Privacy concern for bitcoin users

[_act_]

See what KYC has turned to.

Bitstamp asks users to update the source of their crypto, citing regulatory compliance

Bitstamp now requires users to provide info like nationality, place of birth and tax residency, in addition to documents proving the origin of crypto and the annual income.

Major global cryptocurrency exchange Bitstamp continues increasing compliance efforts by requesting its users to provide more data like their source of wealth.

Exchanges were demanding for email before. From email to basic KYC requirements like name and home address. Exchanges with the excuse of compliance with anti money laundering policies and international regulation still go further to demand for more identities like drivers license, national Id card or international passport. The time may come when more countries will demand for registering of noncustodial addresses own by their exchange users. Now they are demanding to know the businesses their customers are making money from.

If all these information are leaked to hackers, this will be another big problem. Centralized exchanges looking for more ways to make hackers know more about people and this can be harmful.

[Lucius]

You haven't been on the forum for a long time to know that this exchange has always been pretty curious about things that others weren’t looking for at the time. Some would say that they even tried to be ahead of the law, in the sense that they wanted to show how legitimate and transparent they are in everything.

There will always be those who will obey every request, but also those who will not agree to such rules of the game - and perhaps because of such rules this crypto exchange is not as popular as some others that emerged years after them (2011).

You can find some interesting information in these two threads :

Is Bitstamp still a good exchange for trading?
If you're using Bitstamp, now might be a good time to ditch it.


I think this topic would be more suitable for Exchanges board

[stompix]

And the news is? 
Bitstamp has done so for a long time for EU customers, it might be that they've extended the net to other countries but their stupid shit questionnaire was there since 2019 if not earlier.
Oh, wait, it's more data, previously it was just a bit of data, then average data now they are going for the anal probing probably.

BitStamp KYC out of control
Has someone filled out the new verfication questions for Bitstamp?

Wait till you find out what coinbase does with your data!

[mk4]

Wait till you find out what coinbase does with your data!

Speaking of Coinbase — doesn't Coinbase require the same information? Because for these kinds of "deep" requirements, I'd expect Coinbase to go first simply due to their size and with them "trying to be ahead of the law".

[Upgrade00]

None of these requirements are new.
Exchanges have been very demanding in there KYC/AML procedure for quite a long time now and it's becoming more difficult to evade these days. The lines of what transactions or actions does not require de anonymizing oneself is getting blurry and with it the cost of privacy increases.

If all these information are leaked to hackers, this will be another big problem.

Assume that any information you submit to a website has already been viewed by multiple third parties, including banks, brokers, hackers etcetera.

[stompix]

Speaking of Coinbase — doesn't Coinbase require the same information?

Coinbase had a drop-down menu that asked for the source of funds with all the possibilities for years, I don't know when I first was promoted by one but it was for sure years ago, maybe before bitstamp. But till I quit using them, a year or so they never asked for documents, thy were happy with the "savings" if I remember correctly answer.

The thing with Coinbase is that it willingly reports to the IRS, the moment you use them you agree to o this, at least till now Bitstamp does this only when asked but it won't be long till they will probably start doing the same.

[Zilon]

This is why having  a wallet that generate new addresses after each transaction  is some how best for tackling  this hilarious KYC demands from exchanges.  One can easily  make claims to anything  of their choice as their source  of income so has to protect keep some part of their dealings even more anonymous or what do you think

[fiulpro]

This is not exchange, it's the government that is demanding a lot of these things to be fulfilled which does Mean that if the sites wants to function then it has to actually Try and keep up with everything that there is going on, which does mean that for them it's a *necessity*  to do so, we cannot fault them for this. It's the inherit need of the government for total control and domination of the markets.
Every single site does require the same information now a days you can always look for other places like samourai wallet if you are not sure about going in for a place needing the kyc and there are still other options that you can use for sure like : paper wallets etc. If you wanna stay afar from the sights of the government then that's the way to go.

[Silberman]

This is not exchange, it's the government that is demanding a lot of these things to be fulfilled which does Mean that if the sites wants to function then it has to actually Try and keep up with everything that there is going on, which does mean that for them it's a *necessity*  to do so, we cannot fault them for this. It's the inherit need of the government for total control and domination of the markets.
Every single site does require the same information now a days you can always look for other places like samourai wallet if you are not sure about going in for a place needing the kyc and there are still other options that you can use for sure like : paper wallets etc. If you wanna stay afar from the sights of the government then that's the way to go.

Centralization is just another name for a point of failure, so we knew that centralized exchanges were eventually going to be asked to become even worse than banks when it comes to how invasive they are towards your privacy, however it seems that many people simply do not care, something I find incredible, after all if the people that are using bitcoin right now do not care then what we can expect of the users that come afterwards? They will simply accept those measures as if they are part of bitcoin when that is not really the case.

[BlackHatCoiner]

Great, here's the millionth reason why you shouldn't use centralized exchanges. I wonder what's next. Criminal record? Diplomas? Blood type? Search engine history? Religion? Sex? Bitcointalk username? Hand it out people, it's for the sake of you!

If all these information are leaked to hackers, this will be another big problem.

They will, one hundred percent. There are two kind of centralized exchanges; those that got hacked and those that will.

[mk4]

This is not exchange, it's the government that is demanding a lot of these things to be fulfilled which does Mean that if the sites wants to function then it has to actually Try and keep up with everything that there is going on, which does mean that for them it's a *necessity*  to do so, we cannot fault them for this. It's the inherit need of the government for total control and domination of the markets.

It could be because of government intervention, but yea it doesn't really change the fact that handing over very sensitive information to a central entity is dangerous as heck.

Every single site does require the same information now a days

*snip*

This is obviously not the case.

[dataispower]

Those requirements you present is not something that is not familiar for exchanges KYC verification they are not new information or details, and why I'm seeing all this exchanges verification requesting for the full details of their customers is to know if customer can not betray and also abuse the system by scam. And you know if the necessary informations is not being provided to the exchange government can easily strike to the platform. So the demand of those details is what any exchange that is straight forward will like to do for them to keep the system going with their customers

[Cookdata]

See what KYC has turned to.
Exchanges were demanding for email before. From email to basic KYC requirements like name and home address. Exchanges with the excuse of compliance with anti money laundering policies and international regulation still go further to demand for more identities like drivers license, national Id card or international passport. The time may come when more countries will demand for registering of noncustodial addresses own by their exchange users. Now they are demanding to know the businesses their customers are making money from.

If all these information are leaked to hackers, this will be another big problem. Centralized exchanges looking for more ways to make hackers know more about people and this can be harmful.

At the strike is wrong, the custodial address you mean. Centralised exchanges are becoming a problem but of course to only those who cannot do without them. You cant satisfy centralised exchanges, even the KYC they are demanding is not enough for them when a problem ensued.
There is always an alternative to centralised exchanges right from the very day AML has been trending, use exchanges that don't require KYC that allow withdrawals and it should be done bit by bit, don't deposit all your life savings on anyone custody, your money and privacy are only save when they are on your care.

[_act_]

This is why having  a wallet that generate new addresses after each transaction  is some how best for tackling  this hilarious KYC demands from exchanges.  One can easily  make claims to anything  of their choice as their source  of income so has to protect keep some part of their dealings even more anonymous or what do you think

How about exchanges in some countries that will require all their users to register the noncustododial addresses they are sending crypto to. But change address can help privacy while making use of noncustododial wallet. Also, if you change address but still send from an exchange, the exchange can still possibly link addresses.

Every single site does require the same information now a days you can always look for other places like samourai wallet if you are not sure about going in for a place needing the kyc and there are still other options that you can use for sure like : paper wallets etc. If you wanna stay afar from the sights of the government then that's the way to go.

Not only Samorai wallet, noncustododial wallet if to have full control, but best to go for the ones with change address. If I should recommend a wallet for someone, I will prefer to recommend Electrum wallet, but Samorai wallet have some privacy feature like ricochet. Noncustododial wallet can be used to have full control but most of them only can be used for privacy, before they can also be used for privacy, it needs some technical knowledge.

[teosanru]

This is bad, KYC is okay and looks like a genuine concern but such sort of questions and that also from the Exchanges rather than any authority looks really strange, it's okay to say that some people do bring hacked stolen bitcoin on Exchanges but it's not ultimately the exchange's duty to ask questions regarding that, concerned authorities should only have the powers to do the same and at the same time exchanges shouldn't even be liable in such instances, all they should be liable is to provide info as to which user has done KYC and is that KYC accurate that's it.

[adzino]

See what KYC has turned to.

Bitstamp asks users to update the source of their crypto, citing regulatory compliance

Bitstamp now requires users to provide info like nationality, place of birth and tax residency, in addition to documents proving the origin of crypto and the annual income.

Major global cryptocurrency exchange Bitstamp continues increasing compliance efforts by requesting its users to provide more data like their source of wealth.

Exchanges were demanding for email before. From email to basic KYC requirements like name and home address. Exchanges with the excuse of compliance with anti money laundering policies and international regulation still go further to demand for more identities like drivers license, national Id card or international passport. The time may come when more countries will demand for registering of noncustodial addresses own by their exchange users. Now they are demanding to know the businesses their customers are making money from.

If all these information are leaked to hackers, this will be another big problem. Centralized exchanges looking for more ways to make hackers know more about people and this can be harmful.

If you are going to use a centralized exchange, you will have to comply with their rules. You don't have any other options. I guess all most all centralized exchange according to their terms of service can ask for the source of wealth/funds. They just don't do it very often because they know it is going to be a big hassle for them and their users.
Bitstamp probably wants to play safe or something. Anyway, it is inevitable. You eventually will have to provide all those information sooner or later.

[Poker Player]

If you are concerned about privacy, just use DEX but what they are asking for is no different from what a bank asks for when you go to open an account. They have to know the origin of the funds you are going to put in because of anti-money laundering policies, which I don't think is so much a question of them as of government regulation, as has been said:

This is not exchange, it's the government that is demanding a lot of these things to be fulfilled...

[CryptocurencyKing]

With the sort of details required for KYC on certain platforms, there seizes to be any form of anonymity in crypto currencies anymore. What then is cryptocurrency without anonymity. What we are experiencing with this sort of KYC is a tagging of users with certain addresses and this in itself is wrong.

Wanting not to know only my persona but also, my source of funds and tax records. Its no different from the government and for a fact, there is no telling whom can access the records in times where you would have want to conceal your privacy.

It too risky going through all those levels of KYC and in cases of hacks, the hacker might just have been saturated with so much information to use for whatever purpose that is sure not to serve you right.

[kaya11]

If you are concerned about privacy, just use DEX but what they are asking for is no different from what a bank asks for when you go to open an account. They have to know the origin of the funds you are going to put in because of anti-money laundering policies, which I don't think is so much a question of them as of government regulation, as has been said:

This is not exchange, it's the government that is demanding a lot of these things to be fulfilled...

The government policies are to be followed unless we go fully outlaws leaving us wanted in their eyes. It is normal for them to ask where did the money came from especially when the sum is huge. I've already passed my KYC on my local wallet years ago and I never had any troubles withdrawing funds. I could get 8k USD max in a day for withdrawals which I have never tried before. DEX are somewhat old school and the features are limited, Binance , there are only 3 exchanges I mainly used, Binance, Bittrex, Kucion. The rest are just back ups and for other purposes only. There is no much to offer when you use DEX and I have a bad experienced about it so I don't use it anymore.