Do you think wallets will require KYC in the future?

[treslebres]

Hello guys, with regulations at crypto doors, one thing that is becoming usual is the requirement of KYC to register in exchanges and other buying-selling sites.

Do you think in future hot wallets and hardware wallets will have the same particularity?

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[OmegaStarScream]

We're already seeing closed source hardware wallets, so I wouldn't be surprised in the future If our privacy will get thrown out of the window even by HW providers.

KYC can easily be avoided, to be honest. It's just that most of the people don't want to put any effort to find other people to trade with, they just want convenience instead.

People will only learn the hard way, and mostly by getting hacked, when centralized exchanges and servers get hacked and people lose their money, it's only then when they think about switching to something more secure and safe.

[o_e_l_e_o]

I've never used it, but I'm pretty sure Coinbase already requires KYC to use their wallet, especially with their ridiculous Cloud backup service?

Regardless, a wallet which requires KYC will be rightly ignored by experienced users. The only people likely to use it are newbies who don't know any better, and these users are by and large spending relatively small amounts of money. Why would any experienced user or major holder voluntarily give up their privacy by moving to a new wallet which requires KYC, when there are so many options which protect your privacy. There is no way you can stop me from printing my own paper wallets on an airgapped computer, which I would do until the cows come home before I used a wallet requiring KYC.

[Bitcoin_Arena]

I've never used it, but I'm pretty sure Coinbase already requires KYC to use their wallet, especially with their ridiculous Cloud backup service?

Yeah, it isn't something really new.
I think the blockchain.com wallet too requires KYC. Recently I saw them luring people to verify their accounts with $25 Stellar airdrop.
Bottom line is that most of this so called wallets that control people's private keys are the ones enforcing KYC.

I would rather stick to the other traditional wallets such as electrum where I have the freedom of anonymity.

My only prayer is that major exchanges like Binance don't reduce their daily BTC withdrawal limit from 2 BTC per day for unverified accounts.

[BitMaxz]

I wouldn't be surprised if they require KYC in all on hot wallets but impossible for hardware wallets It supposedly uses as a personal wallet and they shouldn't ask for KYC.

I think the blockchain.com wallet too requires KYC. Recently I saw them luring people to verify their accounts with $25 Stellar airdrop.
Bottom line is that most of this so called wallets that control people's private keys are the ones enforcing KYC.

They just required KYC verification for Stellar airdrop to prevent multiple users to claim free $25 Stellar because there are many crypto users can be abuse this airdrop. This is only the reason why they need KYC before you claim the free $25 Stellar.

[bones261]

I wouldn't be surprised if they require KYC in all on hot wallets but impossible for hardware wallets It supposedly uses as a personal wallet and they shouldn't ask for KYC.

It wouldn't be impossible for a hardware wallet vendor to start requiring KYC. Bitmain already requires someone to give them KYC just to purchase miners direct from them. At least with the miners, you could work around this by buying second hand. However, buying a hardware wallet second hand is not advisable.

[bitmover]

Wallets requiring kyc could be easily bypassed, as anyone can easily create a private key using random numbers or whatever. Just have to do a little research to learn how to do it.

I think some services such as blockchain.com , which is already doing it, can incentive kyc. They can enforce, and some people will so it anyway. Who wants to avoid, can easily avoid it.

[elda34b]

I would certainly avoid all services which require KYC to make a wallet. It's also a bit weird if you just give your identity for the sake of creating a wallet. Even if that's hardware wallet, giving your identity is too much. You can make your own hardware wallet with flash disk just in case. And that should do the trick for most users.

They just required KYC verification for Stellar airdrop to prevent multiple users to claim free $25 Stellar because there are many crypto users can be abuse this airdrop. This is only the reason why they need KYC before you claim the free $25 Stellar.

I still believe KYC for this purpose is not really good. They can do physical airdrop if they want to.

[pooya87]

in my opinion, no they won't because it will make them obsolete.

these days people (specially newcomers) may prefer using these centralized "accounts" called wallets or use hardware wallets because of their convenience but the more you learn about bitcoin and how it works the more you realize that you never needed any of them to store your bitcoin. so if they increase the number of their disadvantages, people will simply stop using them altogether and that makes them obsolete.

[DireWolfM14]

in my opinion, no they won't because it will make them obsolete.

these days people (specially newcomers) may prefer using these centralized "accounts" called wallets or use hardware wallets because of their convenience but the more you learn about bitcoin and how it works the more you realize that you never needed any of them to store your bitcoin. so if they increase the number of their disadvantages, people will simply stop using them altogether and that makes them obsolete.

I agree, with this.  If wallets start using KYC then they will stop attracting users.  That's already happening with many web wallet services and I won't be using them from now on.  I can't see my favorite desktop wallet (Electrum) using KYC, and if the dev team goes in that direction for some unforeseen reason then I will cease using it.  Hardware wallets, again are not likely to got that direction either, in my opinion.  

Worst case scenario, it's back to using only paper for me, and I don't think I'm alone in that philosophy.  

[jossiel]

Most of the local exchanges in my country requires KYC, if you wouldn't comply the minimum amount that you can withdraw is 0. And if you will comply to the KYC, they will ask you again some time in the future just like what the complains I observed on the web lately.

For exchanges, it will be implemented but for sole use of being a wallet, I don't think it's going to be applicable for most of the desktop wallets. Like majority, I'd stay using wallets that doesn't require it if ever most of them requires KYC.

[Lucius]

OP is mix up exchanges and desktop / hardware wallets, and fact is that most exchanges in the present time requires verification of users. Not for the reasons they want to that, but because of legal regulations imposed on them, which must be respected if they want to continue their business.

It is possible that someone will come to the idea in the future to request KYC before user download crypto wallet or for buying hardware wallet, but there will always be those options that will not require something like this. In case of hardware wallets any buyer (unless you use the mediation service) is giving name, phone number and address to seller, so in a way companies that sell such devices have all our data.

[o_e_l_e_o]

That's already happening with many web wallet services and I won't be using them from now on.

I don't understand why people use web wallets at all. The only argument I can see for them is that you can access your crypto anywhere, but that can easily be achieved with a mobile wallet or carrying a hardware wallet or USB stick with your wallet file on it. There is literally no good reason to use them, and if they are starting to harvest your data as well, then you are no longer just risking your crypto, but risking identity theft too.

In case of hardware wallets any buyer (unless you use the mediation service) is giving name, phone number and address to seller, so in a way companies that sell such devices have all our data.

Yeah, you can buy a hardware wallet with bitcoin and have it delivered to a PO Box or similar, therefore not revealing any details whatsoever to the company.

[1miau]

Another reason besides security measures to move all coins from exchange "wallets" to wallets where you own the private key. In case if a wallet should lock you out of it and try to enforce KYC before you can access the service and the coins again it would only be possible to move the funds after the submission of your personal data. But if you have the private keys you can abandon the service and restore your wallet somewhere else to move the coins.

Furthermore, I don't see a way how KYC for Electrum or Ledger etc. should work since it would be useless to enforce KYC for existing users due to the reason mentioned above...

[traderethereum]

Then I will search for another wallet which doesn't require KYC because crypto is not the same as an account in the bank. We don't have to propose our identity if we save it in the desktop, mobile or hardware. But if we want to trade or sell any coins we have in the exchanges, then we should follow their rule, so we don't have to get a problem.

But it doesn't make sense if we need to fill KYC in an offline wallet or maybe it's just a trick from the government? Besides that, I don't want to store much of bitcoins in the exchange because it's too dangerous and it's too risky for me. With so many attacking the exchange, it is not a good idea to store in the web wallet or the exchanges. It is better to save it in the hardware.

[o_e_l_e_o]

Mobile wallet means it's only accessible from your mobile device, unless you use exactly same wallet on your desktop device.

No reason why you can't just restore the same seed to your desktop, laptop, tablet, mobile, etc. While I wouldn't recommend it, it's still far safer than using a web wallet.

In case if a wallet should lock you out of it and try to enforce KYC before you can access the service

This is actually a very good point. Given that there have been a not-insignificant number of exchanges which have chosen to essentially hold users' funds hostage by springing unannounced KYC requirements on them, and refusing to allow them to withdraw until they comply with said KYC, I would not be in the least bit surprised if some web wallets started going the same way. You could very well find yourself forced to send your identity to a complete stranger or forfeit your coins. Just yet another reason to never use a web wallet.

[Adriano2010]

I hope that this will not happen, because i will not do kyc for using a wallet, yes i do kyc for my banks and any other where i can't use that service without it, but not for wallet, never.

[gentlemand]

KYC for custodial wallets is already here in certain legislation, both planned and existing.

For wallets that leave control of your private keys with you I don't see how it's possible. It's just software that accesses a protocol available to all. That goes for hardware wallets, phone wallets and anything else you can think up.

[Chikito]

Hello guys, with regulations at crypto doors, one thing that is becoming usual is the requirement of KYC to register in exchanges and other buying-selling sites.

Do you think in future hot wallets and hardware wallets will have the same particularity?

I am not sure when hardware wallet will be KYC on the future because we have own seed and pivate key on safe. when you have own private key, you have own your coin without KYC anything about. what suppose KYC when you have your own?.
I thing we do KYC if dont have private key, like exchange or anything above. then you dont have coin when you dont have your private key

[Xylber]

If we let worldwide bankers to create their money with cryptos....