A question about AML KYC

[jumail]

I am selective in doing KYC, inevitably I have to do that if I want to get services from an exchange for example. However, I'm selective, I only choose exchanges that have a high level of trust. Fortunately, some exchanges that are of poor quality don't require KYC to withdraw under 1 BTC, so that's no problem. If it has become the terms and conditions then we inevitably have to obey it, on the other hand, it is very useful to confirm if there is a problem in your account.

[1713972288]

1713972288

[Ozero]

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)?

KYC, of course, is a very negative point for cryptocurrency users. However, in certain cases one cannot do without it. It is not necessary to pass KYC on the exchange when registering, but when the transaction amount exceeds one thousand euros. If I go to the stock exchange and make small transactions, it makes no sense to demand KYC from me.
At the same time, we must understand that states will restrict or even prohibit the circulation of cryptocurrency if it is completely anonymous and they cannot control it.

[johnyj]

After so many years buying and selling coins on OTC market, my observation is that KYC is a must for any larger amount of purchases like more than 30 USD. Because if you don't do it, then a single man-in-the-middle fraud scheme will send money from many many victims all to your account and the fraudster get away with bitcoins, and you end up being called by police to explain everything

Unfortunately, even that is only one fraudster out of 1000 legit customer, if let it go unchecked, 90% of your sale volume will be driven by this guy

It is not that anything less than 30 USD is immune to fraud, still can be a fraud, but it will cost the fraudster significantly more energy and the return is limited, and people most likely won't call police for a loss of 30 dollar

Anything, if money related, will first attract frausters, since that is the easiest way to get money, unfortunately that is the world we are living in

Recently these kind of fraud takes a new form of bitcoin investment scheme, so that people buy coins and send to the fraudster, which pretended to be a large institution in some tax haven country. Even KYC can not stop this kind of fraud

[nosferzd]

Many, of course, will be against KYC, since no one wants their personal information to be provided to intelligence agencies. Indeed, many exchanges simply collect databases on cryptocurrency holders, leaks often occur. But on the other hand, the KYC procedure helps to avoid financial thefts, because criminals will not be able to confirm their right to stolen tokens.

[koang]

It is not necessary to pass KYC on the exchange when registering, but when the transaction amount exceeds one thousand euros. If I go to the stock exchange and make small transactions, it makes no sense to demand KYC from me.

Agree. I would not want to do KYC if only for small transactions, I would prefer OTC

At the same time, we must understand that states will restrict or even prohibit the circulation of cryptocurrency if it is completely anonymous and they cannot control it.

I think crypto crypto cannot be more anonymous than cash and will not complicate the procurement of criminal investigations if needed.
the reason for prohibition crypto in some countries in my opinion is caused by excessive fear of something new
Blockchain is a new technology and policy makers need time to find ways to integrate this new technology with formal financial system regulations

[thesmallgod]

it is not the problem of the exchangers but the government that requires it as part of the condition for having a business in the countries where the exchange platform is based. Also, issue relating to money laundering is a serious offense and it could be perpetuated through the use of crypto too so I think it is part of the reason why AML/KYC compliance is needed

[BayAreaCoins]

it is not the problem of the exchangers but the government that requires it as part of the condition for having a business in the countries where the exchange platform is based. Also, issue relating to money laundering is a serious offense and it could be perpetuated through the use of crypto too so I think it is part of the reason why AML/KYC compliance is needed

KYC may help the forums stop these type of shit posters who are just trying to earn a little coinage off their signature.  

Jk

[Youghoor]

Adam might surely has his own reasons for avoiding the use of KYC which is to ensure the absolute privacy of its customers. Know Your Customer security checks are good and it helps secure against any form of illegal withdrawals. Also, in cases where there is a breach of the exchanges wallet stolen funds can be traced and get to know the accounts that made the withdrawal. Frankly speaking, I don't like trading on exchanges that don't ensure that members perform KYC.

[elenag442]

Why is the KEC model so safe / unclear with people being understood by so many people in such a place? In the current KIC, trusted individuals should probably take their clients from affiliated affiliates. It is possible for clients to fully create people who care about the emergency who are here.