Why exactly is it that people don't like identifying themselves (KYC)?

[Silberman]

Most of those who work in trading like to maintain their privacy for several reasons, first: because KYC goes against the concept of decentralization and financial freedom, most people want to work freely without the watch of governments trying to spy on everything and control your financial freedom by knowing everything about Your financial assets and monitoring of all your activities.
Second: KYC exposes you to danger by obtaining your personal documents from exchanges, which can be subject to theft by hacking the exchange or even selling information for money, and then your personal documents may become in the hands of thieves and be used in illegal things and then you can find yourself inside Prison.

And yet another reason is that if you are a trader that has a lot of bitcoin if you go through KYC then anyone can link your identity to the amount of coins you are holding, and this is a huge danger, this is not as bad when it comes to banks because even if someone were to discover how much money you have and it got stolen you can always get it back as banks can freeze your account and get those funds back regardless of where the money ended up being sent, but in the market of cryptocurrencies once your coins are outside of an address you control getting them back is way harder, so a high level of privacy is needed in order to completely secure your coins.

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[dunfida]

Most of those who work in trading like to maintain their privacy for several reasons, first: because KYC goes against the concept of decentralization and financial freedom, most people want to work freely without the watch of governments trying to spy on everything and control your financial freedom by knowing everything about Your financial assets and monitoring of all your activities.
Second: KYC exposes you to danger by obtaining your personal documents from exchanges, which can be subject to theft by hacking the exchange or even selling information for money, and then your personal documents may become in the hands of thieves and be used in illegal things and then you can find yourself inside Prison.

And yet another reason is that if you are a trader that has a lot of bitcoin if you go through KYC then anyone can link your identity to the amount of coins you are holding, and this is a huge danger, this is not as bad when it comes to banks because even if someone were to discover how much money you have and it got stolen you can always get it back as banks can freeze your account and get those funds back regardless of where the money ended up being sent, but in the market of cryptocurrencies once your coins are outside of an address you control getting them back is way harder, so a high level of privacy is needed in order to completely secure your coins.

Once you do comply off KYC then your identity would be known but doesnt mean that if you do own lots of bitcoin then you are already putting yourself in danger in physical aspects but for online matter then you should really mind off on how to protect yourself on getting scammed or hack and i cant really blame out people on being too paranoid when complying out those verifications and if someone does have that many coins
then i dont find that they arent aware about those things.

[Wind_FURY]

KYC for me would be OK, if security of the data is perfect, and anon-set of Bitcoin could be set and reset, which is possible.

But, there is no guarantee of the confidentiality of the data we use as a condition that it is safe.  Actually, I am very afraid if later my data is misused. All of a sudden came people collecting debts, it made me dislike KYC. See when some of the hacks regarding KYC bayak occur. One of them is in my country in one of the online buying and selling service providers Tokopedia, that the data has been hacked then in Binance in 2019.

My post wasn’t clear. It is possible to set, and reset Bitcoin’s anon-set, but no, it would not be possible to ensure perfect security of data in some other entity’s server. Not your server, not your data.

I believe this applies if it was given the right context. A decentralized exchange, running on a centralized server. Hahaha.

https://mobile.twitter.com/dydxprotocol/status/1468293558360805381

Due to a major AWS outage, dYdX exchange is currently down. We are experiencing greater latency across services and impaired functionality with endpoints not working and the website not loading

[PhucS]

KYC is the process to identify and verify the identity of customers when participating in opening accounts on exchanges, this ensures against illegal activities such as money laundering. Currently, on major exchanges, KYC is a mandatory condition to be able to trade, withdraw and deposit. However, many people do not like KYC because they are concerned about the issue of personal information being exposed. Information used for KYC such as passports and driver's licenses may be exposed if the exchanges are not well secured.

[boyptc]

well, this is a privacy issue. many exchanges are often hacked. because of that, people are afraid to use their data to do their KYC verification. however, I only do KYC on some local exchanges. however, if want to KYC register on a new exchange, I might just do KYC Level 1. anyway, this is all just a matter of privacy. In addition, many people are afraid to use their personal data for other things.

Yeah.

It's all about privacy and that's why many don't like to comply with KYC. But if there is no option for which you have to comply and that's all you need to do.

You will have to comply even if it's against to your will. You'll be fine doing that with the exchanges that you trust.

[Oilacris]

well, this is a privacy issue. many exchanges are often hacked. because of that, people are afraid to use their data to do their KYC verification. however, I only do KYC on some local exchanges. however, if want to KYC register on a new exchange, I might just do KYC Level 1. anyway, this is all just a matter of privacy. In addition, many people are afraid to use their personal data for other things.

Yeah.

It's all about privacy and that's why many don't like to comply with KYC. But if there is no option for which you have to comply and that's all you need to do.

You will have to comply even if it's against to your will. You'll be fine doing that with the exchanges that you trust.

All matters with trust and acceptance because there are instances  that you wouldnt really be having no choice but to comply on whats been asked if you are really that badly needing their service which means you wont have any options left but to deal on whats into your front.

Privacy thing is always been our primary concern which means that we would really be hesitated whenever we do meet up some verification
and that would be on possible reasons on which we dont like to expose our personal identity and we dont like for those informations
to leak online.

[palle11]

However, many people do not like KYC because they are concerned about the issue of personal information being exposed. Information used for KYC such as passports and driver's licenses may be exposed if the exchanges are not well secured.

Yes there is possibility that information disclosed can be sold out to someone else or used for illegal transactions. Not only in exchanges, bounty companies sometimes require KYC after you have participated to help them but after you submit your documents and passport they may not fulfill the release of reward and you end up regretting it. KYC is not suppose to be introduced in an online transaction because privacy should be protected.

[jaberwock]

I get that it goes against the fundamentals of crypto currency, but exactly for what reasons though? Assuming you're not using it for anything illegal (if you are then it's understandable), why the concern? I'm asking specifically when trading.

One most probable reason would be unpredictable questions from government authorities in future. Basically I do hate clearing KYC for no concrete reasons. While I am into this crypto space, I prefer straying anonymous hence I do not want to to submit any of my documents just for the reason of continuing trading in reputed exchanges (this way I have stopped trading on few long running exchanges).

We cannot predict what kind of stand government will take in future against cryptocurrency and when they are having the list of people who are already into cryptocurrency then they might start watching them at first hand when they will be taking any negative stand against cryptocurrencies. So, for the reason of avoiding future problems, I personally prefer to clear KYCs in exchanges.

[tvplus006]

...Information used for KYC such as passports and driver's licenses may be exposed if the exchanges are not well secured.

By itself, the disclosure of information contained in a passport or driver's license is not particularly secret. The problem arises when the disclosed data is linked to your wallet and it becomes known to attackers. Although if the tax authorities know about your cryptocurrency income, then this will also cause you additional problems.

[Natalim]

I get that it goes against the fundamentals of crypto currency, but exactly for what reasons though? Assuming you're not using it for anything illegal (if you are then it's understandable), why the concern? I'm asking specifically when trading.

Privacy, crypto is designed to have our privacy that's why we have a decentralized blockchain, but it turns out as crypto is getting more popular, it's also getting regulated as well. With the intervention of a centralized exchange, there's no choice for us but to comply with the KYC requirement, otherwise we will have a hard time converting our crypto to fiat.

[el kaka22]

I get that it goes against the fundamentals of crypto currency, but exactly for what reasons though? Assuming you're not using it for anything illegal (if you are then it's understandable), why the concern? I'm asking specifically when trading.

I can't speak on behalf of everyone else, but I can say that the clearest thing for me is the fact that we are talking something that is seriously important in privacy for me. Why would I want that data to be shared with anyone? Like what could be the reason to "want" something like that?

If we do not want it, then the feeling drops to "being okay with it", like it is not something I want, but if I am forced to do that to continue then I would be okay with it. Suddenly it becomes a lot more logical to understand why people do not want to share it, they do not like it because it is not something they want to do anyway, so it is forced on them.

Secondly and more importantly, I do not trust them to keep it safe, I have seen too many places that got hacked and all that information shared with others, that is enough reason to not want it because bad people could get their hands on it.

[crzy]

I get that it goes against the fundamentals of crypto currency, but exactly for what reasons though? Assuming you're not using it for anything illegal (if you are then it's understandable), why the concern? I'm asking specifically when trading.

Hackers and scammers can easily use your personal details to access your accounts online, and to scam many people as well using your identity and this raise a concern for your own safety as well. I do not support KYC in cryptomarket because first there’s no regulations here that can protect yourself from any kind of fraud and of course I’m concern about my safety and the safety of my money online. KYC should not be mandatory, that’s cryptocurrency for me.

[nurilham]

I think there are several possibilities that they are afraid of misuse of the personal data that they send and also as we know KYC requires quite strict processes and regulations so not everyone is able to do that, some people may have difficulty with that. but for me as long as I follow KYC properly then I don't need to be afraid that my personal data will be leaked, after all if we enter the crypto world then we cannot escape the KYC process. but it all depends on the opinions and beliefs of each, of course follow the existing rules because it will also make it easier for us to do things.

[Sihab76]

I get that it goes against the fundamentals of crypto currency, but exactly for what reasons though? Assuming you're not using it for anything illegal (if you are then it's understandable), why the concern? I'm asking specifically when trading.

People don't like KYC process because sometimes people avoid governments taxes . If they participate with KYC process , it obviously have documentation though they can't avoid governments taxes.

[boyptc]

well, this is a privacy issue. many exchanges are often hacked. because of that, people are afraid to use their data to do their KYC verification. however, I only do KYC on some local exchanges. however, if want to KYC register on a new exchange, I might just do KYC Level 1. anyway, this is all just a matter of privacy. In addition, many people are afraid to use their personal data for other things.

Yeah.

It's all about privacy and that's why many don't like to comply with KYC. But if there is no option for which you have to comply and that's all you need to do.

You will have to comply even if it's against to your will. You'll be fine doing that with the exchanges that you trust.

All matters with trust and acceptance because there are instances  that you wouldnt really be having no choice but to comply on whats been asked if you are really that badly needing their service which means you wont have any options left but to deal on whats into your front.

Privacy thing is always been our primary concern which means that we would really be hesitated whenever we do meet up some verification
and that would be on possible reasons on which we dont like to expose our personal identity and we dont like for those informations
to leak online.

Most likely that's the situation.

That, we don't have a choice but just to pass it on and comply because we like the exchange, our coins are hostage and we don't like to ship from exchange to exchange.

We're concerned about leak because hackers are also going for those very important information.

[nhaila]

I get that it goes against the fundamentals of crypto currency, but exactly for what reasons though? Assuming you're not using it for anything illegal (if you are then it's understandable), why the concern? I'm asking specifically when trading.

So far, no exchange can guarantee 100% security of our identity, if we remember back in 2019 when Binannce exchange was hacked and hackers managed to collect information about users' personal data and they threatened Binannce CEO to pay ransom, otherwise they will leak the identity of its users, this is the reason I am afraid to KYC on the exchange.

Kyc (Know Your Consumer) just  an identity process in take part in ico and sto process in cryptocurrencies but some people refusing kyc because they don't focus themselves on the government taxes. In the exchanges ,kyc just a phenomenal because Binance, bitmart, Kucoin centralized exchanges already hacked but all are kyc verified exchanges...

[VanityWallets2015]

-snip-

-snip-

In relation to what was mentioned, KYC is somehow being seen as a threat to privacy, thus people doesn’t really like it. Also, the issue of the security of their identities from being acquired by third parties is another reservation. I think that people seem to look at KYC as something that opposes their desire to have private transactions, without having to disclose personal information.

[sulendra12]

I get that it goes against the fundamentals of crypto currency, but exactly for what reasons though? Assuming you're not using it for anything illegal (if you are then it's understandable), why the concern? I'm asking specifically when trading.

Have you seen so many hacking incidents on the past? They could get all your data if they want to and especially if the exhanges have data stored in their server which makes your real life data in danger. Those hackers usually using your data for crimes, which is why your data is valuable even the little one such as your date of birth.

[Hamphser]

I get that it goes against the fundamentals of crypto currency, but exactly for what reasons though? Assuming you're not using it for anything illegal (if you are then it's understandable), why the concern? I'm asking specifically when trading.

Have you seen so many hacking incidents on the past? They could get all your data if they want to and especially if the exhanges have data stored in their server which makes your real life data in danger. Those hackers usually using your data for crimes, which is why your data is valuable even the little one such as your date of birth.

Some doesnt mind because they would be having on mind that.What they have done? They arent doing something illegal so theres nothing to be afraid off that kind of mindset thats why some people doesnt really bother

on complying out those KYC and exposing their identity as long they could really proceed on things that they've been doing and majority is really that itching when they do hear off such word.

We do put up important with our identities thats why we do much prefer on having that privacy and this is where crypto do really sets in.

[Silberman]

...Information used for KYC such as passports and driver's licenses may be exposed if the exchanges are not well secured.

By itself, the disclosure of information contained in a passport or driver's license is not particularly secret. The problem arises when the disclosed data is linked to your wallet and it becomes known to attackers. Although if the tax authorities know about your cryptocurrency income, then this will also cause you additional problems.

That is the real danger, if your holdings are small then this is not so much of a problem, but if your holdings are big then that could make you a target to hackers or to common thieves, this is why probably the first step needed to secure your coins is to never tell anyone the actual size of your holdings, and if someone ask just tell them that you have a few dollars worth of bitcoin and nothing more, but by going through KYC this information is impossible to hide anymore ,and if the exchange is hacked, something incredibly common, even if the hackers do not get your coins at least they will link your activity in the exchange with your identity and that is extremely dangerous.