[Survey]Do we need to provide KYC documents in any cryptocurrency exchanges?

[kashiwagiyuki]

Currently, most of the exchanges (CEX) are KYC required. As we all know, most of the crypto currencies (especially bitcoin) are decentralized and anonymous.

Why should those exchanges collect our personal information? Do you think KYC is necessary?

I'm doing a research, and made a survey, so can anyone be interested in this topic share your opinion? Thanks.

Here is the survey link: https://forms.gle/rMeMZf7S1jo8bMwt5

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[1715262925]

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[mk4]

As we all know, most of the crypto currencies (especially bitcoin) are decentralized and anonymous.

That's where you're wrong buddy. It's actually the reverse. Pretty much all cryptocurrencies(yes, even Ethereum) besides bitcoin is centralized, and probably 99% or more of cryptocurrencies are only pseudonymous.

Why should those exchanges collect our personal information? Do you think KYC is necessary?

If you ask me, of course I wouldn't want to submit KYC. But the fact is, most governments of these countries that these exchanges operate on requires KYC. It's not like most of them require KYC just because they want to; most of them are just following the government requirements.

[Salauddin1994]

I agree with you that you do not need to kyc on trusted sites to exchange crypto those who use anonymous sites and introduce kyc in case of scams there is not much need to provide kyc documents in cryptocurrency exchanges. It is better to stay away from the sites that make kyc compulsory they try to hack into personal information the number of scams has increased due to the growing demand for crypto so most traders do not trust kyc exchange sites..

[ralle14]

Some exchanges didn't require any KYC from the start but like mk4 said the rules have changed now that the exchanges are monitored by the government. As much as I hate KYC it's becoming a necessary at this point since it's a matter of having a better trading experience or your money getting released if the exchange just updated their rules. It's always better to avoid KYC but it's impossible when most of them forces you to provide KYC right away.

[pooya87]

it depends on the type of the exchange.
i have no issue with submitting KYC with a fiat related exchange where you deposit your fiat to buy bitcoin for example. because that is a fiat related issue that has to also affect bitcoin exchange too.
but if it is an altcoin exchange where you trade altcoins versus bitcoin then there simply is no reason to ask for KYC at all.

there is also the issue with weak security of exchanges and their shadiness that adds a certain risk level with submitting your personal information that can easily leak or be sold on darknet!

[crwth]

I had already answered your survey, and some questions should've had a middle question, not just yes or no. For example, the question "will you trade on the platform if KYC is required?" it depends on the exchange's reputation, etc. Your data that will have gathered will have more flexibility and a realistic approach. It should have an "Other" option then remarks on it.

[Simakura]

Many of the exchanges require KYC, but some don't like binance without kyc already being able to trade. But KYC is very necessary to maintain security For example, when you lose 2FA, KYC accounts will be easy to handle

[NeuroticFish]

Why should those exchanges collect our personal information? Do you think KYC is necessary?

It depends a lot by the exchange's profile.
If the exchange works with fiat, the legislation asks it to collect KYC info. If it doesn't it's an illegal business.
If the exchange doesn't work with fiat, I think that it can work without KYC in many countries (?).

Many point to Binance as example. I think that they've somehow avoided the law by using 3rd party operators (afaik) for their fiat operations. It's a solution, but I don't know how long it'll work. Binance also asks for KYC if people want their debit cards or big transfers.

The real problem is that there are so many exchanges (and other businesses!) asking for KYC although they can live without it (and some "businesses" only exist as long as they can get KYC details they can sell!).
Another real problem is that many people give out their KYC without thinking much, sometimes only to get a few dollars (or cents!) worth of tokens. Or enroll to all (big or small) exchanges (with KYC) without thinking twice. At some point one will be sloppy (or with bad intentions) and problems will happen.

[kashiwagiyuki]

As we all know, most of the crypto currencies (especially bitcoin) are decentralized and anonymous.

That's where you're wrong buddy. It's actually the reverse. Pretty much all cryptocurrencies(yes, even Ethereum) besides bitcoin is centralized, and probably 99% or more of cryptocurrencies are only pseudonymous.

Why should those exchanges collect our personal information? Do you think KYC is necessary?

If you ask me, of course I wouldn't want to submit KYC. But the fact is, most governments of these countries that these exchanges operate on requires KYC. It's not like most of them require KYC just because they want to; most of them are just following the government requirements.

Lol, you are right. I made a mistake. Only BTC isn't under the ctrl of someone like the founder Nakamoto Satoshi, and no one knows who is him.

[avikz]

Currently, most of the exchanges (CEX) are KYC required. As we all know, most of the crypto currencies (especially bitcoin) are decentralized and anonymous.

Why should those exchanges collect our personal information? Do you think KYC is necessary?

I'm doing a research, and made a survey, so can anyone be interested in this topic share your opinion? Thanks.

Here is the survey link: https://forms.gle/rMeMZf7S1jo8bMwt5

Who said all cryptocurrencies are anonymous and decentralized? Get your facts right!

Exchanges will require the KYC details because they are legal business entity. They have a base of operation and they have to abide the law of that country. KYC details is an integral part of any financial service you want to take around the world. So these exchanges have no choice other than asking for your KYC details.

Bitcoin and other cryptocurrencies are just a financial instrument for these exchanges. But the exchanges are mostly governed by the regulatory agencies!

[davis196]

Currently, most of the exchanges (CEX) are KYC required. As we all know, most of the crypto currencies (especially bitcoin) are decentralized and anonymous.

Why should those exchanges collect our personal information? Do you think KYC is necessary?

I'm doing a research, and made a survey, so can anyone be interested in this topic share your opinion? Thanks.

Here is the survey link: https://forms.gle/rMeMZf7S1jo8bMwt5

The exchanges collect our information because KYC policies are required by the authorities,so all the crypto trading platforms and their customers have to abide by the law.
I think that KYC policies are helping for fighting money laundering and illegal financial activities.KYC policies aren't perfect,but if there was no KYC,the cases of money laundering,financial crimes and scams would be way more.I'm not talking only about the crypto industry.I'm talking about the fiat financial system as well.

[pooya87]

~
Lol, you are right. I made a mistake. Only BTC isn't under the ctrl of someone like the founder Nakamoto Satoshi, and no one knows who is him.

that is only a very small part of it not all. the real reason why bitcoin is considered decentralized (while many others aren't) is 100k+ full nodes coming from all around the world, lots of miners that also come from all around the world, the algorithm being PoW that provides more decentralization specially with this high difficulty and spread of miners compared to something else like PoS, no premine, no fundraising scam such as ICO, forks (aka upgrades) that have always gone through only after reaching supermajority support, decentralized development from lots of contributors, ...

[XZERO1]

When cryptocurrencies was just in the start of their way and wasn't quite as popular almost all of the exchanges did not require KYC but now almost all of the centralized exchanges require KYC at some point, maybe if you are trading in smaller amount you wouldn't need to do KYC but for bigger amounts you definitely need to complete KYC verification, that is the main reason behind the increasing popularity of Uniswap and other platforms like that.

Why should those exchanges collect our personal information? Do you think KYC is necessary?

Some of them need KYC information because of their government requirements and otherwise they wouldn't be able to continue working there and some other exchanges need users to pass KYC so that they simply can sell those information on black market, those information that people provide them with aren't cheap either since I believe there is a good demand for such information.

[mk4]

Lol, you are right. I made a mistake. Only BTC isn't under the ctrl of someone like the founder Nakamoto Satoshi, and no one knows who is him.

Yeap. Even though chances are that Satoshi has a crap ton of bitcoin, not even Satoshi Nakamoto himself has control over the Bitcoin network. No sole entity has; and that's what Bitcoin has over every single altcoin in existence.

[death69]

As we all know, most of the crypto currencies (especially bitcoin) are decentralized and anonymous.

That's where you're wrong buddy. It's actually the reverse. Pretty much all cryptocurrencies(yes, even Ethereum) besides bitcoin is centralized, and probably 99% or more of cryptocurrencies are only pseudonymous.

Can you be more specific about your thought here. I want to be enlightened. Why and how are they centralized?

Why should those exchanges collect our personal information? Do you think KYC is necessary?

Well, opening an exchange is not as easy has you thought. You need to follow strictly the regulations. Otherwise, you will be banned from operating your business in your locale. Therefore, providing KYC is obligatory. However, there are still exchange that are decentralized and P2P. You can try them if you want to avoid giving your identity

[mk4]

Can you be more specific about your thought here. I want to be enlightened. Why and how are they centralized?

1. Ethereum has far less nodes compared to Bitcoin simply due to the multi-terrabyte space required to run an Ethereum node.
2. Ethereum in it's entirety is pretty much just Vitalik Buterin + Consensys. There's a reason why Satoshi Nakamoto left the project early on, and that's to spread out the development and to remove biases from him.
3. The reversal of the Ethereum DAO hack. That itself is a red flag.
4. Don't even get me started on other altcoins as they're FAR worse. Pretty much just single teams having control over the entire networks.

[Wexnident]

I'm not particularly a heavy trader, so I've never really needed to provide KYC whenever I trade, I mostly do my trades in Binance and so far no prompts about needing KYC were required for me to do so. Still, If I were prompted to give KYC to every single site I would need to use, I'd rather not to. I mean, who wouldn't prioritize not giving their personal info to others right? But if rightfully needed, I suppose I wouldn't have qualms about it. I personally don't want to, but if it's a requirement, I'm down for it.

Why should those exchanges collect our personal information? Do you think KYC is necessary?

The Law. A requirement of sorts, is it necessary? In my eyes probably no, but they look at the perspective of anything that could happen kind of thing. An exchange may host hacked coins so having KYC for users could easily help in pinpointing that. Iirc, the recent twitter scam was traced due to the scammers sending coins towards exchanges then withdrawing them without even going through mixers. Might not be the entire story, but I'm pretty sure it's close.

[Alucard1]

Why should those exchanges collect our personal information? Do you think KYC is necessary?

Actually, it depends on the exchange because some of the exchange does not require you to input your personal information, even me I don't want KYC because there are a lot of fake websites that really looks so real and when you input your personal information then something bad may happen on you. your account may be hacked or they may use your personal information for their personal purposes but sad to say we need KYC before we login into specific website, we cant do things about it because they are just following the governments.

[cryptomaniac_xxx]

Currently, most of the exchanges (CEX) are KYC required. As we all know, most of the crypto currencies (especially bitcoin) are decentralized and anonymous.

Why should those exchanges collect our personal information? Do you think KYC is necessary?

It's because exchanges fall on the category of VASP (Virtual Asset Service Providers) and as such as FATF
exchanges needs it's costumer's KYC to be fully compliant.

So for majority this pose a serious problems because obviously, we don't want our personal data to be subjected to this exchanges are there are also history of leaked KYC in the past.

[mersal]

I am not taking your servey but answered on the poll.I fyou ask is this necessary to provide KYC documents for centralized exchanges then I will say yes because for a company to get approval on a country they need to follow certain regulations so they have mo other choice to follow them.

But as a user they can decide whether they want to give documents or going to use decentralized exchanges so they can maintain their anonymity even while trading as well.