KYC - IDENTITY VERIFICATION or IDENTITY THEFT

[ChuckBuck]

Hello everyone!

Today, I'm here to talk a little about the KYC issue with any platform, especially cryptocurrency platforms. As you know, KYC is something that you often have to do on exchanges, by doing KYC, you can unlock some of the features and limit trading/withdraw amount for each of their accounts. So is this really necessary? the answer is NO, usually, the exchanges provide their clients with a sufficient trading limit, even if they do not do KYC, unless you are a day trader, and you trade with a large amount of money everyday.

However, the point that I want to talk about here, it is not KYC on exchanges, but KYC on other platforms, since KYC on exchanges won't bring any consequences, it's still good. As you know, cryptocurrency works on blockchain, and anonymity is its prerogative. No one can figure out who you are and what you're trying to do with that transaction. And KYC is partly losing that anonymity, therefore, KYC should only be performed when absolutely necessary.

I go to an example, maybe participating in IDO/ICO on a certain project, and they limit the participation of some regions, so KYC is necessary. Do you see a few people who regularly go to this forum and pay you to verify their accounts? They can't verify the account themselves, because it's a region restriction. So, your identity is really important and valuable, it can be used illegally, and you may be involved in some legal problems, although this is rarely the case.

You may not know, Pi Network is a fake blockchain platform, it may not be popular here, but it is very popular in other country, namely Vietnam. Thousands, tens of thousands of people have joined the platform and done their identity verification on the platform, many even investing money into it. And a scam platform will definitely take all your money, and your identity too, this platform used the user's identity and sold it on other social platforms, which is very dangerous.

So guys here, newbies, never take KYC lightly, be careful when doing it, especially for shady platforms. You have no idea what they're trying to do with it. Be careful with any platform, you can lose money on your investment, it's normal, but don't get into legal problems, you wouldn't want to be penalized for someone else's actions, would you?

In short, be careful, stay as anonymous as possible in the crypto space!

[Charles-Tim]

As you know, KYC is something that you often have to do on exchanges

As you know, KYC is something that you often have to do on centralized exchanges.

since KYC on exchanges won't bring any consequences, it's still good.

Kyc on exchanges can result to phishing attempt, especially during data breach, we are in the world that peoples information are used against them during phishing attacks, it is possible that some phishing attacks are actually as a result of data breach on these exchanges. See what Ledger data breach caused, even when it is a hardware wallet manufacturing company. Giving out kyc on any platform has its own risk, exchanges included.

As you know, cryptocurrency works on blockchain, and anonymity is its prerogative.

It will be good if you use pseudonymity because the transactions can still be seen on blockchain but not linked to users.

[tranthidung]

• Why KYC is extremely dangerous – and useless
• How KYC/AML poses a serious threat to your privacy and should not be used at all
• Be careful with your KYC documents
• The Unseen Danger of KYC

People are greed and easily accept any KYC with a hope to get rich quickly. Unfortuantely, when privacy is lost, you will never be able to get it back. Your identity can not be erased on the Internet if it was leaked and spread around.

That excellent topic and three referenced articles are enough to answer your question.

[StonerStanley]

• Why KYC is extremely dangerous – and useless
• How KYC/AML poses a serious threat to your privacy and should not be used at all
• Be careful with your KYC documents
• The Unseen Danger of KYC

People are greed and easily accept any KYC with a hope to get rich quickly. Unfortuantely, when privacy is lost, you will never be able to get it back. Your identity can not be erased on the Internet if it was leaked and spread around.

That excellent topic and three referenced articles are enough to answer your question.

As a software and game engineer, KYC is very helpful to lifeban cheaters and make them cry 

But if you want to lose your cryptocurrencies by playing against a cheater, you can play with people who haven't their identity checked and who are playing on servers where our anti-cheat is turned off to avoid cheaters creating multiple account in order to understand the behavior of our anti-cheat then bypass it (so yes, only the verified player are playing on servers with anti-cheat). You guys obviously don't know anything about security and programming, you may be an engineer in toilet paper.

Talk is cheap for people who don't do anything for the world, what is useless is the thread you shared, Even if it's true: there are some danger and we need to improve the internet security and surveillance.

Nasty criminals and pedophiles aren't ok with that, i know but i'm not ok with them.

(it's not that hard to steal people ID cards and documents without internet, it's very easy... no need to hack a database,  it's more easier to break your door or pockets than most servers over internet)

Instead of saying: We should spy internet and secure it from criminals.
You guys are literally saying that we should simply move away from some services just because criminals would try pirate it in order to steal your identity .... instead of saying that we should improve the security over internet, that we should check the identity of EVERYONE over internet so nobody can steal you/hack a database without being tracked and arrested.

[lovesmayfamilis]

There is little hope for anonymity on the Internet, but despite this, you need to try to stick to it. You shouldn't go through identity checks for any IDO / ICO. Some scammers resell your documents, and in the future, you can get into many unpleasant stories related to your docks.
I recently read a good article about the fact that even the TOR, which many have high hopes for, has a vulnerability through which user data can be de-anonymous.
https://fingerprintjs.com/blog/external-protocol-flooding/
It is difficult to talk about network security, at a time when even the most reliable programs, as it seemed to us, try to spy on everyone as much as possible.

[tvplus006]

The problem is that we have no choice when they require us to pass verification. All conducted IDO require passing KYC and if you do not agree with this requirement, then you need to refuse to participate in the public sale of tokens. But some campaigns require verification even before you hit the whitelist. Thus, it is not yet known whether you will receive your coins or not, but you must pass the verification. Such moments should be avoided.

[Upgrade00]

there are some danger and we need to improve the internet security and surveillance.

Who decides who has the duty of protecting the public by having personal information? If the government and security protects us from scammers, who protects us from the government?
This narrative of keeping the internet peace should be dropped as it's only an excuse that is used by the authorities to maintain control.

(it's not that hard to steal people ID cards and documents without internet, it's very easy... no need to hack a database,  it's more easier to break your door or pockets than most servers over internet)

If it's not that hard to steal personal details, how efficient is the KYC process, it doesn't stop crime or scams?

[StonerStanley]

there are some danger and we need to improve the internet security and surveillance.

Who decides who has the duty of protecting the public by having personal information? If the government and security protects us from scammers, who protects us from the government?
This narrative of keeping the internet peace should be dropped as it's only an excuse that is used by the authorities to maintain control.

(it's not that hard to steal people ID cards and documents without internet, it's very easy... no need to hack a database,  it's more easier to break your door or pockets than most servers over internet)

If it's not that hard to steal personal details, how efficient is the KYC process, it doesn't stop crime or scams?

And who protect me from criminals so maybe you ? If i can't even use KYC for my personnal usage or the one of my entreprise....

According to people like you, we shoudn't use cryptography because this technology can be used by criminals to hide themselves, we should't use internet because we can get tracked.... we shouldn't use a VPN because the provider can get our IP (and more)... we shouldn't use an internet provider too then, damn... we clearly shouldn't use anything. If you are scared like that, then don't go buy any food in the market because the government or anyone good in biology can kill you by infecting your foods very easily (even your tea)

Show me the proof that the governement (which one btw ?) want to do something wrong to someone innocent ? prove me it.
Of course you are talking like if all the governments were killing homosexuals and smokers, i bet that the only governements that you are accusing of something wrong are the same that are attacking the others governements who kills homosexuals and smokers or journalists. And a government it's full of people who do not all agree with each other, people working at CIA or FBI aren't the same than the one who are making the law, ect, ect, ect.


I talked about doors of most people, in the case of smart people or the future: we gonna improve the world security / improve our own doors security everytime we can.

Most people aren't secure in their home, but some people are, you shouldn't penalise everybody.

You may not know, Pi Network is a fake blockchain platform, it may not be popular here, but it is very popular in other country, namely Vietnam. Thousands, tens of thousands of people have joined the platform and done their identity verification on the platform, many even investing money into it. And a scam platform will definitely take all your money, and your identity too, this platform used the user's identity and sold it on other social platforms, which is very dangerous.

If everybody was spied it would have never happened.
It's simply as that.

One thing i'm sure is, if you are asking the identity of everyone creating a website and an application, and if you are tracking them, then nobody can scam you without getting arrested.

People don't want to respect each other, here we go !

(it's useless to tell me anything like "you are wrong". Better tell to the people to start respecting each other then maybe something will change later)

[ChuckBuck]

Well, there's quite a bit of feedback here, and I don't think I can respond to all of you in one post, so, I'll get to your main points 

As you know, KYC is something that you often have to do on centralized exchanges.

I think we should split in two directions if we really want to distinguish words here. Through the exchanges that I have used, all have KYC (although not required) but KYC will give you other benefits. For any swap , it's no KYC, Pancake can be an example. So I think exchange is the right word to use 

That excellent topic and three referenced articles are enough to answer your question.

Are you sure I asked? i was just giving a situation, anyway, thanks for your info, great info for reference  I'm sure you heard about identity informations being sold in Vietnam in the last few days?

~skip

I'm not sure I understand what you want to bring to my topic  sorry but it's hard for me to read your rather long post and understand it 

It is difficult to talk about network security, at a time when even the most reliable programs, as it seemed to us, try to spy on everyone as much as possible.

there is no truly anonymous browser, as customer data is always a source of income, a lucrative commodity for these companies. If I remember correctly, Brave used to say that they are a browser that never steals customer information, and as a result, they still seem to be selling their customer information, right?

If it's not that hard to steal personal details, how efficient is the KYC process, it doesn't stop crime or scams?

I also want to ask this question, does KYC really work?

[o_e_l_e_o]

The problem is that we have no choice when they require us to pass verification.

Your choice is simply to look elsewhere. Exchange wants you to complete KYC? Trade decentralized instead. Payment processor wants you to complete KYC? Shop somewhere else. ICO or whatever wants you to complete KYC? Ignore it. Most ICOs are scams anyway.

According to people like you, we shoudn't use cryptography because this technology can be used by criminals to hide themselves...

On the contrary. We should use cryptography and VPNs and Tor and bitcoin and mixers and anything else which protects your privacy extensively, because the government have no right to undertake mass surveillance of the population. Not making their life easier by not completing KYC anywhere goes hand in hand with that ethos.

Show me the proof that the governement (which one btw ?) want to do something wrong to someone innocent ? prove me it.

Really? You mean like the thousands of innocent people the police have killed in the US? Or the thousands of innocent civilians we have drone striked? Or maybe when our government performed human experimentation and torture on innocent people? Hell, we've even arrested people for giving food to homeless people. And we are supposedly one of the most "developed" and "civilized" countries in the world. Ha.

[cryptoaddictchie]

All conducted IDO require passing KYC and if you do not agree with this requirement, then you need to refuse to participate in the public sale of tokens.

Its funny some IDOs requiring KYC authentication when they are aware that IDO stands for initial dex offering, while the term dex simply means decentralized. Where is the essence of that when they requiring people to provide identity and the will to hold it. More or less if you want to join then comply if not then leave it.

OP is right. Stay anonymous as long as we can some of those platform might used the information in a bad way.

[20kevin20]

There are a handful of exchanges out there that allow you to withdraw 1-2BTC/day without KYC. How many of you really withdraw $50-100k a DAY to require a verified account? Unless you really need it, just try to stay away from it. There is no advantage they are giving you besides an increase in limits, which is imo not worth your valuable personal information.

[o_e_l_e_o]

Its funny some IDOs requiring KYC authentication when they are aware that IDO stands for initial dex offering, while the term dex simply means decentralized.

There are plenty of exchanges which call themselves decentralized when they are no such thing. LocalBitcoins used that term for years before forcing KYC on their users. IDEX has the word DEX in the very name of their exchange, and yet demand KYC to use it. The word decentralized is used as a marketing gimmick by many, and many users don't understand what it means or why it is important.

There are a handful of exchanges out there that allow you to withdraw 1-2BTC/day without KYC.

But are there any centralized exchanges left which allow you to trade between fiat and bitcoin or vice versa without KYC?

[Upgrade00]

Show me the proof that the governement (which one btw ?) want to do something wrong to someone innocent ? prove me it.

I find it difficult to see this as a serious question. With a simple search you can find out lots of information about governments abusing power and control, blocking internet connection to its people so the world does not know what's happening.
There are so many recorded cases of governments doing something wrong to someone innocent, but I'll direct you to one related to my country, look up the case of Ken Saro Wiwa.

The bottom line is we do not live a utopian society, and everyone is liable to err, with this, no one should be giving full power or control as it can be abused.

[ChuckBuck]

There are a handful of exchanges out there that allow you to withdraw 1-2BTC/day without KYC.

But are there any centralized exchanges left which allow you to trade between fiat and bitcoin or vice versa without KYC?

ya, you are right on the main point, exchanges always call themselves decentralized, they use the word "DEX" as a label to advertise, but in reality, its essence is still centralized. And there aren't any exchanges that allow you to trade between fiat and Bitcoin without KYC, maybe someone will mention Binance, but I think they are wrong. Binance has also mistakenly considered USDT or some USD currency on other networks as fiat currency.
Speaking of a truly decentralized exchange, I think new DEXs like PancakeSwap (and other) are truly decentralized.

[20kevin20]

But are there any centralized exchanges left which allow you to trade between fiat and bitcoin or vice versa without KYC?

Obviously not, didn't even think about it, lol. But managing to purchase BTC using fiat without KYC is I believe so much easier than switching in between alts is (excluding tokens on the same chain).. at least in Europe. In Romania, purchasing BTC is as easy as going to a local ATM. Same for selling, excluding the fact that they take a quite large % of your amount. So if you can get to own a Bitcoin, trade it and sell it without KYC, why bother verifying at all? I know some people who've verified their accounts although they trade under $2k a month.. this is called just giving away your personal info without a reason for it!

[ChuckBuck]

Same for selling, excluding the fact that they take a quite large % of your amount.

I guess that's why many people come to this forum to do exchanges between BTC and other currencies

So if you can get to own a Bitcoin, trade it and sell it without KYC, why bother verifying at all? I know some people who've verified their accounts although they trade under $2k a month.. this is called just giving away your personal info without a reason for it!

It doesn't matter if they never think about the importance of personal information. Some people will go through the verification steps as soon as they create an account on an exchange, I think it's a habit.
The only exchange that I think we need to verify for regular use is Bittrex. I no longer use it because of the transaction limit, but a few years ago it only allowed a maximum transaction per day per unverified account of 0.4 BTC. Obviously, for those who trade regularly there, 0.4 BTC is not enough and they will do the verification.

[ShowOff]

KYC will never be guaranteed safe forever because we never know where, when and for what it is used by irresponsible people when customer documents on a platform are leaked.

For a long time, the local exchange that I use have required us to complete KYC document because there are rules that the government has implemented to prevent misuse, including illegal act such as money laundering. I can't guarantee that it will never leak in the future as case of exchange hack have continued to increase so far. But in the meantime, I don't want to do it on ICO, IEO and many other gambling site and meanwhile I only agree with a few.

[ChuckBuck]

KYC will never be guaranteed safe forever because we never know where, when and for what it is used by irresponsible people when customer documents on a platform are leaked.

that's why I insist that we shouldn't do KYC unless absolutely necessary, although no KYC is the best way. I personally wouldn't do KYC when an exchange requires it, I will change and use another exchange, unless, I have some money there and they ask me to verify it so I can withdraw money, that's the only case where I feel that I need KYC.

[Ceyflix-Rez]

Data breach can happen anywhere in this world online or offline it doesn't matter so living this life is already a risk, I trust top exchanges with my identity information and if data breach happens I don't care, it's been like 2016 now that I've know about KYC and many exchanges have gotten hacked since that time or even before and till date KYC safety remains a mystery