zimbabwe

As I mentioned in the message, it is highly likely that such an application is made to prevent the participation of citizens of this country in such projects.

[jacafbiz]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

You know this is the joke of the day, I don't understand why people in this space are bent on abusing buzz words. Why in the word do they think a DEX need users identification, what I think they can do is to ban IP from countries where they don't want the citizens to use their platform. I know some exchanges are doing this now

[kingzpro]

It can be possible or it must be a requirement from the local regulators so the scenario can be that the exchange is fully decentralized and operated on smart contracts but at the same time it is asking kyc from each wallet based account to comply with the regulatory agencies but to be secure you should check from multiple sources before trading there.

[beeelzebub]

They can call themselves anything but if they ask a kyc and calling themselves a dex i would call them clowns.

[Awesomus Maximus]

The whole thing is really simple. By definition, decentralized exchanges have no central entity that runs the exchange. Because of that fact, there is nobody to ask for KYC. If they ask for KYC, they are not a decentralized exchange, they can't be called a DEX. They can't be a DEX and ask for KYC at the same time. Case closed.

[mrdeposit]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

Yes DEX means decentralized exchange. Actually, it should not be required KYC. There must be a mistake, maybe you misunderstood. Today, even on centralized exchanges, although limited, you are allowed to trade without passing KYC. 

[kickdapa]

They can call themselves anything but if they ask a kyc and calling themselves a dex i would call them clowns.

But the reality is different now, Many decentralized exchanges are asking KYC for verification their real users. I don't know why they call them a DEX platform. Even, right now, I signed up in Allbit exchange and they are asking a KYC verification with a selfie by holding my ID card! But I have to go through it because VANTA token only listed there and I have to trade in Allbit exchange to get VANTA bounty rewards. What a shady step is this!

[TheAndy500]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

Decentralized exchange - that is DEX, should not ask you to pass KYC verification.
The only reason why DEX can ask someone to pass such a verification is if someone wants their token to be listed on exchange and thus want to give more credibility of the project. But about this should be asked only developer, not ordinary traders.

[lobo13hf]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

It can't, that means if the decentralized just used to be a marketing gimmick only dude. The DEX will not require any personal information from the users and if that needs and then it's still controlled by the developers.

[kickdapa]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

Yes DEX means decentralized exchange. Actually, it should not be required KYC. There must be a mistake, maybe you misunderstood. Today, even on centralized exchanges, although limited, you are allowed to trade without passing KYC. 

No, he is not misunderstood. At this moment I am in Allbit Decentralized exchange's KYC submission page! Even without verification KYC, I am not able to deposit here! Can you think about it? Allbit is a Korean decentralized exchange, for Koran users, they don't ask KYC! But for the outsider of Korea, people have to go through KYC with a clear selfie by holding the ID card!

[livingfree]

Can you disclose what that exchange is? there's no need for a DEX to ask their traders to comply for a KYC requirement. It's the reason why everyone wants to trade with it because there's no need for us to take that kind of verification.

If an exchange calls themselves as DEX but they are requiring such KYC.

They aren't really a DEX, they can claim it but they will never be a DEX if they have that.

[Classica35]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

I need Jo one to tell me it's no DEX. Well, it must be seen to fulfill some of the criteria of a DEX, but my expectation and based on what I have read, is that DEXes do not require KYC.
Another thing that I discover with some decentralized exchanges, is that, some of them are considering blocking some countries, such as US from probably withdrawing or trading.

[B.]

the goal might be good so money laundering can be minimized but I think there will be many people who don't like it for reasons of privacy and not simple
I don't really mind if I have to give my data but I don't like a process that takes longer than usual so I prefer simple exchangers rather than exchangers that need KYC for reasons of convenience

[pixie85]

In a way they can because decentralized part means they aren't holding your keys. If you don't send it to their wallet before exchanging with someone else it's already decentralized. KYC shouldn't exist there because they aren't responsible for your trades so they shouldn't have to verify you but maybe in some countries KYC is required for them to operate at all.

[Bttzed03]

In a way they can because decentralized part means they aren't holding your keys. If you don't send it to their wallet before exchanging with someone else it's already decentralized.

This could be the reason why the claim of being a DEX.


On the KYC part, the exchange should at least allow users to test their platform first. They can require KYC for withdrawals and not on deposits.

[matchi2011]

Can you disclose what that exchange is? there's no need for a DEX to ask their traders to comply for a KYC requirement. It's the reason why everyone wants to trade with it because there's no need for us to take that kind of verification.

If an exchange calls themselves as DEX but they are requiring such KYC.

They aren't really a DEX, they can claim it but they will never be a DEX if they have that.

The very reason why DEX is booming because of this decentralized platform, no one is requiring you to provide any private information about yourself, KYC is for centralized operation so if this exchange required you to follow this rules, the need to change that offer not being a dex type but a centralized one.

[eaLiTy]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

The idea of DEX exchange might change in the future world wide when strict rules and regulations are implemented, Korea does have a regulation when it comes to running an exchange and they have to follow the rules if they want to function in that country and so is the reason they are asking for KYC to abide by the rule and nothing else, i know mixing sites that implement KYC   . You can trade elsewhere too where they give the freedom of not verifying your account, it is your choice.

[Herbert2020]

absolutely not.

one of the main characteristics of a decentralized system is that it is permissionless. which in simple terms means you don't have to get the permission to use that decentralized system from any authority which in this case translates into not needing KYC. and if they do enforce it and have a way of preventing you from using that platform if you don't give them any KYC documentations then it means it is NOT DEX.

[Kang Bahar]

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

Which exchange? Can you give me the link of that exchange?
Of course not! The exchange who requires the KYC for users is not a DEX and not related to DEX at all. Because in my opinion, KYC applies to Centralized Exchange (although there is a Centralized Exchange that does not require KYC).

A decentralized exchange (DEX) is a cryptocurrency exchange which operates in a decentralized way, i.e., without a central authority. Decentralized exchanges allow peer-to-peer trading of cryptocurrencies.[1]