A question about AML KYC

[enhu]

Is Digitex not asking for KYC?

I don't see any exchange today that doesn't ask KYC anymore. It wouldn't stop laundering though because they still can getaway with it by using the data of someone else. Anyone can simply scan documents of a person and submit it to the exchanges and they are already good to go.

[Mttewndew]

or simply register with any email, but knowing that you might be one of the 0.1% and might be asked to confirm your identity (as it is now with Changelly)?

This ^ is interesting
 I wonder how they determine who should do the kyc. Who knows the amount of data at their disposal. I will be a bit careful with this.

I honestly prefer a Crypto-friendly kyc model. No one should see or have access to my sensitive information. This is to avoid misuse and it getting hacked. I think the community should probably decide on what model is safe for them if using kyc becomes necessary

As far as I know, they often refer to their KYC/AML policy, which describes the cases when a transaction may seem suspicious. Still not ok for me as an adherent of anonymity, but the chances are quite low, so... I just remember me pissing off at Shapeshift who asked for my id even before I looked closer at their service. Binance goes to the same list.
My point is - I can understand the reasons why people on the forum may not trust Changelly and other services who may require your id in some cases, but I see no value in getting small amount of random people's personal data. If companies like changelly would be selling user's data, they'd make the whole KYC procedure obligatory.

[Linkkoin]

As far as I know, they often refer to their KYC/AML policy, which describes the cases when a transaction may seem suspicious.

The AMLP rules from eg. European directives and FATF guidelines use such forms without further specification "transaction showing unusual patterns", "without clear economic purpose", and often as well all of the transactions of at least $1000 each (but technically as well few transactions for $1000 in total over a short period of time count). The rules are not 100% clear but considering the guidelines spirit it simply requires companies to be suspicious towards their customers, especially if they use VPN services.

[Coin-Keeper]

I don't think you will find many members here that are in love with KYC/AML.  I am glad to have acquired most of my  BTC long before this issue became a thing.  For now when I need to use/spend I simply use an exchange and convert BTC to XMR.

[TheNewAnon135246]

I don't think you will find many members here that are in love with KYC/AML.  I am glad to have acquired most of my  BTC long before this issue became a thing.  For now when I need to use/spend I simply use an exchange and convert BTC to XMR.

Any offramp to fiat will require KYC at some point, unless you're comfortable using P2P exchanges like Hodlhodl.

[Ryutaro]

basically what KYC does is destroying our privacy and security. All that has been done all these years to strengthen our privacy from creating personal accounts to adding secret message, phone verification, 2FA authentification, biometric data... all that can be undone, simply because hackers have succeeded into stealing KYC materials from these exchange and hackers can use that to do all kind of bad things (reset your accounts, impersonate your identity...).

[bithisach]

I think it's pretty clear that KYC defeats the whole purpose of bitcoin/crypto. It makes no sense to sacrifice your identity to use something pseudonymous.

Also, we have many decentralized/P2P platforms as alternatives...

Trading fiat? LocalCryptos/BISQ
Alts? See this list.
etc.

Sadly, people don't look at these options simply because they're not as convenient and fast as the centralized exchanges.

While I agree that KYC defeats the purpose of crypto - It's a compromise that these platforms have decided we need to make if we want to enjoy their services. Think of it this way, the GOV asks for exchanges to be compliant or to get out of their jurisdiction. Reasons why some platforms prefer certain jurisdiction is, well, up to each platform. So they acquire their legislations and implement them on the platform. You don't want to give KYC? They you probably are best off looking for a P2P alternative albeit keep in mind that rates usually suck for FIAT pairs on P2P platforms (at least in my experience), what I'd suggest is either go full crypto that you don't need FIAT for anything else in your life (hard at the moment) or go out and VOTE so that your government faces the truth that we don't like being spied on. It's hardly the platform's fault, rather, the governments.

[Wind_FURY]

I think it's pretty clear that KYC defeats the whole purpose of bitcoin/crypto. It makes no sense to sacrifice your identity to use something pseudonymous.

Also, we have many decentralized/P2P platforms as alternatives...

Trading fiat? LocalCryptos/BISQ
Alts? See this list.
etc.

Sadly, people don't look at these options simply because they're not as convenient and fast as the centralized exchanges.

While I agree that KYC defeats the purpose of crypto - It's a compromise that these platforms have decided we need to make if we want to enjoy their services. Think of it this way, the GOV asks for exchanges to be compliant or to get out of their jurisdiction. Reasons why some platforms prefer certain jurisdiction is, well, up to each platform. So they acquire their legislations and implement them on the platform. You don't want to give KYC? They you probably are best off looking for a P2P alternative albeit keep in mind that rates usually suck for FIAT pairs on P2P platforms (at least in my experience), what I'd suggest is either go full crypto that you don't need FIAT for anything else in your life (hard at the moment) or go out and VOTE so that your government faces the truth that we don't like being spied on. It's hardly the platform's fault, rather, the governments.

It's not a compromise. It's their way to monitor you. We should make an effort to push them back by actually using decentralized solutions like BISQ. Make it a social movement.

[UserU]

basically what KYC does is destroying our privacy and security. All that has been done all these years to strengthen our privacy from creating personal accounts to adding secret message, phone verification, 2FA authentification, biometric data... all that can be undone, simply because hackers have succeeded into stealing KYC materials from these exchange and hackers can use that to do all kind of bad things (reset your accounts, impersonate your identity...).

It really sounds like an oxymoron. Just like how Bitcoin is meant to be anonymous but authorities are trying to regulate it.

[gundala]

I linked this thread:Why KYC is extremely dangerous – and useless to reference material related to KYC, the information was quite clear and explained the explanation related to risks that might occur when we are not wise in doing KYC.

KYC in crypto doesn’t necessarily help to stop money laundering or reduce criminal activity; nor does it help to prevent terrorist financing. On the contrary - KYC endangers our privacy and encourages criminal activities (via KYC scams, identity theft and other means).

We really need to be wise in providing personal data to avoid things that can harm us in the future. It could be that our personal data is sold by people who are not responsible, and of course it is very dangerous to our accounts that are connected with personal data, including bank accounts, electronic wallets, etc., this can open the gaps of hackers and scammers.
My advice, don't use your personal data only for worthless airdrops. Be wise in choosing a trusted exchange globally.

[pixie85]

To be honest I don't really like the KYC but if it would help a lot to solve some problems then why not.
The only problem that I see is that there are so many people who could cheat the KYC process.
I like crypto because of it's anonymity but I guess there would always be a problem regarding to the anonymity and illegal use of crypto that is why KYC is being implemented.

No user likes KYC. Business owners also don't like KYC because it's an unneeded chore.

The only people who like KYC are all those office clerks maning desks at the IRS and similar government offices.

KYC doesn't work because smart scammers buy IDs. They buy whole stolen databases and register as other people. If you did KYC chances are they are already using your documents elsewhere.

[shoreno]

To be honest I don't really like the KYC but if it would help a lot to solve some problems then why not.
The only problem that I see is that there are so many people who could cheat the KYC process.
I like crypto because of it's anonymity but I guess there would always be a problem regarding to the anonymity and illegal use of crypto that is why KYC is being implemented.

No user likes KYC. Business owners also don't like KYC because it's an unneeded chore.

The only people who like KYC are all those office clerks maning desks at the IRS and similar government offices.

KYC doesn't work because smart scammers buy IDs. They buy whole stolen databases and register as other people. If you did KYC chances are they are already using your documents elsewhere.

no user like kyc but lets faced it we already done a kyc before , it cant be related to crypto or lately when were involved on crypto because other wallets and services require kyc  .

 i have done a kyc on a crypto wallet that i use because i dont have a choice , this is the only wallet that is popular and easy to use on our country   . a legit company wont not spread your data but if you think that is risky for your side then better if you dont do it and find other alternatives    . you are not forced tho

[Twinkledoe]

To be honest I don't really like the KYC but if it would help a lot to solve some problems then why not.
The only problem that I see is that there are so many people who could cheat the KYC process.
I like crypto because of it's anonymity but I guess there would always be a problem regarding to the anonymity and illegal use of crypto that is why KYC is being implemented.

No user likes KYC. Business owners also don't like KYC because it's an unneeded chore.

The only people who like KYC are all those office clerks maning desks at the IRS and similar government offices.

KYC doesn't work because smart scammers buy IDs. They buy whole stolen databases and register as other people. If you did KYC chances are they are already using your documents elsewhere.

But you have no choice if you want your crypto to be converted it to your local fiat. Most of the local exchanges or remittance centers require KYC like showing your valid ID. Unless you will change your crypto to fiat with other means and that I think is not secure. But you can choose which exchange you can submit that doc, at least verify it is a legit business to avoid falling your doc in wrong hands.

[pixie85]

no user like kyc but lets faced it we already done a kyc before , it cant be related to crypto or lately when were involved on crypto because other wallets and services require kyc  .

 i have done a kyc on a crypto wallet that i use because i dont have a choice , this is the only wallet that is popular and easy to use on our country   . a legit company wont not spread your data but if you think that is risky for your side then better if you dont do it and find other alternatives    . you are not forced tho

Most of us did it when we set up a bank account but there are alternatives. Some online banking systems like Revolut require only the most basic information.

We still have a lot to say in this matter. I've never did extensive KYC like the one where they require you to take a selfie with your ID or participate in a video conference.

But you have no choice if you want your crypto to be converted it to your local fiat. Most of the local exchanges or remittance centers require KYC like showing your valid ID. Unless you will change your crypto to fiat with other means and that I think is not secure. But you can choose which exchange you can submit that doc, at least verify it is a legit business to avoid falling your doc in wrong hands.

Have you heard about p2p trading or physical exchanges where you come in with your phone and leave with cash? ATMs also require minimum data.
There are ways to get fiat without KYC.

[BayAreaCoins]

We don't KYC on FreeBitcoins.com because we don't deal with fiat or anything that tries to act like fiat (stable coins).

As I understand it, we would be subject to a lot more regulation if we did so because it taps into resources/investors that have faith in the backing of those systems (regulations).

You need to choose which system fits well for you in that regard or figure out how to spend your Bitcoin accordingly.

I think a business that uses KYC at their will are close to criminals.  It shouldn't be a guessing game or bullshit made up rules like what Poloniex tried to do.

[UserU]

We don't KYC on FreeBitcoins.com because we don't deal with fiat or anything that tries to act like fiat (stable coins).

As I understand it, we would be subject to a lot more regulation if we did so because it taps into resources/investors that have faith in the backing of those systems (regulations).

You need to choose which system fits well for you in that regard or figure out how to spend your Bitcoin accordingly.

I think a business that uses KYC at their will are close to criminals.  It shouldn't be a guessing game or bullshit made up rules like what Poloniex tried to do.

I just noticed that Freebitcoins.com charges 1 Bitcoin for a faucet listing. Is the listing permanent or time-restricted?

[BayAreaCoins]

We don't KYC on FreeBitcoins.com because we don't deal with fiat or anything that tries to act like fiat (stable coins).

As I understand it, we would be subject to a lot more regulation if we did so because it taps into resources/investors that have faith in the backing of those systems (regulations).

You need to choose which system fits well for you in that regard or figure out how to spend your Bitcoin accordingly.

I think a business that uses KYC at their will are close to criminals.  It shouldn't be a guessing game or bullshit made up rules like what Poloniex tried to do.

I just noticed that Freebitcoins.com charges 1 Bitcoin for a faucet listing. Is the listing permanent or time-restricted?

Permanent. (until we go out of business or whatever, but no plans on that we have been slowly but surely growing since 2015 under my leadership.)

We can wave that 1 BTC listing fee if we think the affiliate program would be better for us long term.

We reserve the right to not list a website though (like we rejected Stake.com because their TOS is sketchy af.)

Thanks for inquiring <3.  

[UserU]

Permanent. (until we go out of business or whatever, but no plans on that we have been slowly but surely growing since 2015 under my leadership.)

We can wave that 1 BTC listing fee if we think the affiliate program would be better for us long term.

We reserve the right to not list a website though (like we rejected Stake.com because their TOS is sketchy af.)

Thanks for inquiring <3.  

No worries, appreciate your response.

Stake's TOSis sketchy? That's... interesting, seeing that they're quite popular here.

[South Park]

The CEO of Digitex exchange Adam Todd decided to publicly oppose the KYC system, believing that this system only repels customers from the service and destroys the business. I myself am not a big fan of KYC, but it is definitely not without meaning and helps to prevent laundering and so on. I wonder what goals he can actually pursue by making such a decision.

What do you think about KYC and its appropriateness? Do you separate KYC by the types? Like going through KYC to just get the access to exchange platform (as it is now with Shapeshift), or simply register with any email, but knowing that you might be one of the 0.1% and might be asked to confirm your identity (as it is now with Changelly)?

I understand why KYC is implemented but I do not have to like it or even be in favour of the measure, to me it is a very lazy approach to try to catch those that are doing bad things with cryptocurrencies, after all they could always fake their documents and keep doing their illegal activities while the 99.99% of the people in this market that are not doing anything wrong now have to deal with all kind of difficulties just to get their accounts approved and begin to use an exchange.

[BayAreaCoins]

Permanent. (until we go out of business or whatever, but no plans on that we have been slowly but surely growing since 2015 under my leadership.)

We can wave that 1 BTC listing fee if we think the affiliate program would be better for us long term.

We reserve the right to not list a website though (like we rejected Stake.com because their TOS is sketchy af.)

Thanks for inquiring <3.  

No worries, appreciate your response.

Stake's TOSis sketchy? That's... interesting, seeing that they're quite popular here.

Just because something is popular on Bitcointalk doesn't mean it isn't sketchy! Bahaha  

Stake.com affiliate system is sketchy.  They contacted us and offered 30% rev share.  However, after we did the work and I noticed on the last page of their affiliate information that it basically says that they can hold whatever out of your pay for bonuses and stuff... so affiliates really get shafted royally and are unable to balance their accounts to make sure they are paid fairly.  Mega sketchy.  

If you offer me something, I expect it to be like that... not have fine print with lose terms that say you can take our stuff willy nilly.