Why can exchanges freeze account.

[Findingnemo]

Almost you need to pass KYC to use centralized exchanges and it is the only way if you want to trade your cryptos for fiat and vice versa.For trading cryptos there are decentralized exchanges where the trading volume is really low compared to the centralized exchanges and also fee could be a lot.

So if you want to be a trader then you should be ready to do KYC at any time.And the reason for freezing accounts on exchanges are like receiving funds from blacklisted addresses, or what they doubt you involved in any shady activity or money laundering.

yeah right , you need to always prepare and ready to make aKYC  in case you emergency need it there are centralised exchange that you can use even without a KYC but there are daily withdrawal limit . Example of that exchange is binance and kucoin you can use that exchange without a problem if its only for small funds .

They offer withdrawal limits but we can't be 100% sure they will never ask our any personal details, if government made strict regulations they can change their verification system at any time like what happened in Localbitcoins.com last year and in case of any suspicious activity they might lock your account and ask you to prove that you are the real owner of that account.

[Slow death]

Why are exchanges freezing accounts?

exchanges have owners (who are mostly anonymous people but who ironically keep asking customers to do KYC) and unfortunately the exchange owner can block your account whenever he wants

What can I do to make them not freeze my account?

Just make sure you don't break the TOS

What are the best exchanges to use?

Binance, but you said you don't want exchanges that have KYC, so get ready to see your money frozen on those shady exchanges

[conhela]

I have been wondering of people telling me exchanges can freeze accounts, that makes me very afraid to use exchanges to trade,  a friend of mine told me hitbtc freezed his account. That makes me here to ask the reason why exchanges can freeze account.

Why are exchanges freezing accounts?
What can I do to make them not freeze my account?
What are the best exchanges to use?

I like no kyc exchanges, please do not advice me to use any kyc exchange. I prefer exchanges that do not demand for kyc or the ones that makes kyc not mandatory?

The problem with freezing funds is that some people are prone to not giving KYC or similar stuff, privacy reasons and so on. hitbtc is a exchange that doesn't require KYC up front, but if you're withdrawing large amounts of money you're likely to be asked for KYC, and you can't withdraw until you fulfil it. A good way to not get frozen funds is to fill KYC and just follow whatever support responds, people ignore support responses sometimes lol.

[TheUltraElite]

The problem with freezing funds is that some people are prone to not giving KYC or similar stuff, privacy reasons and so on. hitbtc is a exchange that doesn't require KYC up front, but if you're withdrawing large amounts of money you're likely to be asked for KYC, and you can't withdraw until you fulfil it. A good way to not get frozen funds is to fill KYC and just follow whatever support responds, people ignore support responses sometimes lol.

They have a 1BTC cap for withdrawals on non-KYC accounts as per what they have written on their "Verification" page.

As long as you are a small cap trader or a bounty hunter is attempting to sell their tokens you should not have any problem but if you are looking for some serious trading and having a bigger daily volume to trade with then it is not for you. For that go for a exchange which is having some better customer support and less withdrawal fees than Hitbtc and also where you get yourself verified first and link your bank account.

Obviously this is not possible for countries where bitcoin is banned.

[FOPL]

First of all, if you familiarize yourself with what can make them freeze your account you will have an idea of what to do to prevent that. Mostly it will have to do with violation of terms. Probably if they find your activities suspicious.

With regards to KYC almost all exchange require KYC for withdrawal of large amounts. You can trade and withdraw freely without having to pass KYC. I will recommend https://changenow.io/ which is an instant that requires no account creation and KYC making you exchange operations anonymous. You can exchange small amounts and there is no upper limits on exchanges.

[adzino]

I have been wondering of people telling me exchanges can freeze accounts, that makes me very afraid to use exchanges to trade,  a friend of mine told me hitbtc freezed his account. That makes me here to ask the reason why exchanges can freeze account.

Why are exchanges freezing accounts?
What can I do to make them not freeze my account?
What are the best exchanges to use?

I like no kyc exchanges, please do not advice me to use any kyc exchange. I prefer exchanges that do not demand for kyc or the ones that makes kyc not mandatory?

When you create an account, you agree to the terms and condition of the exchange. As long as you don't breach any terms, your account won't be frozen. The terms and conditions explains every act that might cause you to lose access to your account.
Besides the terms and condition of their own website, they have to comply with the AML. So if they see any huge transaction, they usually have to report it to the higher authority and may temporarily freeze the account.