Buying BTC from KYC exchange

[kryptqnick]

Op, there's probably no need to panic, but it largely depends on other things you've done, and on what specifically is of concern to you. If you submitted KYC once, and you're not a serious criminal, your data probably won't ever come up anywhere again. Sometimes there are hacks and some data is leaked, but the odds of this happening to you are very low. If you don't want to submit KYC in the future, choose relevant services. If you want to now try hiding your identity via mixers, I wouldn't recommend it because mixers are largely considered illegal, and using a mixer might attract more attention than doing nothing. Also, if you don't pass KYC but use a debit/credit card to buy/sell cryptos for fiat, you're also identified because all bank accounts are tied to ID, so if needed, this way the authorities can get back to you. But since there are tons of people using cryptos all the time, they won't unless they have a very special interest specifically in you because you're a big criminal. So keep calm.

[Lucius]

I don’t see why anyone would be as paranoid as an OP if we assume most people buy cryptocurrencies through a centralized crypto exchange (with KYC), with money they have legally earned. If at some point they want to sell that crypto and if they make a profit that way, then they need to pay taxes according to the laws of their state. On the other hand, if someone wants to buy BTC without identifying themselves, then there are other ways to do it - it all depends on what a person wants to achieve with such an investment.

For me, the biggest problem at KYC is data protection, which is often inadequate, compromising customer security - so everyone should think carefully about who they give their personal information to - and sometimes it's certainly better to pay a higher fee and make an anonymous purchase - security and privacy have never been cheap.

[Dread Pirate Roberts]

for me personally it's okay to buy crypto on the KYC exchange because now it seems that there is still the only safest way to get crypto without getting scam ( if you choose trusted exchange ) and also it depends on where you live too. if in my country there is an e-commerce that sells bitcoin assets as well. This does not require KYC but is also safe because our money is held by the e-commerce.

[joniboini]

Well, there is probably no other gateway than from P2P on centralized exchanges, as far as Fiat is concerned, perhaps KYC is a must in the current state of affairs

If ATM is available for you, you might be able to use that.  That being said, anything related to fiat is closely related to KYC. If there is no way to avoid it, then just try to use the most reputable platform near you and stop doing KYC here and there. It won't remove the risk but at least it will reduce it to some extent.

[traderethereum]

Up until now, I thought the only way to convert fiat to BTC is through KYC exchanges. It seems like there are alternatives such as Bysk. Did I shoot myself in the foot by purchasing through KYC exchanges? 

Converting fiat to bitcoin through KYC exchanges is one of many ways to sell bitcoin.
If you are concern with your identity getting hack or sell by the exchanges, you really need to find your local sellers so you can buy or sell bitcoin without anyone knows except you and your local sellers.
Your government will also do not know about the transaction because you and your local sellers only send and receive the fiat transaction through your bank account and you send the bitcoin from wallet to wallet.
But @mk4 already gave you 3 options to buy and sell bitcoin so you can try to use one of the options or use one by one.
But I still prefer to buy and sell to the local sellers because we know the sellers and if we often make a transaction with the sellers, we can make a friend with them to be more secure for you.

[Fortify]

Up until now, I thought the only way to convert fiat to BTC is through KYC exchanges. It seems like there are alternatives such as Bysk. Did I shoot myself in the foot by purchasing through KYC exchanges? 

I don't see how you would have, unless the money you were using was somehow dirty. You actually did the right thing because when you bought from an exchange there was a paper trail for your money up until that point so the government will not be able to create any disputes over hidden wealth. I personally quite like using localbitcoins which is a peer to peer exchange, however it can come with its own set of risks, if you follow their rating system and only trade with people who are very highly rated (99-100%) then you will do just fine. Now I think about it, they have a KYC process too but it didn't exist when I first signed up - it was verified much later. Why do you think that it was wrong to to use those sites? You'll generally have better legal protection.

[Shasha80]

for me personally it's okay to buy crypto on the KYC exchange because now it seems that there is still the only safest way to get crypto without getting scam ( if you choose trusted exchange ) and also it depends on where you live too. if in my country there is an e-commerce that sells bitcoin assets as well. This does not require KYC but is also safe because our money is held by the e-commerce.

I also prefer to use KYC exchanges to buy Bitcoins, because that's probably the safest way I can think of for now. Although the risk is that we must be
willing to lose our privacy, because we have to submit our personal data to these exchanges. Therefore, it is better if we finally decide to use KYC exchanges
to buy Bitcoin, choose one that has a good reputation.I've been using KYC exchanges in my country for 5 years, and luckily I haven't had any bad experiences.

[Saidasun]

If you have used a KYC exchange then the exchange will now know your address and any linked addresses to the address that you used for withdrawing that is the only thing that they know and have tied an identity to it but it probably has not had a big impact because they have millions of Bitcoin addresses on record.

[Kakmakr]

Yea, I have always said..... the real "flaw" in Crypto currencies are the "need" for people to convert back and forth between Fiat and Crypto and visa versa on Exchanges. Exchanges could care less about your Pseudo anonymity, because they are only focused on their profits from your transactions.

When I started out with Bitcoin, we had to do person to person trading behind McDonalds where they do not have CCTV cameras. (Yes, it was illegal back then, so we did not trust 3rd party services and we had to take big risks to buy it from verified "contacts". Now, with verified contacts, I mean... people who knew people ...who traded with those people before.)  The authorities set traps for those traders, so you had to watch out for them and also robbers and scammers. 

[indo1]

Buying in exchanges that require KYC seems to guarantee more security, because they also do not want on their case there are criminals, terrorists, to launder money, or other evil things. This is also a good exchange standard for use, because some of the litigants that don't use KYC are like less trusted, or they don't look serious in running a case.

[tbct_mt2]

Is there a way to reverse the damage? Perhaps through things like mixers etc? What are your thoughts on those?

If you open your account on centralized exchanges, you must read Term of service and follow their guides. If you break ToS, your account will be under investigation of Compliance team. They might suspend or restrict your account.

Mixers are not good because exchanges are keen on being strict with mixers. They don't want to get troubles with governments and money laundering. You can mix your coins with mixers if you want, after you buy your coins on exchanges, and withdraw it to your non-custodial wallet. After that, you can send your coins to your non custodial wallets to mixers.

If it is Bitcoin, you can use Wasabi wallet and Coin Join transactions. https://wasabiwallet.io/
Mixers: the best is Chip Mixer. Other mixers 2021 List Bitcoin Mixers Bitcoin Tumblers Websites

[geegaw]

Buying in exchanges that require KYC seems to guarantee more security, because they also do not want on their case there are criminals, terrorists, to launder money, or other evil things. This is also a good exchange standard for use, because some of the litigants that don't use KYC are like less trusted, or they don't look serious in running a case.

Cases of terrorism or money laundering are also not what these exchanges pay attention to, they only pay attention to the attitudes of traders from their exchange, holding the KYC equivalent of holding an alias, just a certain account is behaving badly and not completing the transaction on time, blacklisting is the first thing, the next is to block all transactions at that exchange. If this scammer took a large amount of money from the customer, the information from KYC can become a good resource for government agencies to track down these bad guys

[Ararbermas]

Up until now, I thought the only way to convert fiat to BTC is through KYC exchanges. It seems like there are alternatives such as Bysk. Did I shoot myself in the foot by purchasing through KYC exchanges? 

its an old way before you can buy bitcoin from exchanges. But nowadays it's not recommended at all since mostly exchanges are not safe from hacking. By the way what do you mean Bysk? If it's a new exchange or whatever it's because to be honest i never heard such name before. So i suggest to buy bitcoin through binance, latoken or any legit platform to secured your money from scam exchanges out there.

[o_e_l_e_o]

KYC exchanges are exchanges that guarantee the safety of their users, there may be some exchanges that do not use KYC, but as such these exchanges are less secure, and look un professional

What absolute nonsense. Centralized exchanges guarantee nothing for their users. If your account is hacked, say bye to your coins. If they are hacked or sell or KYC data, sucks to be you. If they choose to lock your account, tough luck. You risk everything by trusted a centralized exchange with the security of your data and the security of your coins. Conversely, a decentralized exchange which does not require any data from you and does not have a centralized wallet you must deposit your coins to is far more secure.

contact the exchange and request that all personal information pertaining to your account be deleted immediately.

I would still do this, but it is unlikely to have much of an effect. Centralized exchanges are legally required to hold your information for a period of time after your last transaction with them. Depending on your/their jurisdiction, this could be up to 10 years.

If it 8s not a crime in your country to do cryptocurrency trade then I don't think there should be this much concern except otherwise.

This is just the "Nothing to hide, nothing to fear" argument, which is completely nonsense and has been thoroughly debunked.

If you submitted KYC once, and you're not a serious criminal, your data probably won't ever come up anywhere again.

I would say his data is probably already in the hands of his government and tax agencies.

If you want to now try hiding your identity via mixers, I wouldn't recommend it because mixers are largely considered illegal

No they aren't.

Is there a way to reverse the damage? Perhaps through things like mixers etc? What are your thoughts on those?

Either transfer the bitcoin you bought back to the exchange, sell them, withdraw the fiat, close the account, and buy bitcoin on a decentralized platform, or close your exchange account first and then use a mixer or coinjoin to mix the coins you already own and transfer them to a brand new wallet, being careful not to link any newly mixed coins to any old unmixed coins.

[Woodie]

Up until now, I thought the only way to convert fiat to BTC is through KYC exchanges.

There several ways of going about this, I myself use my trading account  to convert my crypto into fiat but when it comes to using exchanges with no KYC  these usually apply higher conversion rates which makes them kind of expensive on your side.

It seems like there are alternatives such as Bysk. Did I shoot myself in the foot by purchasing through KYC exchanges? 

Never heard of Bysk...
But afaik It all depends on how you treat your personal information and urgency of the money,  because  the price you will be paying is higher than you would on exchanges with KYC.

[perryxi2]

BTC purchased from an exchange with KYC when you have KYC and then it is very difficult to cancel, you can contact support or go to the section to cancel all information. but I KYC binance also don't know how to cancel KYC, KYC is very inconvenient to withdraw a lot, but when the amount is too large, they suspect and think that the money is illegal, I don't like KYC

[Coin-1]

Did I shoot myself in the foot by purchasing through KYC exchanges?  

I am assuming you bought Bitcoin with fiat money as a long-term investment, so the answer is no. In any case, if you have followed the "Know-Your-Customer" procedure and purchased BTC on a legitimate exchange, you can withdraw your coins to a cold wallet to avoid the risk of losing funds due to a possible hacked trading platform.

Is there a way to reverse the damage? Perhaps through things like mixers etc? What are your thoughts on those?

Keep in mind that the cryptocurrency exchange can monitor the public Bitcoin blockchain and track all transactions associated with the BTC address you provided. I've heard that some exchanges blocked their customers' accounts when they sent withdrawn coins to the mixers, so beware of such activity.

[Wakate]

To me there are many ways I can convert my cryptocurrency into Fiat, but my prefer method is to sell it to friend around my abode. Bitcoin is some how scarce and there are always people ready to buy it and use it for other trading reasons because of it volatility and worth in the society. I don't have to look for buyers on kyc platform or P2P trading platform cause to me it's stress and I wouldn't want to waste time looking for buyers which they can be always around me. I do sell my Bitcoin to trust able persons that can always credit me.

[soulmates]

Up until now, I thought the only way to convert fiat to BTC is through KYC exchanges. It seems like there are alternatives such as Bysk. Did I shoot myself in the foot by purchasing through KYC exchanges? 

There are a lot of exchangers where you can exchange cryptocurrencies for fiat. Also, there are p2p exchangers where you can even be offered to meet a person in real life to cash out funds. and do not pay taxes!

There are a lot of ways to do this without KYC!

[Hippocrypto]

Up until now, I thought the only way to convert fiat to BTC is through KYC exchanges. It seems like there are alternatives such as Bysk. Did I shoot myself in the foot by purchasing through KYC exchanges? 

Not really mate, it's not a big deal as unless that exchange breached your private information. We need to be careful on trusting unknown exchanges that requires us to submit kyc. Much better to buy btc at trusted sites like binance or ettoro.