Isn’t KYC anti-ethical to Bitcoin?

[LeGaulois]

I don't think, I'm close-minded in my speech? Everyone can buy his first BTC without a third party. The majority prefer to use an exchange, or anything similar because they can do it easily online as 1,2,3. It's about convenience, yes maybe, but it has a cost.
I don't know if I shall say they're lazy, don't take the time, or are not well informed but you can truly purchase BTC directly peer to peer.

I think what they say is the transition from bitcoin to fiat. That a third party is required.

And that's why I replied "not true" because it isn't. But for the same reasons above, people don't want to spend time looking at how to do it.

How many of us are dealing without a 3rd party, whenever it's to buy, sell, or simply live the crypto life? We don't do any type of magic. By using a third party, there is also a long-term effect. Since people use such solutions, this is exactly why we see more and more restrictions of various kinds (laws, AML, or other things).

Honestly, people talk a lot about decentralization and privacy, but they're the first to use centralized platforms and give them their personal documents. (Isn't it funny?)
The newbies entering the crypto world then think it's how it's work and how to do it. While in reality, it's not true. We should rather show them the true road of Bitcoin.

What's the sense to buy a decentralized currency but to use a centralized platform. Better to keep using fiat and your bank account, your debit card, and your cheque.

Ah, I know the answer. Follow the money.
It's to speculate and to make cash.

It finally shows people are interested only in speculation and not really in the ideology behind Bitcoin.
Sad but true.

[Natalim]

In every setting, a certain sacrifice is needed before the mainstream or adoption happens and this is something that has been discussed some times ago on this forum. However, it was the increase of crypto theft that make SEC to introduced KYC/AML to the exchange, and every exchange site that wants to keep operating must abide by the command.
Despite that, it's not hard to buy BTC without KYC but you have a price to pay for your anonymity though.

Whether we like it or not, it certainly comes that all exchanges and even P2P transactions will ask KYC. As the more scamming and hacking incidents happen, the more it pushes through and we started to feel it now. SEC will probably set strict rules and regulations in regards to KYC and live no chance to keep anonymous. But if this will be the solution to move fast the adoption, I guess, it needs our support as well.

[TimeTeller]

In every setting, a certain sacrifice is needed before the mainstream or adoption happens and this is something that has been discussed some times ago on this forum. However, it was the increase of crypto theft that make SEC to introduced KYC/AML to the exchange, and every exchange site that wants to keep operating must abide by the command.
Despite that, it's not hard to buy BTC without KYC but you have a price to pay for your anonymity though.

Whether we like it or not, it certainly comes that all exchanges and even P2P transactions will ask KYC. As the more scamming and hacking incidents happen, the more it pushes through and we started to feel it now. SEC will probably set strict rules and regulations in regards to KYC and live no chance to keep anonymous. But if this will be the solution to move fast the adoption, I guess, it needs our support as well.

Unfortunately, we can't avoid this KYC now. Because for local exchanges or other crypto businesses to be legit, they need to be under the government's approval.
And since they need to implement the AML laws, they need to know the identity of their clients, and one way, is really require their KYC details.
So even if we say it is not the original purpose of btc, if we want adoption, we can't avoid this to happen.

[Luqman]

But as of recently, it is hard to purchase any crypto without encountering a form of KYC.

It is not hard. If you don't like KYC, you can trade it on DEX such as Pancakeswap or Uniswap. KYC is only required for CEX, they use KYC for security purposes. I think we cannot blame them, they have the right to apply KYC. I think they are not trying to kill the anonymity on Bitcoin, they just ensure no problems on their exchanges. By applying KYC, they fight money laundering and fraudsters.

[Kasabus]

But as of recently, it is hard to purchase any crypto without encountering a form of KYC.

It is not hard. If you don't like KYC, you can trade it on DEX such as Pancakeswap or Uniswap. KYC is only required for CEX, they use KYC for security purposes. I think we cannot blame them, they have the right to apply KYC. I think they are not trying to kill the anonymity on Bitcoin, they just ensure no problems on their exchanges. By applying KYC, they fight money laundering and fraudsters.

Well, there's nothing new with all these exchanges as they always follow what the government told them. And i think they are just doing what centralized exchanges should do. And as a trader, if you want to keep your privacy, then you have all the choices you want. There are still some good exchanges who are not requiring KYC. But we can't deny the fact that maybe in the near future, we can no longer see exchanges who are not asking for KYC as most of the exchanges nowadays are becoming centralized. So better get used to it.

[uneng]

From an individual perspective it's anti-ethical, but looking at the big picture it's not, because we live in centralized countries ruled by centralized entities. To be allowed inside these socities, bitcoin needs to be adapted to the local rules, like anyone and anything else.

Furthermore I must say regulations such as KYC aren't totally bad, although I personally don't like them and wouldn't like them to be necessary. However we need to be realistic and confess KYC procedure helps authorities fight illegal activity easier and crypto businesses to stay legit as they have a compromise not only with their customers, but also with the local laws of the territory where they operate from.

[Yogee]

When i first heard about bitcoin, one of the selling points then was the pseudo anonymity.

This probably became one of the hindrance for mainstream adoption as well. The narrative on BTC before big personalities and institutions came into the picture is black market or dark web since transactions on Bitcoin network are private. Common people won't buy and use it since they are scared to be involved or associated with illegal activities.

[hatshepsut93]

"Anti-ethical" is a strange choice of words, and something that is not ethical is usually called "unethical" or "immoral". KYC is against the values that Bitcoin represents - self-sovereignty, control over own money, avoiding trusted third parties and their risks. But at the same time, control over your money means that you are free to hold your bitcoins on some custodial wallet that requires KYC. It's not a good idea, but you are free to do it.

[dothebeats]

KYC defeats the purpose of bitcoin, yes. Though with the current state of developments surrounding cryptocurrencies, and the legal framework existing to cater them, I can say that there's not much we can do about KYC. There are still no-KYC platforms though, but they impose a certain limit on the amount you can trade/buy with them, and that sucks for the most part.

Expect more KYC in the future when the governments figure their shit out, though you can always count on people to go against this amd establish their own decentralized, no KYC platforms.

[lumierre]

Actually, there are ways that can help you to stay anonymous, but it will require a lot of effort, accuracy and it may become more expensive. You can use mixers and some private chains such as Monero. I know that even these technologies are not a guarantee as for now, but it least it will help to be more anonymous. What comes to KYC, I go around it, so I use exchanges and platforms that don't require it.

[famososMuertos]

The bitcoin in its initial premises remains the same, nothing has changed, it is a characteristics of bitcoin to be able to be anonymous to a certain point or at least without kyc, today it is an option to choose that situation.

[avikz]

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.

Yes, it is! KYC is super unethical for bitcoin. But it is hard for a common people to buy bitcoin without going through KYC verification unfortunately. That's why we are seeing a sudden rise in SWAP systems and DEXs. But again, you can't use fiat with them so you need to have KYC details to enter into the crypto market in general.

It's unfortunate buy it's a sad reality. This decentralized crypto market is flooded with multiple centralized exchanges who are bound to comply with the government regulations.

[jaberwock]

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.

Sure it bothers a lot of people, but sometimes you can’t avoid them because they are just everywhere. Bitcoin is meant to be a currency that you would be using and not worry about your privacy at all, but now all these big exchanges (or should I say the cabals of cryptocurrency?) have finally turned it to something else that is totally off, now we are heading down a route that we were not supposed to be at first.

For long, I haven’t been making use of major exchanges when I’m buying or selling cryptocurrencies, rather I have been making use of local exchanges (peer-to-peer) and I have been totally okay with it, because I get what I need.

[Wind_FURY]

KYC is not a bad thing. If you don't want to use services that require it then you don't.
Depending on where you live there are plenty that do not require it.
There are exchanges for other coins, ways of getting cash, gift cards and just about anything else that do not require your info.

IF on the other hand you want a regulated environment with more rules and security, then yes you are going to wind up with KYC.
I can go to localcryptos.com and get cash for my BTC, and hope everything goes smoothly (it usually does) OR I can go to Gemini give up my personal info and know that it will go smoothly.
The choice is up to you.

-Dave

I too believe KYC is not a bad thing, until it can be used against you. But I don’t mind KYC if we can use an app to reset, then increase Bitcoin’s anon-set, as a KYC preventive mechanism.

If only we can use an off-chain network to do that.

[JohnBitCo]

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.

Yes Bitcoin was designed keeping in focus the decentralized and anonymity factor in mind, but due to the government rules and regulations, we can only purchase crypto after kyc on the p2p sites. The sites are boumd to perform the kyc because they think its a way to prevent money laundering.

[michellee]

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.

That is because you are trying to use third-party services that the government already watched and want to know who their customer is. If you do not deal with any of that third parties or keep your bitcoin in your wallet or use DEX or use a third party that does not need KYC, you do not have to send any document of yours to them. But as many of us use our bitcoin to make more money from the exchange or buy something from the online or offline store, that makes us fill KYC and follow the rules. I do not mind doing KYC but I will search for third-party services with good reputations so I do not have to worry about the worst thing that can come anytime.

[o_e_l_e_o]

Yes, it absolutely is.

Look at what the whitepaper says about privacy:

The necessity to announce all transactions publicly precludes this method, but privacy can still be maintained by breaking the flow of information in another place: by keeping public keys anonymous. The public can see that someone is sending an amount to someone else, but without information linking the transaction to anyone.

KYC prevents this entirely. You cannot keep your public keys (and by extension, your addresses and transactions) anonymous when a centralized exchange controls all your keys, knows exactly who you are, and hands that data over to massive blockchain analysis companies.

[harizen]

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.

Technically, yes.

But since people have no choice, in most cases, we rely on a third-party service to either buy or sell our cryptos. Somehow, for these businesses to run a legit service, they need to comply with the government's policy and KYC is one of the mandated terms they need to ask their users.

We still have P2P or DEXes out there however, it's no doubt that purchasing crypto in a centralized platform is the most convenient way*.

[yazher]

You can still trade BTC with anonymity, it all depends on what you prefer. There are so many exchanges around and most of them are centralized that require KYC. If you are ready to compromise on your privacy then you can join these centralized exchanges. But yes I do agree that most common source of BTC trading is through these exchanges.

I don't know if some known exchanges offer anonymity right now especially those who used to be decentralized are now has changed their point of view because the government force them to do so. However, there are few exchanges out there that still exist offer you their service without getting some KYC from you. They are those exchanges that give you a limit if you didn't pass any KYC to them but right now it seems to me like they also getting unto this kind of exchange and they too are now adopting the policy of making obliged the KYC of their users before they can use their service. just like what happened to Binance and other known exchanges that haven't been like that before.

[goinmerry]

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.

There's no decentralized exchange where we can settle things like buying or selling instantly with our fiat. We need to start from scratch and that's what centralized exchanges do. KYC will now be a part of our crypto journey since in the first place, using them gives convenience to us users.

It's still better to just comply instead with these exchanges terms instead of using non-popular exchanges where the chance of getting scammed or being treated unprofessionally has a high chance.