Blockchain.com Wallet KYC

[Ultegra134]

Back in 2012-2013, I had a few Blockchain.com wallets, back then, no details were asked, there wasn't even an option to login via email. Recently, I received an email from them about a promotion. They were offering $5 in BTC, if you completed the KYC process, by providing your personal details, such as residence, uploading your driver's license, or other form of identification.

On top of that, they've now added a section about taxation of cryptocurrencies, providing you with the ability to export tax statements.

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I'm starting to believe that even wallet providers and exchanges are shifting towards a centralization of cryptocurrencies, debunking previous theories about anonymity of funds and personal freedom.

What are your thoughts about this? Do you think more and more services will adopt similar techniques?

[o_e_l_e_o]

I'm starting to believe that even wallet providers and exchanges are shifting towards a centralization of cryptocurrencies, debunking previous theories about anonymity of funds and personal freedom.

Web wallets like blockchain.com have always been centralized. If you use their website, then you are placing complete and total trust in them and all the third parties which they use, and are at the complete mercy of their closed source backend (which has had a number of critical vulnerabilities in the past). The same is true of centralized exchanges. You cannot have any personal freedom if you store your coins on an exchange, since the exchange can choose whether or not to let you spend those coins. As the old saying goes "Not your keys, not your coins." If you aren't storing your bitcoin in your own wallet, then you don't actually own any bitcoin. You have no freedom, no security, and no privacy.

This says nothing about the principles of bitcoin though. Bitcoin itself is still censorship resistant and allows complete freedom to do what you want with your own money. Hold bitcoin in your own wallet and you can enjoy these benefits. Let a third party hold your bitcoin for you and you are at their mercy.

[franky1]

because blockchain.com is not jsut a custodial wallet but an exchange.
your you can use fiat to buy bitcoin via blockchain.com.. that part of their business means customers using that service need to be KYC'd

the hint is in the topic post

If you sold, swapped, or earned rewards on your crypto in the last year, you likely owe taxes.

its not saying"if you hold crypto. or if you use us as just a wallet
it clearly says if you exchanged or earned income then you probably need to pay tax on that fiat value

[hosseinimr93]

because blockchain.com is not jsut a custodial wallet but an exchange.

Blockchain.com is a non-custodial wallet and exchange.
Their wallet gives you the seed phrase and you have full control over your fund. Of course, I wouldn't recommend anyone to use blockchain.com. It's close source and we don't know whether the keys are stored on their server or not.

[Marvelman]

I thought Blockchain.com was a non-custodial web wallet. Can't you just take your seed phrase and import your wallet into another wallet, like Electrum?

edit: I just noticed that hosseinimr93 answered similarly as I was writing this.

[coupable]

I think that all the old members of the forum have used this wallet in their beginnings and before it turned from just a normal wallet to a trading platform that has its weight in the market. Identity proof procedures have been imposed since that time, but the mechanism of the wallet’s work has not been compromised, and then the wallet was developed to become in the form of an application on mobile phones, which is an application that appears to be decentralized, but it is not known about the mechanism of its servers factors.

[Ryker1]

I thought Blockchain.com was a non-custodial web wallet. Can't you just take your seed phrase and import your wallet into another wallet, like Electrum?

^[snip]

Well, this is possible --you can export your blockchain.com seed to Electrum.
This is a non-custodial wallet if they will enforce to ask KYC if I were in OP case, I will transfer to Electrum. They are paying $5 for that? Well, I cannot change my personal data into a $5 which is can risk my privacy. It is good if you will use other wallet platforms that should open-source wallets and the only answer is Electrum for this question.

[CaVO32]

I thought Blockchain.com was a non-custodial web wallet. Can't you just take your seed phrase and import your wallet into another wallet, like Electrum?

^[snip]

Well, this is possible --you can export your blockchain.com seed to Electrum.
This is a non-custodial wallet if they will enforce to ask KYC if I were in OP case, I will transfer to Electrum. They are paying $5 for that? Well, I cannot change my personal data into a $5 which is can risk my privacy. It is good if you will use other wallet platforms that should open-source wallets and the only answer is Electrum for this question.

In exchange of your info, they will have a "bonus" of $5. Nope, better use electrum, free and no KYC. But with today's crisis, a lot will still avail of that 5 bucks in exchange of their KYC details. The electrum wallet is a user friendly as you don't need big storage to get one. And you also have the full control of your coins. If you are a crypto user, better limit where you send your info. Even if we say, they have good intentions, we will never know where will these big data end up with down the road.

[vv181]

I'm starting to believe that even wallet providers and exchanges are shifting towards a centralization of cryptocurrencies, debunking previous theories about anonymity of funds and personal freedom.

What are your thoughts about this? Do you think more and more services will adopt similar techniques?

Regulation will come into play. As you may have heard, recently there is even some initiative to collect non-custodial wallets user identities using AOPP, fortunately, some wallets already decided to remove it. Nevertheless, it doesn't mean that governments will stop at that point. Expect that the government will figure out how to enter a few applications/entities/platforms that have centralized points.

[Upgrade00]

I thought Blockchain.com was a non-custodial web wallet. Can't you just take your seed phrase and import your wallet into another wallet, like Electrum?

You can, but I would consider that an unsafe way to secure your funds as you cannot verify how your keys and seed phrases were stored on their platform. It is much better to sweep the funds to a new wallet you've created on a non custodian, open source wallet software, like electrum.

And of course, you verify the signature.

[Bitcoin_Arena]

because blockchain.com is not jsut a custodial wallet but an exchange.

Blockchain.com is a non-custodial wallet and exchange.
Their wallet gives you the seed phrase and you have full control over your fund. Of course, I wouldn't recommend anyone to use blockchain.com. It's close source and we don't know whether the keys are stored on their server or not.

Based on what OP said, it looks like he was referring to the old era Blockchain.info wallet, which never gave one any back up phrase or seed phrase  that they could use to restore an account... Correct me if am wrong.

[franky1]

oh people.. your missing the point

blockchain.info wallet(separate department from the exchange) is the wallet service where you can export your private keys..

but thats not the point. its not about the symantics of "custodial"

it's about that blockchain.com exchange (different department) is a service that is an exchange
its the fiat exchange element that creates the need for KYC

the KYC element is not about the wallet service. but the fiat exchange service
something that has been integrated straight into the site when you log in.. there is no way to separate your login from having access to their exchange part.

(sidenote. if you want to get into symantics. go to blockchain.info/.com find the login page.. and then put your browser into 'offline mode' and see how far you can get at just client side.. it will surprise you)

[tranthidung]

I'm starting to believe that even wallet providers and exchanges are shifting towards a centralization of cryptocurrencies, debunking previous theories about anonymity of funds and personal freedom.

It's a natural trend. Crypto market need more regulations in order to expand its adoption. Regulation and adoption will move together. I believe that we won't see massive adoption if there will be no more and stricter regulations on the crypto market.

I share two topics on KYC and wallet recover with seeds from Blockchain.com

• Why KYC is extremely dangerous – and useless
• [Guide] Use CPFP if your stucked transactions from blockchain.com wallet

[Marvell1]

because blockchain.com is not jsut a custodial wallet but an exchange.

Blockchain.com is a non-custodial wallet and exchange.
Their wallet gives you the seed phrase and you have full control over your fund. Of course, I wouldn't recommend anyone to use blockchain.com. It's close source and we don't know whether the keys are stored on their server or not.

Based on what OP said, it looks like he was referring to the old era Blockchain.info wallet, which never gave one any back up phrase or seed phrase  that they could use to restore an account... Correct me if am wrong.

Yes, OP mentioned blockchain.info before, but now it has changed its name to blockchain.com. They are not like coinbase, they provide seed cluster for us and we have full control over our assets. But as OP said they started offering KYC, I think it's not secure anymore.

[maxreish]

I'm starting to believe that even wallet providers and exchanges are shifting towards a centralization of cryptocurrencies, debunking previous theories about anonymity of funds and personal freedom.

Indeed. Even those who are decentralized were started to require some KYC now thus being strict and following AMLAs regulations. I have experienced one particular wallet which has level options of KYC and with withdrawals and depo limits.

oh people.. your missing the point

blockchain.info wallet(separate department from the exchange) is the wallet service where you can export your private keys..

but thats not the point. its not about the symantics of "custodial"

it's about that blockchain.com exchange (different department) is a service that is an exchange
its the fiat exchange element that creates the need for KYC

Well, thanks for clarifying the point. Since it is one of the well known crypto exchange, the need to know your customer service is a must, considering to know all the details for them to provide better service , to prevent fraud and to know how those customers are using their platforms.

[tranthidung]

Yes, OP mentioned blockchain.info before, but now it has changed its name to blockchain.com. They are not like coinbase, they provide seed cluster for us and we have full control over our assets. But as OP said they started offering KYC, I think it's not secure anymore.

If they give you (customers) mnemonic seeds, you still have control on your coins. At least until they do some crazy changes. Meanwhile, to protect yourself, you can import wallets by given seeds to Electrum wallet ie. and move your Bitcoin to another wallet (not another address in the same wallet).

Read my topic, link above for a simple guide.

[franky1]

Well, thanks for clarifying the point. Since it is one of the well known crypto exchange, the need to know your customer service is a must, considering to know all the details for them to provide better service , to prevent fraud and to know how those customers are using their platforms.

what you also need to know.
is even if you are not at the $value level to need to hand over birth-certified ID. exchanges are already getting data about their customers.
they are already chain-analysing and IP logging... even fresh accounts with $0 value

if you use random IP's or known vpns/proxies or mixing your coins using known mixer addresses. you will be red-flagged as suspicious. right from the start

this basic analysis is done to check for duplicate accounts trying to circumvent the $value min limit before KYC is required. and yes if you are red flagged. the service can (just within the service terms and conditions, NOT regulation.. ask you to provide KYC and an explanation as to your activity)

[davis196]

Back in 2012-2013, I had a few Blockchain.com wallets, back then, no details were asked, there wasn't even an option to login via email. Recently, I received an email from them about a promotion. They were offering $5 in BTC, if you completed the KYC process, by providing your personal details, such as residence, uploading your driver's license, or other form of identification.

On top of that, they've now added a section about taxation of cryptocurrencies, providing you with the ability to export tax statements.

What are your thoughts about this? Do you think more and more services will adopt similar techniques?

A lot of things have changed in the cryptocurrency industry since 2012-2013.
Were you sleeping under a rock in the last 10 years.
Yes,more and more services will "adopt similar techniques",because they are required by the laws and regulations.
It's weird that Blockchain.com is offering a financial incentive,in order to force it's users to ID verify themselves.
Most crypto exchanges would just say that ID verification is mandatory and won't offer 5 dollars.
Perhaps Blockchain.com wants to treat it's customers in a better way,despite the fact that I've heard many horror stories about people being scammed by this company.

[o_e_l_e_o]

They are not like coinbase, they provide seed cluster for us and we have full control over our assets.

You don't. You have some control over your assets, but full control implies that you and you alone have control over them. If you store coins on a blockchain.com wallet or under a blockchain.com generated seed phrase, then you have absolutely no idea who else has access to your coins.

Indeed. Even those who are decentralized were started to require some KYC now thus being strict and following AMLAs regulations. I have experienced one particular wallet which has level options of KYC and with withdrawals and depo limits.

If a service is demanding KYC then it isn't decentralized, despite what it may claim.

It's weird that Blockchain.com is offering a financial incentive,in order to force it's users to ID verify themselves.
Most crypto exchanges would just say that ID verification is mandatory and won't offer 5 dollars.

As I said on another thread about this, it is because your data is far more valuable to them than $5. Your data can be endlessly monetized, sold, shared, etc.

[Charles-Tim]

Back in 2012-2013, I had a few Blockchain.com wallets, back then, no details were asked, there wasn't even an option to login via email. Recently, I received an email from them about a promotion. They were offering $5 in BTC, if you completed the KYC process, by providing your personal details, such as residence, uploading your driver's license, or other form of identification.

Blockchain.com can claim to be a decentralized wallet, but getting more not to be a decentralized platform, it is not even decentralized unlike because this is what centralized services are doing. It is just a means to link a person's address to the exact person. Blockchain.com is getting centralized.

I'm starting to believe that even wallet providers and exchanges are shifting towards a centralization of cryptocurrencies, debunking previous theories about anonymity of funds and personal freedom.

You can still use a reputed wallet like Electrum that is decentralized.

What are your thoughts about this? Do you think more and more services will adopt similar techniques?

Very possible. Just because most people are even foolish about privacy, they are willingly given out their personal data out. But reputed decentralized wallet like Electrum should still be existing.