Anonymity vs. KYC: The Pros and Cons of Cryptocurrency Exchanges

[EXMON]

Cryptocurrency is a tool that primarily provides anonymity and freedom from totalitarian government control. If we undergo the KYC process, we lose this privilege and our cryptocurrency ceases to differ from regular fiat currency. In such a case, the question arises - why use cryptocurrency at all? If we allow the government to control our financial transactions, we lose our freedom of choice and risk falling under the influence of a totalitarian regime. Therefore, I am convinced that preserving anonymity and freedom in the use of cryptocurrency is its main advantage, and any measures aimed at controlling financial operations should be approached with caution.

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[jokers10]

Many crypto exchanges require KYC only if a user needs to make transactions in fiat currencies. Where fiat deposits are involved, anonymity isn’t possible from the source of deposits (payment systems or bank cards).

And many like Binance then start requiring KYC for everything, and many even if don't ask KYC for every transaction have limits on transactions without KYC anyway. And that's why we expect DEX will develop as intensive as possible. As for me I never pass KYC in crypto so any type of KYC is unacceptable for me. If an exchange is requiring it just for fiat then okay, but more exchanges start asking it for everything and it is definitely not okay. Crypto should be free of KYC.

[stomachgrowls]

Many crypto exchanges require KYC only if a user needs to make transactions in fiat currencies. Where fiat deposits are involved, anonymity isn’t possible from the source of deposits (payment systems or bank cards).

And many like Binance then start requiring KYC for everything, and many even if don't ask KYC for every transaction have limits on transactions without KYC anyway. And that's why we expect DEX will develop as intensive as possible. As for me I never pass KYC in crypto so any type of KYC is unacceptable for me. If an exchange is requiring it just for fiat then okay, but more exchanges start asking it for everything and it is definitely not okay. Crypto should be free of KYC.

You could still make use of Binance but of course the limit wont really be that something that bad too if you are really just intending on trading up some assets from other coins which doesnt involved
some fiat conversion or withdrawals which is something that really requires kyc specially when you do make use of p2p.Same goes on other top exchange platforms which you would really be
still need to be verified if you do make use of this feature which does means that it is really  that inevitable if we do speak about kyc which i couldnt deny
that it is really that leaving you no choice specially when you are pulling away your funds.

[jokers10]

You could still make use of Binance but of course the limit wont really be that something that bad too if you are really just intending on trading up some assets from other coins which doesnt involved
some fiat conversion or withdrawals which is something that really requires kyc specially when you do make use of p2p.Same goes on other top exchange platforms which you would really be
still need to be verified if you do make use of this feature which does means that it is really  that inevitable if we do speak about kyc which i couldnt deny
that it is really that leaving you no choice specially when you are pulling away your funds.

As I said I never pass KYC for crypto and still can find some ways of doing so even if when exchanging with fiat. (And there's no way of using Binance without passing KYC, and I don't use it.) Of course it is not as easy as if to trust every place asking KYC and which I'll hardly trust, but it is at least possible. Of course this makes me pass by some interesting proposals but I still don't pass KYC anyway. I wish it will be more options of direct bitcoin payments in the future as it will simplify most things.

[Huppercase]

Hey everyone, I wanted to start a discussion around the topic of anonymity and KYC (know your customer) requirements in cryptocurrency exchanges. As we all know, there are exchanges that require extensive KYC verification, while others operate with little to no verification process.

On one hand, KYC can help prevent fraud, money laundering, and other illegal activities. It can also provide a sense of security and transparency for users who want to know who they're trading with and ensure that their funds are safe.

However, KYC can also compromise anonymity and privacy, which are often highly valued by cryptocurrency users. Some argue that the need for KYC goes against the decentralized and borderless nature of cryptocurrencies, and can even put users at risk of data breaches and identity theft.

So, what are your thoughts on exchanges with and without KYC? Do you prefer exchanges with strict KYC requirements, or do you value anonymity and privacy more and prefer to use exchanges with little to no verification process? What are the disadvantages and advantages of each approach? And what measures do you take to ensure your anonymity when exchanging cryptocurrencies?

Let's have an open and respectful discussion around this topic and hear everyone's perspectives. Looking forward to your input!


List of KYC data breaches.

Doing KYC and not doing have advantage and disadvantage, the advantage is for the exchange to weed out bad people, knows who they are dealing with and help to fish out users from countries that have been sanction, that is the benefits of doing KYC to any exchange. The disadvantage here is that exchanges are known for non-transparency, they can do whatever please them with people information. I have read where Binance leaked users KYC on the internet that was trending for weeks, such things are the thing we fear of not repeating by other exchanges.

[EXMON]

Doing KYC and not doing have advantage and disadvantage, the advantage is for the exchange to weed out bad people, knows who they are dealing with and help to fish out users from countries that have been sanction, that is the benefits of doing KYC to any exchange. The disadvantage here is that exchanges are known for non-transparency, they can do whatever please them with people information. I have read where Binance leaked users KYC on the internet that was trending for weeks, such things are the thing we fear of not repeating by other exchanges.

Benefits of KYC? Bad guys...? In the world, criminal and economic offenses involving fiat currencies occur on a much larger scale than with cryptocurrencies! And as for data leaks, take a look at this click.

[Smartprofit]

You could still make use of Binance but of course the limit wont really be that something that bad too if you are really just intending on trading up some assets from other coins which doesnt involved
some fiat conversion or withdrawals which is something that really requires kyc specially when you do make use of p2p.Same goes on other top exchange platforms which you would really be
still need to be verified if you do make use of this feature which does means that it is really  that inevitable if we do speak about kyc which i couldnt deny
that it is really that leaving you no choice specially when you are pulling away your funds.

As I said I never pass KYC for crypto and still can find some ways of doing so even if when exchanging with fiat. (And there's no way of using Binance without passing KYC, and I don't use it.) Of course it is not as easy as if to trust every place asking KYC and which I'll hardly trust, but it is at least possible. Of course this makes me pass by some interesting proposals but I still don't pass KYC anyway. I wish it will be more options of direct bitcoin payments in the future as it will simplify most things.

I also never use exchange services and trading platforms that require mandatory KYC and AML procedures. 

In my opinion, the value of cryptocurrencies lies in their alternativeness to the modern financial system.  Using cryptocurrencies is always a risk and responsibility.  If I send my bitcoins to the wrong address, then no one will reimburse me for my losses! 

However, if I take responsibility for the use of this financial instrument, then why would a third party require me to disclose confidential information? 

In my opinion, this requirement is illegal!

[justdimin]

Doing KYC and not doing have advantage and disadvantage, the advantage is for the exchange to weed out bad people, knows who they are dealing with and help to fish out users from countries that have been sanction, that is the benefits of doing KYC to any exchange. The disadvantage here is that exchanges are known for non-transparency, they can do whatever please them with people information. I have read where Binance leaked users KYC on the internet that was trending for weeks, such things are the thing we fear of not repeating by other exchanges.

Leaking of KYC is not the disadvantage of it, that is a hacking and you could get the whole hot wallet hacked too and your money would be stolen, that's not really a default state of it. The advantages and disadvantages should be seen from a legal stand point, if it is good legally then it is good, all the other things that illegal people do with it are beside the point because they do not want that to happen neither but it happens because some people are just bad.

I believe that exchanges should always ask for KYC because it makes it that much more legal and that makes it that much better for governments to accept it as it is as well if you ask me. The more legal it gets, the better for the users.

[jokers10]

...
However, if I take responsibility for the use of this financial instrument, then why would a third party require me to disclose confidential information? 

In my opinion, this requirement is illegal!

Because government wants to know everything about you and control you as much as possible. And it is natural for government. And if society will not resist an excessive interference then governments will collect as much control as possible. Bitcoin is one of an answers on that for lowering a pressure of over control. But if to expect that governments will ever stop collecting control, they won't. And by choosing bitcoin I say stop, I'm not a criminal and I don't want every my step being under control. The deal between me and gov is that I stay law-abiding and gov doesn't try to control everything in my life. And KYC everywhere is an example of over control as to me.

[o_e_l_e_o]

the advantage is for the exchange to weed out bad people

It is trivial for a criminal to buy your leaked KYC data on the dark web for a couple of bucks and sign up to any centralized exchange using your details. KYC does not help an exchange to "weed out" criminals.

Leaking of KYC is not the disadvantage of it, that is a hacking and you could get the whole hot wallet hacked too and your money would be stolen, that's not really a default state of it.

If I keep my coins in my own wallet, then I can take security precautions against them being hacked. If I hand over my KYC details (or my coins) to a centralized exchange, then there is absolutely nothing I can do to protect them and history has shown us time after time after time that centralized exchanges have awful security and are being hacked constantly.

I believe that exchanges should always ask for KYC because it makes it that much more legal and that makes it that much better for governments to accept it as it is as well if you ask me.

So you want the government to step in and have complete control over bitcoin just as they do with fiat? Um.... no?

[LUCKMCFLY]

Cryptocurrency is a tool that primarily provides anonymity and freedom from totalitarian government control. If we undergo the KYC process, we lose this privilege and our cryptocurrency ceases to differ from regular fiat currency. In such a case, the question arises - why use cryptocurrency at all? If we allow the government to control our financial transactions, we lose our freedom of choice and risk falling under the influence of a totalitarian regime. Therefore, I am convinced that preserving anonymity and freedom in the use of cryptocurrency is its main advantage, and any measures aimed at controlling financial operations should be approached with caution.

Well, the normal thing is that those who are crypto, for nothing in the world we should accept that the conditions are to give kyc, be it for Casinos, for Exchanges, but it is as you say, the Government through the licenses and demands makes the sites have What to adopt the special permissions and for them to be able to enjoy it, you have to comply with the requirements of kyc, it is somewhat unfair, but for this the way out is to go towards decentralized exchanges and decentralized casinos, which obviously is not the same as a centralized casino or a centralized exchange, but so far that is what it is.

[Who is John Galt?]

Well, the normal thing is that those who are crypto, for nothing in the world we should accept that the conditions are to give kyc, be it for Casinos, for Exchanges, but it is as you say, the Government through the licenses and demands makes the sites have What to adopt the special permissions and for them to be able to enjoy it, you have to comply with the requirements of kyc, it is somewhat unfair, but for this the way out is to go towards decentralized exchanges and decentralized casinos, which obviously is not the same as a centralized casino or a centralized exchange, but so far that is what it is.

Not only is this unfair, it's also unsafe. Governments, in an attempt to increase their own level of control over citizens, encourage, and thus actually make inevitable, the collection of sensitive personal information of citizens by numerous random organizations that are practically responsible for nothing. And when people get used to giving their personal data everywhere, numerous scammers will certainly actively use this (and already use it). Therefore, the widespread requirement of KYC is not just an inconvenience, it is an unjustified decrease in the level of privacy and security, which is especially critical for the modern digital world.