KYC defeats the purpose of Crypto. Thoughts anyone?

[Ailmand]

One of the beauties of crypto-currencies is that it creates an avenue for users to maintain some level of anonymity, but with the constant pestering about KYC (many of which are scams) that seem to be waning. kYC presents a single point of failure for crypto unique feature of anonymity (or pseudo anonymity)

On point, aside from that the risk that KYC brings to user is really alarming. Ever heard of KYC credentials being sold in the dark web for money? What if your credentials are used for doing fraudelent acts or illegal activities. Along with the risk of your credentials being exploited is the inconvenience of making crypto inaccesible to the mass. With the KYC procedure, it will be inconvenient for new-comers to gain access to platforms to get their first ever crypto.

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[Viper_Unleashed]

KYC should be made mandatory while transferring crypto-fiat.This will prevent money laundering but doing doing every now and then is just awful and the total meaning of cryptocurrency the anonymity becomes obsolete.Crypto came into existence to provide financial freedom and maintaining anonymous status and of course for safe transactions but KYC makes people to think otherwise.We have already seen people details are being sold on dark web etc etc so still a long way to go.

[michellee]

I think you don't have to use the exchange which using KYC and doesn't need to invest in the ICO which using KYC too, that is simple. But I don't think to feel that I am a grumpy old man because of KYC because I think it's normal to see the exchanges want to apply KYC for their members and they let their members decide. For me, KYC is not a big deal now, and it is our decision to use KYC or not.

[raymondspeaks]

Seems a lot of you (if not all of you) think like me. I entered crypto for the vision, not for the money, you know? The silent revolution we've all been waiting for. I'd love to be able to completely live off my crypto completely but sadly where I live is so out on the backwaters of society there are some shops that still only take cold hard cash as payment. If I'm going to be able to live then places like localbitcoins.com is my friend!!

It would be great if I could earn bitcoin and only bitcoin but with my diverse portfolio I'm earning a variety of different coins each month, which means using an exchange, which means giving away my ID to a faceless entity over the screen - I worry about ID theft too. There's been a few exchanges I've had over the years where some dude has asked me for my passport so that I can trade with him. Like, to me, that's a no no - giving some random my ID.. just.. no.

I guess in a weird fucked up way if we want mass adoption then maybe it's the way it has to go. I guess there has to be a little bit of give and take in any relationship.

[Herbert2020]

it is not just about wanting to keep your privacy either. the bigger problem is with the fact that you can not trust any of them (exchanges, ICOs,...) with your identification since in the past a lot of them (even big famous exchanges) have sold their users' identifications on the internet for money, although they tried to keep it silent and deny it.

it doesn't defeat the purpose of cryptocurrencies though. it is centralized services and they are free to do whatever they want. it is our mistake for using them. we should start moving towards more decentralization. for example start using decentralized exchanges instead of Binance, Bittrex, Coinbase,...

[kingpin4321]

Kyc is in full know your customer.
Yes you might say one major features of cryptocurrency is decentralization that is it is not under any regulations but also note that the blockchain technology is transparent .
I think the openness of cryptocurrency has made it vulnerable to scam and know your customer are one of those security measures to check mate them. Also there are some countries some projects do not want citizens from there to partake in kyc can help detect and differentiate them

[jaywizzy]

Most of the project this days that require kyc have been defeating the purpose of kyc by requesting for full details of people which should not be done in that way. Is better to change the process how kyc is been conducted.

[baigreen]

The KYC process annoys the hell out of me. I remember a time when you could trade coins freely and without owning up to your identity at all. Not that I'm hiding anything, I just don't like every man and his dog having a copy of my government ID - I feel that's very intrusive. I mean the whole idea of cryptocurrency was anonymous peer-to-peer trading without government intervention. Now it seems you can't fart in the wrong direction without someone breathing down your neck.

I mean I get it, exchanges, ICO's, etc, want to be on the safe side -- although what I really object to is these places accepting my crypto first and then telling me that I need to give them a mugshot if I want to use it, or withdraw it again. It's a nightmare.

Anyone else a bit miffed with all this identity craziness we're in right now?

Or am I just being a grumpy old man?

Now, not only every man has. And all your transactions are visible to the state. Or official cryptocurrency exchanges that hide something. Get you such a coin. They grow you make a profit. And then come tax. And in general, because of the constant fraud, I don’t really want to copy copies of my documents. But unfortunately it is necessary.

[fallensky7]

For me, KYC is evil. The rules of KYC and AML encroach on the main cryptocurrency concept - the anonymity of conducting transactions. We came here to become financially independent and withdraw from control. If each user is registered and monitored, the blockchain industry will become a centralized fiat industry, not to mention who will use our data in the future!

[eagle10]

yes, this has deviated from the original crypto goal which created an anonymous and free payment method without having to involve personal identities and documents. just positive thinking, maybe this is a first step in getting legalization from the government related to the existence of personal identity.

I just hope you are right that this may signal the start of just legalization of crypyocurrency in other parts of the world. However, as I see and observed about it, it is just being use to scam people of their identity and later on abandoned the project which in their white paper it is too good to be true and tempting to invest.

[GreatArkansas]

It really depends on us if we do the KYC things. But you can still use cryptocurrencies without the KYC, that's the beauty of cryptocurrencies. There is some entity that uses KYC, such as the different country that has regulation on cryptocurrencies, but there are still many ways on how to do it, use cryptocurrencies without KYC. KYC is really different on purpose of crypto.

[RasenShuriken]

Yep, the purpose of the crypto was anonymity, that's it. Even though if it had a kyc procedure, there is no kind of feeling that you would use the crypto except for investing and trading it.

[alexsandria]

But how about the projects that is being abused on the market? What could be their activity to lessen people that is logging in and creating multiple accounts of their own just to take advantage of the project? I think the best way is to implement KYC knowing the fact that KYC has taken the essence of crypto which is anonymity, there is nothing we can think unless someone can provide the best substitute that projects can use.

[harrypotpot]

I think it would be the benefit of us if we are going to abide whit their rules. In the first place, we can choose not to participate if we don't want to disclose our identity to them. Second, it will be our tool to be come safe if we are the legitimate user logged and signed up for the account that we have. In case that we are going to be hacked, these KYC will going to bolster our security.

[De4ted]

We cant blame the other crypto companies implementing it maybe because of frequent spam and abusive users.In case of exchanges i guess its just acceptable since they are just verifying the ownership of the account by conduct KYC.

If they cant take those risk they must leave crypto world, most of the people here or I could tell all of the old users here surely dont want to be know by others in here.

[raymondspeaks]

We cant blame the other crypto companies implementing it maybe because of frequent spam and abusive users.In case of exchanges i guess its just acceptable since they are just verifying the ownership of the account by conduct KYC.

If they cant take those risk they must leave crypto world, most of the people here or I could tell all of the old users here surely dont want to be know by others in here.

Yeah I mean the whole incentive for me getting into crypto was not having the government knowing what I'm up to all the time. Again, not that I'm doing anything dodgy but I'd rather when someone wants information from me then they have to request it. Rather than just pull up a database and find it.

[Yemolou]

I agree with you and also think that crypto currencies were created for anonymity and the lack of third party. A KYC process is standing not for those aims and I think we should stop risking our personal information almost in every project.

[raymondspeaks]

I mean to me it's all about having control over your identity, wealth, etc.

Right now we don't have much control over that. A user mentioned earlier about the big exchanges selling our data off - data selling is such a lucrative industry. If you've ever given your real name away to somewhere you can guarantee that at some point it's been sold to someone.

[finzyoj]

I mean I get it, exchanges, ICO's, etc, want to be on the safe side -- although what I really object to is these places accepting my crypto first and then telling me that I need to give them a mugshot if I want to use it, or withdraw it again. It's a nightmare.

I deeply understand if exchanges or wallets that we are using requires KYC, but when it comes to ICO — a new coin in the market? That's a big NO because I can't see the sense at all. We know and they know to themselves that they're coin is still insignificant and not yet influential so why would they require our personal infos? This kind of scenario can be compared to a man buying a bottled water in the convenience store but need to tell his name first before paying, seems pointless right?

If that will be the new system in every ICOs which will be released then probably I'm sticking to bitcoin forever.

[Badman-Crypto]

I agree with you about KYC being annoying but it is all part of regulatory compliance that the space needs to go through to be legitimised. You can still trade on decentralized exchanges without verifying your identity.

The only real hurdle to get through without having to provide KYC is getting your FIAT money into crypto through places like coinbase or kraken. There are still places where you can do that anonymously though like localbitcoins.