Solved - Freewallet.org making me nervous! (at the end nothing to worry about)

[squatter]

Just to update that all has been resolved at the end.

A lot of KYC docs was required - more than any Exchange I have signed up before. But at the end, my faith was restored in Freewallet.org

Keep in mind, as a wallet service they have no legal obligation to perform KYC since there is no money transmission occurring. Think about that -- why was more documentation required from you than on actual exchanges?

Either Freewallet has received some horrible legal advice or this is a typical selective KYC scam. My money is on the latter. Just imagine how many people can't or won't complete this invasive KYC and end up forfeiting their funds. It's a good thing you made a thread here. Public reports are the best way to get services like this to respond.

I hope you rethink your faith in Freewallet considering what they just put you through. Next time, use a real wallet like Electrum so this never happens again.

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[Freewallet]

Just to update that all has been resolved at the end.

A lot of KYC docs was required - more than any Exchange I have signed up before. But at the end, my faith was restored in Freewallet.org

The KYC process was less than a day - that I would say does impress me.

If someone does try to commit fraud via them, all I can say is GOOD LUCK!

Hello,

Thank you very much for this update.

[malevolent]

Just to update that all has been resolved at the end.

A lot of KYC docs was required - more than any Exchange I have signed up before. But at the end, my faith was restored in Freewallet.org

Keep in mind, as a wallet service they have no legal obligation to perform KYC since there is no money transmission occurring. Think about that -- why was more documentation required from you than on actual exchanges?

Either Freewallet has received some horrible legal advice or this is a typical selective KYC scam. My money is on the latter. Just imagine how many people can't or won't complete this invasive KYC and end up forfeiting their funds. It's a good thing you made a thread here. Public reports are the best way to get services like this to respond.

I hope you rethink your faith in Freewallet considering what they just put you through. Next time, use a real wallet like Electrum so this never happens again.

Isn't Freewallet incorporated in the US?

https://www.crunchbase.com/organization/freewallet

According to FinCEN hosted/custodial wallets are money transmitters now, and have to comply with all the KYC BS.

https://www.fincen.gov/sites/default/files/2019-05/FinCEN%20CVC%20Guidance%20FINAL.pdf

[squatter]

Keep in mind, as a wallet service they have no legal obligation to perform KYC since there is no money transmission occurring. Think about that -- why was more documentation required from you than on actual exchanges?

According to FinCEN hosted/custodial wallets are money transmitters now, and have to comply with all the KYC BS.

https://www.fincen.gov/sites/default/files/2019-05/FinCEN%20CVC%20Guidance%20FINAL.pdf

Indeed, I didn't learn about the new FinCEN guidance until a week or two ago. For some reason, there was zero coverage about it in the crypto media. Which is odd considering all the coverage of the FATF, whose rules aren't even binding on anyone.

FinCEN's interpretation is pretty far reaching -- perhaps a stretch too far. Why have US lawmakers repeatedly tried to pass bills imposing BSA reporting requirements on cryptocurrency services, if it was already the letter of the law?

Something doesn't add up.

[buwaytress]

Indeed, I didn't learn about the new FinCEN guidance until a week or two ago. For some reason, there was zero coverage about it in the crypto media. Which is odd considering all the coverage of the FATF, whose rules aren't even binding on anyone.

FinCEN's interpretation is pretty far reaching -- perhaps a stretch too far. Why have US lawmakers repeatedly tried to pass bills imposing BSA reporting requirements on cryptocurrency services, if it was already the letter of the law?

Something doesn't add up.

I'm not 100% sure but even the Dutch central bank according to my contacts, just the last few weeks is now making it very clear that any kind of custodial service (whether that's a wallet provider or even just a storage facility) will by January have to be under the same requirements as any financial institution.

And now within the EU there are almost no bank or company that can handle crypto-related monies that won't ask you for enhanced (and not just basic) due diligence.

[o_e_l_e_o]

any kind of custodial service (whether that's a wallet provider or even just a storage facility) will by January have to be under the same requirements as any financial institution.

This is ridiculous. And I'd be willing to bet a good amount of bitcoin that before long various governments will come knocking at their doors, demanding that they hand over details of their customers and their crypto holdings, or face being shut down. And the web wallets, much like all the exchanges, will act in their own self interests and happily sell out all their customers.

Web wallets, whilst always a massive security risk, are now becoming a massive privacy risk as well. I've said it before and I'll say it again: There is no good reason to use a web wallet.