Isn’t KYC anti-ethical to Bitcoin?

[Minor Miner]

I think there is a serious flaw in this KYC issue, the flaw is as follows:

if we look at KYC we realize that only customers deliver documents to anonymous sites with anonymous owners and it is not known if our documents will be safe or not. this flaw hurts customers

How you could say exchanges are anonymous sites!
In what way you could say the owners of the exchange are anonymous!

Most people use Binance, Bittrex, Coinbase exchanges for trading, the owner of these websites is not anonymous at all, everyone knows them.
Another issue is that Bitcoin has not yet been fully adopted, and no government would want to legalize Bitcoin without KYC. so everyone should not oppose government work, for the sake of adoption. You know, anyone can do Bitcoin transactions anonymously without KYC if he has little knowledge about Bitcoin, so we shouldn't oppose the work of Govt.

[1714702486]

1714702486

[1714702486]

1714702486

[1714702486]

1714702486

[dothebeats]

KYC is like the antithesis to bitcoin on the aspect of privacy. It defeats the purpose of being pseudoanonymous, although of course it's a compromise we 'had' to accept if we want bitcoin to get legitimate in the eyes of the government. We can still support and promote decentralized exchanges, although it will need a lot more volume and attention, plus more beneficial features that can be better than on centralized exchanges.

[bounceback]

When i first heard about bitcoin, one of the selling points then was the pseudo anonymity. But as of recently, it is hard to purchase any crypto without encountering a form of KYC.

I’m just curious of everyone’s thought on this.

One of the reasons bitcoin attracted many people at the beginning of its release was because bitcoin was anonymous, but along with the increasing popularity of bitcoin, it is also possible that one day bitcoin's original anonymity will also fade because regulators issued by each country force us bitcoin users to reveal his real identity (KYC) so like it or not of course we are forced to do this so that bitcoin is legalized in our country.

[virasog]

When i first heard about bitcoin, one of the selling points then was the pseudo anonymity. But as of recently, it is hard to purchase any crypto without encountering a form of KYC.

I’m just curious of everyone’s thought on this.

You can still use and combine some decentralized exchanges, social media platforms ,mixers,  even some gambling sites and  P2P in order to get the crypto without doing the KYC but the process will be complex and not easily understood by a layman or the one who is new in the crypto.

There is pressure from the governments to make the KYC mandatory and hence the famous centralized exchanges won't allow you to buy bitcoin or make P2P transactions without KYC.

[KingsDen]

Kyc is actually one of the things bitcoin came to battle;
But bitcoin it's didn't come without his own problems;
It came with advanced scam and lots more;
Then kyc poss to be fighting scammers;
But it has been proven to be most cases a scam itself;
Then, it all goes down to what the bitcoin user wants;
You can chose to avoid kyc and still use bitcoin.

[fzkto]

Bitcoin was invented as a transfer of value between people directly, without the involvement of a third part. That is, if bitcoin is considered money, then in such a system you do not need a bank to make payments. Any bank requires proof of identity. In a bitcoin system, you don't need a bank from the beginning. So there is no need for a KYC.

[dezoel]

You are only going to be asked for KYC when you’re making use of all these custodial wallets and you are trying to buy Bitcoin. I do use some of those custodial wallets and the requirements to make use of them are usually too much, and when you try to make a purchase you’re also going to be required to do another registration if their supplier is a third party website.

But, when you’re making use of decentralized wallets or exchanges, you don’t need any form of that and the buying and selling is usually straight to the point. But the good thing about these centralized exchanges and wallets is that you’re protected as a user, which is unlike decentralized ones where you might be taking some risks.

[Ozero]

Bitcoin was invented as a transfer of value between people directly, without the involvement of a third part. That is, if bitcoin is considered money, then in such a system you do not need a bank to make payments. Any bank requires proof of identity. In a bitcoin system, you don't need a bank from the beginning. So there is no need for a KYC.

We can transfer bitcoin from wallet to wallet many times, but when it comes to making payments for goods or services, given that direct payment with bitcoin is not possible everywhere, we will need to transfer funds to fiat. And for this, it is necessary to use cryptocurrency exchanges and the banking system so that the amount in fiat goes to our bank account. States must fight money laundering and terrorist financing. In any case, demanding in this case the identification of users, they refer to this. Therefore, whether we like it or not, if we want the legalization of cryptocurrency, we will have to put up with KYC requirements when fiat comes into contact with cryptocurrency.

[LUCKMCFLY]

I do consider that it is antithetical, because BTC was created so that neither governments nor banks would get their hands on our money, our money in the traditional economy has always been managed by banks and for this reason is that now there are so many problems with the governments seeking regulations for BTC and crypto, this is something that should not be allowed because there are many ways to bypass prohibitions and governments and banks always think about making money just for themselves and do not think about the situation of each person, I am particularly in favor of Each person has the right to their money and the amount they want to move from one place to another. I think that was one of Satoshi's premises.

[noormcs5]

When i first heard about bitcoin, one of the selling points then was the pseudo anonymity. But as of recently, it is hard to purchase any crypto without encountering a form of KYC.

I’m just curious of everyone’s thought on this.

The orginial theme and concept of bitcoin was to provide the anonymity but all humans are not perfect. There are people who try to take advantage of this and may involve in illegal activities. In order to minize the risk, the centralized exchangess have no option but to enforce kyc.
Yes, many people dont like this and have no bad intent also, but we have to comply to this kyc requirement.

[Abiky]

When i first heard about bitcoin, one of the selling points then was the pseudo anonymity. But as of recently, it is hard to purchase any crypto without encountering a form of KYC.

I’m just curious of everyone’s thought on this.

It's hard but not impossible. The reason why almost every exchange requires KYC, is because of fierce government regulations. After all, the government wants to keep track of what people do with Bitcoin. They justify their actions by saying that they're preventing money laundering and terrorist financing. But we all know their true intentions. Unfortunately, the average person will be forced to provide ID documents to a centralized exchange since it's the easiest way to get access to Bitcoin. Decentralized exchanges, P2P trading platforms, and atomic swaps don't require KYC, but they're somewhat-complicated to use.

While KYC is "anti-ethical" to Bitcoin (since it brings back the middleman), the decentralized and open source design of Blockchain tech allows anyone to easily circumvent/bypass government restrictions. All that matters is that Bitcoin remains decentralized and censorship-resistant. As long as it stays that way, governments will find a hard time trying to regulate it. Just my thoughts