Why KYC is extremely dangerous – and useless

[noahark]

It seems to me that very soon it will become a mandatory procedure for all exchanges, trading platforms, and possibly for the entire Internet!

AFAIK, Binance one of exchange that not asking KYC for members who not needed to withdraw more than or equal 2 BTC/day. It's mean, if you are joining in exchange that asking KYC to activate your account, you should avoid them. How to do this, you can join them, but don't use real personal information first. Or, if you want to play safely, you can try to search/ask in the forums before join and find information about KYC on exchange you want to join. This exchange list articles^[1] can be an option that not asking KYC as mandatory for members.

^{[1] DYOR/DWYOR}

A BIG WARNING here! STAY AWAY from Binance Free Accounts! At some points, they will freeze your assets and force you to provide KYC. THis happened to me! This Exchange is not serious at all!

[masulum]

A BIG WARNING here! STAY AWAY from Binance Free Accounts! At some points, they will freeze your assets and force you to provide KYC. THis happened to me! This Exchange is not serious at all!

based on my chat with Binance support, frozen account or assets happen because you account got security issue or something else made your account detected unusual. This case can be a good information for all of binance user, especially who don't want to passed KYC. Thank you for sharing, i hope you can get your money back.

[XZERO1]

What makes it worse is the fact that even decentralized platforms and exchanges now are starting to ask users to go through KYC process to be able to use that exchange (Idex is one of them) which doesn't make sense at all, after all one of the main reasons why decentralized platforms exist in the first place apart from safety of funds is because these decentralized platforms don't need much information from users that can be considered sensitive so they are anonymous in a way and because of that they don't need to worry about their identity information safety or platform is going to sell their information on black market or not.

So these supposed decentralized platforms by asking their users to provide them with their personal documents are going completely against what you expect from a true decentralized platfrom and of course decentralization as a whole.

[l3pox]

A BIG WARNING here! STAY AWAY from Binance Free Accounts! At some points, they will freeze your assets and force you to provide KYC. THis happened to me! This Exchange is not serious at all!

based on my chat with Binance support, frozen account or assets happen because you account got security issue or something else made your account detected unusual. This case can be a good information for all of binance user, especially who don't want to passed KYC. Thank you for sharing, i hope you can get your money back.

sometimes they could freeze it for higher deposits/trades than normal so it's better to stay away if you want to trade without KYC.
any exchanges do something like that with free accounts.

there's a lot of room for DEXs to grow.

[Asuspawer09]

KYC is really risky for a lot of users and I don't really recommend doing it for some of the members if not necessary.

Your personal information could be used in many illegals things online so you might want to think twice before doing KYC on a website, make you that the website your doing KYC is a legitimate company, or have licensed.

In my country with just a 1Valild ID, you could already do a loan in a mobile application imagine if your information is used to gets a loan.

[Lordhermes]

This KYC sustem is bias sence of political fight against inter citizenship, bittrex suffers this because their customer decrease with a short time in the name KYC system, from your explanation KYC system is fiscally rubbish because of the hinderant it shows on investors.

[bct_ail]

A BIG WARNING here! STAY AWAY from Binance Free Accounts! At some points, they will freeze your assets and force you to provide KYC. THis happened to me! This Exchange is not serious at all!

That is bitter. Did they not give any easons why they have frozen your account? What is the sum involved and what is the current status? Would be nice if you could provide us with more information.

[tvplus006]

It seems to me that very soon it will become a mandatory procedure for all exchanges, trading platforms, and possibly for the entire Internet!

AFAIK, Binance one of exchange that not asking KYC for members who not needed to withdraw more than or equal 2 BTC/day. It's mean, if you are joining in exchange that asking KYC to activate your account, you should avoid them. How to do this, you can join them, but don't use real personal information first. Or, if you want to play safely, you can try to search/ask in the forums before join and find information about KYC on exchange you want to join. This exchange list articles^[1] can be an option that not asking KYC as mandatory for members.

^{[1] DYOR/DWYOR}

In fact, Binance will have to pass KYC if you decide to engage in margin trading or futures. In addition, verification is required to participate in IEO, which are held on the Binance exchange. Therefore, if you decide to use these additional services of the exchange, you will be forced to pass KYC.

[masulum]

In fact, Binance will have to pass KYC if you decide to engage in margin trading or futures. In addition, verification is required to participate in IEO, which are held on the Binance exchange. Therefore, if you decide to use these additional services of the exchange, you will be forced to pass KYC.

Of course, this is the risk of a free-account that has a limit given by centralized exchange providers. This of course has already been mentioned by each exchange. However, when we talk about volumes, generally Centralized Exchange has higher volumes compared to DEX, and Binance fame is like being a magnet that can bring users to use this service. I myself have used Binance, but not to KYC, because I am no longer interested in this exchange service.

[Phoenix_PROG]

I don't like KYC as well, scammers steal others identity and use them to create crypto projects, other ICO rating websites collects the project team KYC to verify that the ICO project is real, on their websites you will be KYC VERIFIED, very popular on ICObench but doesn't mean it's real team ID

[bct_ail]

but doesn't mean it's real team ID

This has been noted all too often in the past. Unfortunately it is also no big problem to buy a identity. Recently I read a report about it. I think it cost about $100 for KYC data.

[Tytanowy Janusz]

but doesn't mean it's real team ID

This has been noted all too often in the past. Unfortunately it is also no big problem to buy a identity. Recently I read a report about it. I think it cost about $100 for KYC data.

Already posted it here:
50$ for full KYC data (with utility bill)
100$ for new credit card
Real physical fake id - 100$
NEW IDENTITY - 500-1000$ (with birth certificate, ID, driving licence, passport etc.)

Great work @1miau. If you don't mind i would like to do Polish translation.

There are probably millions of KYC data sets on the black market, with this number increasing daily as KYC enforcement becomes more widespread.

I will quote my post here that i made for a guy who was pro restrictions and pro KYC:

~50$ - that's how much you need to pay for KYC photos on darknet.
~100$ - that's how much you need to pay for credit card that is registered on random guy.

Also ICOs scammers has thousands of ID from their KYC that they demanded from their clients. Sometimes i think that this is a main income from today's ICOs. You get 1000 bounty hunters that perform KYC to get reward and you have 50 000$ from darknet. You don't need to sell even a single token during ICO.

Any restrictions will only makes things harder for honest guys. Scammers will always find a way to scam.

And actual data right from darknet:

By the way, do you have a source where we can see this tyranny scandalous activity of selling KYC information is happening?

I will not share darknet market links here because i don't know if its not against BTT (and personally i don't want to promote that) rules but i can link you this article to prove that I didn't made it up:
https://www.ccn.com/hacked-customer-data-from-world-leading-cryptocurrency-exchanges-for-sale-on-the-dark-web/

And photo of random vendor selling KYC data:


And if some may think that exchanges need photo with you holding a piece of paper with date than you need to know that 100$ is enough for fake ID.



So as I already said. Any restrictions will only disturb honest users. Every KYC, every coin holding if they are tailed with scam etc. Scammers will always find a way to scam and wash dirty money.

Scammers have fake IDs, KYC data, they sell OTC - P2P, they spread it through dozen of exchanges and cantors they may even use it to pay for signature campaigns for they current business (casino, exchange). It is possible that your address is already tailed. It is possible that they have their own exchange.

In present world you don't even need to collect single $ from ICO to call it successful. All you need to do is no-KYC bounty and change it to KYC bounty after 2 months.

KYC will not stop scammers. It helps scammers collect more data for thier scams.

[Subbir]

 These aren't usually verified IDs there's no got to KYC in verified IDs, they're so reliable this is often usually a replacement strategy to steal someone else's money. the rationale why KYCs are so dangerous is that they will steal money from our personal information also as spend it on many illegal activities If they use our biodata for other websites there's an opportunity that our ID is going to be hacked by winning So now most are trying to remain faraway from KYC and KYC is becoming useless.

[1miau]

but doesn't mean it's real team ID

This has been noted all too often in the past. Unfortunately it is also no big problem to buy a identity. Recently I read a report about it. I think it cost about $100 for KYC data.

Already posted it here:
50$ for full KYC data (with utility bill)
100$ for new credit card
Real physical fake id - 100$
NEW IDENTITY - 500-1000$ (with birth certificate, ID, driving licence, passport etc.)

Great work @1miau. If you don't mind i would like to do Polish translation.

Sorry, I've totally missed your request. ^^

Of course, I would be happy to get a Polish translation. I've reserved it for you now:

Translations

Local board	translated by
____________________	____________________
Russian	zasad@
French	Perkjeff
Filipino	crwth
Portuguese	cryptobaboon
Turkish	yslyv
Arabic	Ryutaro
Indonesian	masulum
India	erikalui
Romanian (reserved)	GazetaBitcoin
Polish (reserved)	Tytanowy Janusz

Already posted it here:
50$ for full KYC data (with utility bill)
100$ for new credit card
Real physical fake id - 100$
NEW IDENTITY - 500-1000$ (with birth certificate, ID, driving licence, passport etc.)


KYC will not stop scammers. It helps scammers collect more data for thier scams.

Totally agreed here, KYC is making personal data / hacked and already verified accounts a very valuable good, unfortunately. I guess some people are trading it as asset and hope its value will increase, when moon? 

The next step will be 3D printed face masks to fool video verification...
Nice business opportunity for scammers. 

[Vod]

Serious traders should not worry about KYC.  Create a corporation and use that information.

The government only cares about finances.  1)  Collect it's income through taxes and 2) Verify it's expenses (double dipping such as collecting EI and welfare at the same time)

If an exchange does not accept legal corporation information, verify the exchange is operating legally. 

If you give personal info to a non-registered exchange, don't be surprised if you see it online later.  :/

[jademaxsuy]

Yes I do believe that KYC is not really needed in decentrized system. Keeping it anonymous is what this decentralized system is all about. Yet, the government meddle because of security purposes as it has been observe that the cryptocurrency has been subjected to abuse like illegal transactions and other illegal activities.

This is why KYC was being implemented as to give also the government of data or information needed if there are any inquiry among users if there are any doubts that a certain user may doing illegal activities.

Thus, making it dangerous among other users for as we all know that it could be subject for an hijack or hacking the platform which will then enable the hacker to get our important details.

For now, all platform requiring KYC were just promising that important details will be safe but the question is until when could it will be still safe.

[Peanutswar]

Today most of the transactions are required to fill up the KYC and this is just because they want to make sure the security of their platform who is the person making a transaction on them which would like to deposit or pull out their funds but the main problem is some of those platforms requires a valid ID which is you are giving your identity include the address, date of birth, place of birth and etc. Which can be used for identity theft but I'm not included all of the platforms but we cannot deny the risk of your personal information because of it.

Still there are some platform does not require your information just to use their services example are this wallets.

• Electrum
• Coin.space

A BIG WARNING here! STAY AWAY from Binance Free Accounts! At some points, they will freeze your assets and force you to provide KYC. THis happened to me! This Exchange is not serious at all!

AFAIK they are requiring the KYC to level up your account into VIP 1 if you are one of the users would like to withdraw their funds for over 20 BTC but if you are just a normal trader want to exchange your funds and earn a small amount of profit you does not need to upgrade your account and make a KYC.

[JohnBitCo]

A BIG WARNING here! STAY AWAY from Binance Free Accounts! At some points, they will freeze your assets and force you to provide KYC. THis happened to me! This Exchange is not serious at all!

based on my chat with Binance support, frozen account or assets happen because you account got security issue or something else made your account detected unusual. This case can be a good information for all of binance user, especially who don't want to passed KYC. Thank you for sharing, i hope you can get your money back.

If you have no issue in doing the KYC then you should do the KYC on binance and do not operate it as a free account. In some point, if you account is hacked or there is some problem, KYC might help to resolve the issue as you can prove yourself as original owner of the account.

[Leo]

A BIG WARNING here! STAY AWAY from Binance Free Accounts! At some points, they will freeze your assets and force you to provide KYC. THis happened to me! This Exchange is not serious at all!

If you are not doing anything suspicious, your account should not trigger risk management, because when it does, it will definitely freeze your account, I've been using it all this while and got no issues with them, if you are into any suspicious activity stay away from Binance.

[bct_ail]

In some point, if you account is hacked or there is some problem, KYC might help to resolve the issue as you can prove yourself as original owner of the account.

There are many other ways to prove that you are the right holder of your account. Especially if you deal with cryptocurrency there are a well-known method