Credit organizations and privacy policy

[1R1S]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

[panganib999]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

This is the downside of exchanges, it requires you to provide your information, otherwise, they won't accommodate, you making it seem like transacting with banks because of information providence that's needed that you won't need to experience when you are using mixers. Well, since margin trading has initial trading that makes it close to the concept of leverage, you'll really be needing to have a trading account. In other words, to create leveraged trading you have to use margin trading accounts, the created leverage will tell the ratio of borrowed funds to the margin, therefore your data will really be needed.

[audaciousbeing]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

When it comes to privacy policy, the reason why its there is to create a framework where people information is not just sent for to profit motive to anyone who wants it. However, for this rule, there is always a superseding power and argument. The interpretation of that part of the policy means that should a legitimate organization request for your credit history, they will be oblige to give it so they are informing you before hand that they would not be needing your express approval at the time. The same thing is applicable to bank and when people approach a credit organisation about their credit history or viability, its from these other organisations that have something to do with your finances that provides them the information to thereafter evaluate your stand.

[avikz]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

Passing information to credit agencies is a regulatory and licensing requirement for majority of the crypto exchanges! In a regulated environment, every financial information goes to credit agencies. I say agencies, because there's usually more than two credit agencies available in every developed or developing nation!

It requires to asses the netwoth as well as credit worthiness of an individual. Every transaction you make, is passed to the regulators as well as to the credit agencies! That's the downside of a centralized economy! We all are dealing with such nonsense!

[harizen]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

Since those exchanges are centralized and regulated, expect that they shared the same laws, terms, policies, regulations, etc. or something along those lines, just the same with the banks.

However, that data should just be transferred nor checked if a certain individual hit the "alarm" or a certain tier or activity. That line of a statement in the Privacy Policy should have supporting details of all the information and not just it will state that it transfers data to a) b) c) for a much clearer view to all users.

[Febo]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

If you agree with their rules then they just do what they want with your information's. They for sure have all written down so you cant do anything about it.

[Mometaskers]

It requires to asses the netwoth as well as credit worthiness of an individual. Every transaction you make, is passed to the regulators as well as to the credit agencies! That's the downside of a centralized economy! We all are dealing with such nonsense!

On one hand I understand it is in the best interest of all that people that can't be trusted with money aren't taking all these loans they can't pay back but at the same time, it feels - oppressive - having every single bit of financial decision you make monitored.

[Wexnident]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

The data that they gather from you is mostly to take into account the statistics of the exchange and/or banks in the area of trade volume. There are a lot of statistics involved and some higher up companies may request for such information for a detailed research they may do on it. This results in the analysis you often see on prominent banks/conpanies/exchange. Monitoring is naturally needed as well for order to happen since a business relationship isn't about trust, but rather the ability to abide by the contracts and trust cant bind you to these contracts.

[lobat999]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

That is a sad reality for centralized exchanges especially if they are operating in a country like the U.S. which is serious in implementing rules and regulations to fintech companies and obliged them to make such disclosures on their customers!

With regards to exchanges transferring customer data to credit organizations, I think I find it very unusual but I suppose both of them are bound to share financial data of an individual in accordance with Government rules and regulations which I would assume that credit organizations may need to know other pertinent data aside from your credit history and exchanges may also want to verify your source of funds - both as a means for regulatory compliance which could be aimed to curb money laundering or taxation purposes.

I guess there is nothing we could do about it not unless we use DEXs for trading or chose other exchanges that don't require KYC verification to hide our identity or find an exchange which that have NDA (non-disclosure agreement) that you may find favorable to protect your privacy. I hope these three options mentioned previously could provide you a relief on your issue. Imho.

[NathanJB]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

We never know until where our personal information are reaching. That is why it is not a good thing to provide it to anyone or any site for that matter that we do not even personally trust. These exchanges, I am referring to centralized ones, are licensed or registered under state policies and regulations. This includes their responsibility to report certain data or statistics or even personal information to the state authorities whenever demanded or necessary. We never know what is happening under the table. 

[AniviaBtc]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

Yes, privacy policy is for the security of people's information to avoid hacking and also to not let anyone just get your personal information. But it is always depend on your approval. While in terms of credit organizations, it has something to do with your money and your information about your account.

[yoseph]

I wonder why a crypto exchange is sending their customers data to a credit agency, Unless they have an agreement with them and with priavcy policy,  no one really reads what they say and that's where they tend to get lots of people to agree to them. Wouldn't be surprised if the that credit agency also sends the same data to a third party and on it goes never knowing where it ends.

[CryptoBry]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...
Yeah I realize $50k is not big for you

Since those exchanges are centralized and regulated, expect that they shared the same laws, terms, policies, regulations, etc. or something along those lines, just the same with the banks. However, that data should just be transferred nor checked if a certain individual hit the "alarm" or a certain tier or activity. That line of a statement in the Privacy Policy should have supporting details of all the information and not just it will state that it transfers data to a) b) c) for a much clearer view to all users.

This is one big problem with many platforms (both regulated and unregulated) which are doing business in the cryptocurrency industry. These are centralized organizations and they always have the desire to make the most money even to the point of selling/sharing their data to other parties who can be interested with the information s part of their monetization options. I think there are now laws which limit sharing of data to other entities especially without the consent of the users...that is why it is always important to take a look at the Terms of Service (TOS) of any sites...the only problem is that it can be a big monotony reading those long statements and we usually just skip and click AGREE. Maybe there should be a site that is making a summary of the salient points of the TOS of different cryptocurrency exchanges so we can be informed and warned.

[alyssa85]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

Credit orgs collect all the info they can from absolutely everywhere just in case it's useful. And yes they use this to score you. If you are trading on margin (and therefore might be vulnerable to margin calls) and at the same time you ask for the limit on your credit card to be raised, they will join the dots.

[hugeblack]

It varies according to the platform you are trading and the country that holds its documents.
If it is a known platform, it will set clear terms of privacy and how it can be provided to any third parties, but unfortunately, even these known platforms are vulnerable to selling your data as happened to Facebook.
In short, if you do not have sufficient reasons, do not use any central platform or attempt to provide your data.
Using central platforms means threatening your privacy.

[beerlover]

$50k is HUGE for me, I only saw that much amount of money in my dreams, hell these days my dreams are getting $1k so I can pay of my credit card debt and live at least a survivable life.

However, it is also expected that companies will make money however they can, it is not just about you, you are part of a list. They just find everyone that is worthy of advertisement and they just send it to everyone they can, which results with of course you being on the list of some credit organization. They are not sending "all" users of course, that would be futile attempt but they are still sending information (or at least mails if nothing else) of people who constantly trade first and foremost because even if you traded $50k once and then never traded that would be useless, they need people who constantly trade.

[alexsandria]

I found in privacy policy of one particular exchange that it transfers data about me to credit organizations. Actually the same is true for banks.
In what cases do they do this thing? If I make big enough trade volume at exchange, say $50,000 for year, is this information transferred as well? I suppose it happens only if you do margin trading or something... don't know much about it, except that you take loans from brokers...

Yeah I realize $50k is not big for you

Exchanges companies are no decentralized companies. They are all have rules together like the other companies. Sharing your information to the other credited comapanies was a factor of security handling to prevent issues before hand. Althogh it sounds like you are being watched by many people. Those credited organization was pretty sure that are in terms or connected to the company you used to exchanged, it could be that they as well already did transfer your data of transaction.