A question about AML KYC

[Mttewndew]

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)?

[mk4]

I'm pretty sure 99% of people here doesn't like submitting KYC/AML information for very obvious reasons. It's just that unfortunately, KYC/AML is required by the government in the US and in some(or most?) countries. So crypto businesses in these said countries really have no choice but to comply or to migrate over to less-strict countries.

Advantages? Yea probably you can get caught a lot easier if you're a criminal, but that's like a very very small percentage of exchange users so I really don't like that the innocent people are the ones having to make sacrifices(by submitting KYC/AML info) to make the government's jobs easier.

[OmegaStarScream]

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.

[20kevin20]

The subject has been discussed here and through articles many times before. Nobody will ever receive personal information from me on a cryptocurrency platform or transaction. You either let me use cryptocurrencies the way they were meant to be used, or I'd rather miss a deal.

It gets harder and harder to avoid giving personal information though. Part of my BTC and alts have been stolen enough times before, but I'm still not giving up and I never will. I want to support the main purpose of cryptocurrencies and to avoid third parties at all, if possible. Hopefully the genius minds out there will successfully develop some systems to sustain exactly this idea so third parties won't be a thing anymore..

[kryptqnick]

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 have mild KYC concerns. I wouldn't want to go through it because I sort of fear identity stealth and data manipulation, but at the same time, I am fine with places that have mild KYC policies and might enforce them if necessary. I believe that it makes sense to require identification if we're talking about a big amount of money (definitely over $1k). Big transactions might indicate money laundering, so it's reasonable to at least know who performs them. If we're talking about a gambler who spends dozens of dollars or something, it's ridiculous and unfair to require identification.

[BrewMaster]

my problem with KYC and AML rules is that they are only a one way protection meaning it protects the business (like the exchanges) from not getting illegal funds or getting scammed,... specially when they work with the banking system that could easily mean a lot of dirty money going into their system.

but there is absolutely no customer protection! it start from our very personal documents being in the hands of a shady business that easily sells them on the dark market! and there is nobody to answer. then whenever the exchange likes they easily scam their customers and call it a hack or simply run away. then there is nobody to cover our losses.

in short it means these laws don't do anything for the customer so nobody should logically want them except the businesses. those businesses that say otherwise are only advertising their service.

[Linkkoin]

KYC/AML are a direct assault on our personal freedoms and should be abolished worldwide.

Unfortunately, it goes opposite - as time goes by, more and more elements to KYC are added. And more and more things are subject to KYC. From bank transfers, cryptocurrency exchanges. This is as well why many authorities are calling for a cashless society, so then all the transactions will be 100% traceable.

[btcholder]

No one in this forum support kyc system. People don't wanna be a puppet anymore to the government or the bank. And crypto currency is the best solution for that. It's sad that some upcoming projects and  popular exchanges want kyc for transaction (big amount). Although they said it's just a step to remove scammers from crypto currency. I don't know how much it worked.

I didn't gave my any document in any exchange. I always avoid those exchange who prefer to kyc. I think it's people rights, to show their personal document or not.

[zulfi125]

KYC purpose is preventing of funds for money launder, and you will see every exchange will require KYC instead of DEX, so I think KYC process should be simple and fast may be online KYC verification is more simple then manually.

[cryptoaddictchie]

No one in this forum support kyc system. People don't wanna be a puppet anymore to the government or the bank. And crypto currency is the best solution for that. It's sad that some upcoming projects and  popular exchanges want kyc for transaction (big amount).

No one support but a lot has been under to it. I dont much prefer giving off personal details so I only did some KYC on some trusted exchange which Im sure they arent 100% but only few centralized exchanges with volume are appealing for me. Yes dex isnt one of them but in terms of trading we cant rely much on it. So there is really big arguement with this topic. It has both advantage and disadvantage, its just a matter of preference for everybody how they will take this topic on hand.

KYC purpose is preventing of funds for money launder, and you will see every exchange will require KYC instead of DEX.

One advantage Im seeing but this isnt always the case for every exchange. Some have evil agenda for Thieving and Scamming so pick wise which one youve gonna share your info.

[Darker45]

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 don't like KYC. It is even an understatement. I actually hate KYC. I agree that KYC requirements significantly repel customers from certain services. And if that happens, the business is indeed affected. Try putting up a sports betting site or online crypto casino with KYC and I am more than sure that it will be lagging behind its competitors that do not ask KYC from its users, if they don't die shortly after launching. In case of exchanges, it has unfortunately become a norm that they ask for KYC, as per legal requirements. But this is only due to the fact that centralized exchanges are the main thing for now. Sooner or later, when decentralized exchanges will take over, KYC will become a thing of the past.

Money laundering is not prevented by KYC. If a certain user is enrolling an account because he/she has something to launder, do you think he/she will provide his/her real personal information? He/she must be a foolish launderer if he/she does that.

[pooya87]

more and more things are subject to KYC. ~ cryptocurrency exchanges.

this is only the case when people go to "centralized places" to exchange a "decentralized thing". otherwise cryptocurrency trading is never going to require KYC specifically when you are exchanging cryptocurrency with cryptocurrency instead of with fiat.
check out the real decentralized exchanges and see how the lack of KYC looks like.

[senin]

In some cases, KYC verification when working with cryptocurrency is necessary. However, they began to demand it from us for any reason and for any transaction amounts, and this caused people to sharply reject it as a necessary procedure in some cases.
In addition, they began to introduce it too early, before the subjects, procedure and conditions of its implementation were regulated at the legislative level. Therefore, unknown teams of ICO projects, without registering themselves anywhere and often being scammers themselves, collected our confidential information and then sold it on the Internet. Of course, nobody will like it.
Considering that the states will license this type of activity in some cases for legal entities, and the KYC check will be carried out only for transactions over one thousand euros, according to the FATF recommendations of June 21 last year, in these cases KYC will be appropriate.

[davis196]

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)?

It's a myth that KYC helps prevent money laundering.Do you know how easy it is to get the personal data of someone else,if you are a hacker or criminal?You could pay some poor homeless man to give you his ID for a while,you could hack some PC and get all the personal info.How can a crypto exchange platform prove that you are submitting your own ID card?KYC really repels customers and stops mass cryptocurrency adoption.Government clerks should try to find a better regulation that replaces the "know-your-customer" policy.

[Ucy]

Why use the current kyc model in a space that is full of people who privacy/anonymity conscious? Those who believe in the current kyc should probably get their customers from people who are OK with it. The customers will most likely be made mostly of people who are somewhat desperate, don't know why they are here nor understand what Cryptocurrency is about.

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

[Ozero]

In the current situation, in order for the cryptocurrency to be able to further develop, KYC verification in strictly stipulated cases is necessary. We already see to what level of fraud the absence of any rules in the cryptocurrency market led to. In addition, states will be forced to prohibit the circulation of cryptocurrency on their territory if it uncontrollably contributes to the financing of terrorism and other crimes due to its relative anonymity. Therefore, for legal entities, in some cases, licensing for working with cryptocurrency should be introduced, and the KYC check should be applied exclusively to large amounts of transactions.

[Wind_FURY]

OP, I hate KYC, and have been recommending the use of BISQ, and other centralized services that don't have, or have minimum KYC, https://bitcointalk.org/index.php?topic=5180421.0

Never say that you have no choice, because there's a choice. BISQ. Sometimes giving worse rates, but that's the price of no-KYC.

[The Cryptovator]

Sound of KYC and anonymity is conflicting. I am not big fan of KYC procedure. I don't know exactly what is the goal of KYC. As they mention about money laundering but I can't see much connection with KYC & money laundering. And unfortunately most of big volume exchanges are requiring KYC. So since trading there quite good from decentralized exchange traders are forced to submit KYC even they do not like it. To be honest this wasn't the goal of Bitcoin or cryptocurrency's.

[xvids]

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.

[buwaytress]

Yeah, I'm honestly also at odds here with how I perceive my privacy and personal data. On one hand, I think we should all guard our information as much as we can, but on the other, I also think we have a responsibility, as a business, not to help facilitate criminal activity. And this goes beyond just tax evasion, but terrorist financing etc.

So my compromise is, if I have to use a financial service, then I'll abide by the laws. So I'm verified, fully, at the exchange I depend on a lot for fiat exchange. But if I can, and I actively seek this out, use bitcoin itself to pay for things, I would. And there, I don't need anyone to tell me I have to KYC.