Why is KYC mandatory in CEX?

[Altcoiner007]

 Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

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[BlackBoss_]

KYC is not mandatory in all centralized exchanges.

No-KYC Exchange Encyclopedia
kycnot.me

Main reason why centralized exchanges apply mandatory KYC, it's by their national regulation and government requires exchanges in that nation to apply mandatory KYC on customers.

Another reason is not from governments, regulations but from scam attempt. Scammers will pull their mandatory KYC cards to scam their customers, steal customer fund and run.

[DaveF]

Because, for larger exchanges it's also easier.

Everyone gets KYC so they don't have to worry about regulators / governments coming back later and forcing them to. It's already done. It also keeps them to a certain extant from dealing with people they should not be. Yes, someone could connect through a VPN and use fake ID, but the CEX can still go back to whatever government agency was asking them about that user with some info and show they at least tried to keep things legit.

-Dave

[NotATether]

Exchanges require KYC in order to stop fraud like stealing other people's bitcoins and cashing them out, money laundering, scams, hacks, and so on. Most countries require an exchange to have specific KYC measures because they are legally allowed to operate there.

Although I will say that requiring KYC for very small transactions is a bit of a stretch, as it's not really possible to do much with it in the first place.

[hopenotlate]

Every day more and more countries are implementing regulations related to cryptocurrency exchanges they need to adapt to these regulations and comply with anti-money laundering and counter-terrorism financing  laws, which require the verification their users' identity, not to mention KYC procedures also prevent ecxhanges from being used for illegal activities such as frauds and scams.
Also implementing hard KYC requirements makes exchanges gain trust to the eyes of regulators and authorities.
Lastly regarding the airdrops purposes : implementing KYC prevents airdrop abusers who creates multiple accounts to get a bigger share of the drop.

[Adbitco]

As the name implies "centralized exchange" meaning your details aren't hidden and they could asked for your personal verification passport or whatever that proves you a legal citizen of your country. This is being implemented for transparency and to avoid money laundering by unscrupulous user who may tends to use the exchange for mischief and fraudulent activity.
I think with kyc exchanges could or will be able to know their customers if there are financial bad records. However, if you don't like revealing your details then I will urge you to start making use of Decentralized exchange (Swap) if your coin and tokens are being listed over there, this helps in hiding your identity and you remain anonymous.

[Charles-Tim]

KYC is not mandatory in all centralized exchanges

But it is worth knowing that they can force customers to verify their account at any time. There is nothing better than decentralized exchanges in this regard.

kycnot.me

I can see Bisq as the first, that is excellent because it is a decentralized exchange. But I am wondering why Kucoin is still among the list of no KYC exchanges when it is now mandating KYC.

Exchanges require KYC in order to stop fraud like stealing other people's bitcoins and cashing them out, money laundering, scams, hacks, and so on. Most countries require an exchange to have specific KYC measures because they are legally allowed to operate there.

Coins stolen and sent to an exchange and seized does not require KYC, it only require blockchain analyses. Some people are now not hacking people's bank directly, they first use fake KYC and use the money to buy coins on the centralized exchanges. Some people trade conveniently on the centralized exchanges with other people's KYC. Money are laundered in legit businesses and most of the money are in banks.

[Mia Chloe]

Many centralized cryptocurrency exchanges require users to complete KYC (Know Your Customer) verification. This is mainly because they must follow government rules to operate legally and to prevent scams and fraudulent activities. These rules are in place to make sure everything is transparent, accountable, and secure in the world of cryptocurrencies. While some exchanges have looser KYC rules, the well-known and trustworthy ones prioritize strict compliance to keep users and regulators happy. On the other hand, decentralized exchanges (DEXs) don't  have KYC requirements because they work differently. So, if you want more privacy and control, you might consider using a DEX as an alternative.

You might want to check this thread to see some other non kyc exchanges you can try
Current list of exchanges without KYC

[paid2]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

It depends on the market (regulated or not) and on the country. In all cases, CEXs that impose KYC do so to comply with local regulations and thus protect themselves and their legal right to operate in the sector in question.  If not, there are other reasons imaginable: private data is worth money, and CEXs are there purely to make money. For example, Coinbase has been condemned in the past for participating in the resale of their customers' data.

If we follow your question to its logical conclusion, it would be better to ask why governments and regulators are so keen on KYC, than to ask why some CEXs apply laws and regulations.

I recommend you to read GazetaBitcoin's excellent article, which is very instructive : 12 years later and people still don't know to use Bitcoin nor what it's good for

[Bureau]

Bitget has been doing such policy changes for sometime now. A few months back, for upto 50k, KYC was not mandatory. Then a few days back they again changed their policy and made KYC mandatory for every user.

I feel they are using KYC as an instrument to get new users. Earlier they had a signature campaign in the forum when they relaxed the KYC norm. I guess as soon as they hit a target of a certain number of users they abruptly closed the campaign and again made KYC mandatory.

CEX as they are centralized are know to use such kind of marketing tricks to gain new users. I remember Bitget relaxed KYC as soon as Kucoin implemented mandatory KYC. It is how churning of users are done by CEX like Bitget. It is better to use a DEX if you are someone who doesn't like going through KYC and please stay away from airdrops. They are a big waste of time after 2019.

[livingfree]

Privacy is important when it comes to Cryptocurrency,

In every move that we make online, not just in cryptos.

so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

They're complying to what's imposed by their government and that's not new these days because almost every exchange is asking about it.

Anyway, I think that you're with bitget and despite with this discussion, you're getting the exposure that you're trying to get due to the fact that you've started a discussion where many are interested to be part of.

[Zaguru12]

kycnot.me

I can see Bisq as the first, that is excellent because it is a decentralized exchange. But I am wondering why Kucoin is still among the list of no KYC exchanges when it is now mandating KYC.

The site/app is currently been rewritten and only few maintenance will done and the new version is where all changes will take effect on. If you have suggestions you can actually send it out to Pluja the confirmed admin of the kycnot.me here on the forum. He had requested that suggestions on listing, delisting and also update should be sent here https://gitlab.com/kycnot/services/-/issues

The site/App also has its ANN thread already on the forum and I think by the time the new version comes out we will see the likes of KuCoin been removed there

[Joseph-P]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

KYC helps prevent money laundering and illegal activities on CEXs like Bitget. It's a regulatory requirement in many countries to ensure compliance.

[Charles-Tim]

You might want to check this thread to see some other non kyc exchanges you can try
Current list of exchanges without KYC

Maybe it can be useful, but Ratimov new thread about centralized no KYC exchanges has been pointed to by BlackBoss_ which contains more exchanges including the one on the old thread which is now locked. It is also worth knowing that they are not just no KYC exchanges, they are centralized no KYC exchanges. Which means the exchanges do not require KYC, but they can force any of their customers to get verified at anytime which can be after the user's coin has been seized.

[ultrloa]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Because of regulation.

If they want to target global crowd especially on US or strict countries they need to pass some requirements that can make their business legitimate and it includes KYC to their costumers.

But if the CEX doesn't care much about global markets and target only certain areas where law is not much strict as first world countries have then some of them doesn't require KYC.

Although its good not to submit KYC but you also need to know or consider the risk since its more risky if there's no government regulate those exchange.

[PaulPeterPedro]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

KYC can be used to recover lost or forgotten passwords on platforms like Bitget. This is because the information collected during KYC can be used to verify the user's identity and confirm that they are the account's rightful owner.

[Charles-Tim]

KYC can be used to recover lost or forgotten passwords on platforms like Bitget. This is because the information collected during KYC can be used to verify the user's identity and confirm that they are the account's rightful owner.

On the centralized exchanges that I have recovered lost or forgotten password, only your username and email are enough for the recovery. But it can nit help you if you enable 2FA.

For 2FA
You will only believe in what they exchanges offer you. On this forum, did you know that you can stake your bitcoin address which can be used to recover you Bitcointalk account if it is hacked. Exchanges can go for something like that, mandating their users to stake a bitcoin address which may not be a funded address, but having access to the private key so that is if 2FA secret code is lost, the person can recover his account back by signing a message with his bitcoin address staked on the exchange. But centralization did not make it work this way.

[sokani]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

KYC is not compulsory in all centralized exchanges. MEXC, CoinEx and Bybit still operate as a non KYC exchanges but they have a withdrawal limit. Some of these CEXs operate in a country that has lax crypto laws.

In most cases before centralized exchanges are given permission to operate in a particular territory, they are required by the government to have a well structured KYC procedure that all customers must undergo. The KYC is a regulatory compliant measure that most centralized exchanges setup to monitor, track and report any suspected activity to the authorities like scam and money laundering.

[dragonvslinux]

It's just to do with fiat currencies that require permission from governments in order to be transacted by a business, in nearly all cases this is with KYC. There are still plenty of crypto to crypto exchanges that don't require any KYC however. This is why many people prefer to use these exchanges, or P2P services, rather than larger exchanges that deal with dollars, pounds, euros, etc.

[mk4]

To summarize it: most countries' governments require these financial services platforms(exchanges in this case) to demand for AML/KYC — supposedly to have a record of the users to have a trace if ever a scammer/hacker deposits funds to the platform; and if these platforms don't comply, the government shuts them down.

[Maslate]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Most exchanges require KYC. If an exchange is operating legally, you can expect that they will require you to complete KYC verification when creating your account, regardless of the purpose. Although it's just an airdrop, they want to prevent abuse. It's not entirely free; they give it with the expectation of some return, possibly to attract more exchange users. It's a take-it-or-leave-it situation: either you comply, or you won't get a chance to participate in an airdrop.

[Wend]

Privacy is important to users, but to centralized exchanges, they are like a company and they need to comply with the law if they want to stay in business. Furthermore, KYC also has advantages such as avoiding fraud, money laundering, hacking...KYC has many benefits. But what people fear is whether our identities are really protected by exchanges or if they are using them illegally. Everything has pros and cons and depending on each person's preference we choose CEX or DEX.

[Jawhead999]

Nope, privacy is pointless in cryptocurrency because most of cryptocurrency are centralized and not open source. Only few cryptocurrency that care with privacy, one of them is Bitcoin. Since not all people are care with privacy too and these big CEX get pressured by government to enable KYC mandatory rule, they have no choice.

Let's imagine you're the founder of a big CEX and SEC force you to enable KYC rule, will you choose to enable KYC rule or shut down your exchange?

[avikz]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Centralized exchanges are registered businesses. So they have to follow a certain level of compliance in order to operate. All over the world, KYC is a mandatory compliance for a business operating in financial field. Also it is very important to comply with the local and international anti-money laundering law. That's why every centralized exchanges have made KYC compulsory.

If you want to avoid KYC, use DEX or swap services. There are multiple options available.

[Altcoiner007]

Every day more and more countries are implementing regulations related to cryptocurrency exchanges they need to adapt to these regulations and comply with anti-money laundering and counter-terrorism financing  laws, which require the verification their users' identity, not to mention KYC procedures also prevent ecxhanges from being used for illegal activities such as frauds and scams.
Also implementing hard KYC requirements makes exchanges gain trust to the eyes of regulators and authorities.
Lastly regarding the airdrops purposes : implementing KYC prevents airdrop abusers who creates multiple accounts to get a bigger share of the drop.

So exchanges requiring KYC are operating legally. Cool. That's understandable.Talking about airdrop hunters. I bet you're right. Multiple accounts to earn  more rewards than normal
.

[icalical]

Most of the centralized exchange are subjected to the government regulations, some of the regulation including preventing money laundering. Some users of the exchange might deposit some money that are gained with illegal activity, and then swapping those 'illegal' money to the clean money that are circulating on the exchange, by using KYC government can track if some illegal money from a certain person are deposited into the CEX.

[KiaKia]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

You want to get airdrops from Bitget? You need to hold some certain amount of BGB token which is the native token of Bitget exchange.

Bitget exchange is a centralized exchange and it has nothing to do with privacy, it's users risk for moving their coins from their crypto wallet and send into any exchanges crypto address, if privacy is very important to you all you need to do is to avoid all the centralized exchanges and find a decentralized exchanges.

I think you need to know the meaning of Centralization, this will clear all your confusion about why centralized exchanges need to ask for KYC from their users, everything that's centralized must go with KYC mandatory, it's important to keep their business neat from the government's wrath.

[GeorgeJohn]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Many exchange doesn't allow not have been done your verification with them, the objectives of exchange even some of the gambling platforms to emphasize very much in KYC verification is that they want have your documents and ensure its real because of scam, most especially exchanges need to be proactive in KYC verification so that someone will not commit a scam crime and go Scott free, the major reason while KYC is needed is to know you as a customer from the beginning to end, should Incase if their is a necessary case that requires your documents they can attest that they know you quit well.

[Juse14]

The simple answer is, why does the government impose regulations on centralized exchanges to enforce KYC, I think that is enough to answer your question, if it comes to privacy or anonymity it is indeed very important for everyone in general, but what can you do, the government enforces this also for security so that it requires exchanges to enforce KYC, if they were not required to enforce KYC I think they (CEX) would not do it considering that there are so many users who are against KYC for various reasons.

But don't worry, there are still many exchanges that don't require KYC, you can still find them.

[Blitzboy]

KYC checks whether the user is authentic, not how much money is transferred. Even though crypto privacy is vital, exchanges combine traditional banking with decentralized crypto. Those in charge. They want to limit money transfers, terrorist funding, and tax evasion. They must be able to face every exchange. KYC follows.

[Mpamaegbu]

KYC is not mandatory in all centralized exchanges.

I don't want to believe there's truly a Cex that won't in the actual sense call for KYC. It might take a while to ask but it will definitely come up later. It was the same way with Binance when it launched in 2017. KYC free and all that (even no commission, trading) on Binance until at some point it became mandatory for its subscribers to do before they could make withdrawals. I know it's not solely the making of these exchanges but the regulations they've to face and comply with from monitoring bodies and government agencies.

[salad daging]

Got an email reply from Bitget about the rules that apply now KYC will start October 1 so users are still free now to make withdrawals without KYC.

This is already a legal regulation and many others have explained so you should not be surprised however an exchange will definitely implement a KYC system for all users and you should know that this applies to all its customers not certain users with large transaction amounts.

As for preventing other things, it makes sense, especially if it's a centralized exchange there must be more control so it won't be private anymore.

[Joseph-P]

Nope, privacy is pointless in cryptocurrency because most of cryptocurrency are centralized and not open source. Only few cryptocurrency that care with privacy, one of them is Bitcoin. Since not all people are care with privacy too and these big CEX get pressured by government to enable KYC mandatory rule, they have no choice.

Let's imagine you're the founder of a big CEX and SEC force you to enable KYC rule, will you choose to enable KYC rule or shut down your exchange?

So are you entire denying the fact that KYC enhances security? I dont agree with you that exchanges implement it due to government pressure. Many have implemented it solely because of security issues as opposed to what you claim ser

[Chibaba]

Bitget has been doing such policy changes for sometime now. A few months back, for upto 50k, KYC was not mandatory. Then a few days back they again changed their policy and made KYC mandatory for every user.

I feel they are using KYC as an instrument to get new users. Earlier they had a signature campaign in the forum when they relaxed the KYC norm. I guess as soon as they hit a target of a certain number of users they abruptly closed the campaign and again made KYC mandatory.

CEX as they are centralized are know to use such kind of marketing tricks to gain new users. I remember Bitget relaxed KYC as soon as Kucoin implemented mandatory KYC. It is how churning of users are done by CEX like Bitget. It is better to use a DEX if you are someone who doesn't like going through KYC and please stay away from airdrops. They are a big waste of time after 2019.

I think policy flexibility isn't out of place if the policy is user's centric; besides crypto industry is fast evolving such that healthy competition should be a welcome development and I think their recent yield to mandatory KYC (at least level 1) should be borne out of popular demand particularly from user resident in the highly regulated areas.

I also cant relegate the use of DEX cos tbh I use it occasionally but its complexity, inability and difficulty in recovery of password and seed phrases is a huge concern, not to mention the extra cost for gas fee and its complex UI.

Let's embrace KYC  mate cos it comes with huge benefits

[Ojima-ojo]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Centralized exchange will always require KYC this is a regulatory demand and not exchange in reality,  exchange is out for business but to get licensed,  an exchange will need to comply with some set of rules and requirements that the exchange must comply with before there are issued a license,  and for that we must have to come to term with the fact that even though Bitcoin is decentralized still some of it services are highly centralized such as exchanges and other BTC payment gateways that we have and providing services for Bitcoin users.


The only exit from such demand if you have high value for privacy is to use only decentralized exchanges anytime you want to exchange your Bitcoin,  if not keep holding your Bitcoin in your wallet that is the best safety and privacy measures

[Zlantann]

Privacy is important to users, but to centralized exchanges, they are like a company and they need to comply with the law if they want to stay in business. Furthermore, KYC also has advantages such as avoiding fraud, money laundering, hacking...KYC has many benefits. But what people fear is whether our identities are really protected by exchanges or if they are using them illegally. Everything has pros and cons and depending on each person's preference we choose CEX or DEX.

The fear is that customer personal information can be stolen or sold to scammers or other businesses. This information is also prone to hacks that can have some negative consequences. There are also cases where employees of the CEX platform leak client's data to the public, so they cannot be trusted. DEX will always be a good option regardless of the benefit most CEX claim to offer.

Most of the centralized exchange are subjected to the government regulations, some of the regulation including preventing money laundering. Some users of the exchange might deposit some money that are gained with illegal activity, and then swapping those 'illegal' money to the clean money that are circulating on the exchange, by using KYC government can track if some illegal money from a certain person are deposited into the CEX.

They have to either abide by these regulations or face severe sanctions. Government policies are also dynamic which means that these CEX will have to change their policies periodically. CEX users are always encouraged to go through their terms of service to be aware of current developments.

[Cookdata]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Centralized exchanges are group of organization that are making money for their own purpose by providing a centralized platform fr people to trade their coins together but government think that it's not all coins with value that are actually legit, they could be stolen from another since majority of them is pseudonyms and tracking will be something they can't overcome. Hence, they introduced an element call anti money laundering/know your customer( AML/KYC) just to know who deposit and who withdraw coins from these platforms and tracking becomes less stressful for them but this is at the cost of intruding ones privacy, it's even against the standard of bitcoin.

Some of these centralized exchanges also have the habit of selling people's documents and identification to the wrong people where they sell data for money and this ID are been resold to the bad actors which they used to carryout bad things. You don't want to wake up and found out that your pictures is everywhere with Bounty for wanted for criminal activity. KYC isn't a good thing to trust.

[Altcoiner007]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Because of regulation.

If they want to target global crowd especially on US or strict countries they need to pass some requirements that can make their business legitimate and it includes KYC to their costumers.

But if the CEX doesn't care much about global markets and target only certain areas where law is not much strict as first world countries have then some of them doesn't require KYC.

Although its good not to submit KYC but you also need to know or consider the risk since its more risky if there's no government regulate those exchange.

This makes it real clear now. I just read they're operational in 60 countries spaning across USA, Canada, Australia, Europe, Korea, Japan, LATAM, India, South East Asia, Africa. Since it is a legal requirements for them to be allowed operation in those countries, I see it's a needed enforcement.

[348Judah]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Bitget is a centralized exchage that does not require for kyc before, but now they have started to request for such and according to how i heard, it is when you're withdrawing a particular amount of money that they subject you to kyc, but we cannot be sure if we are not reading their policy first as they would have effect a change on their ToS, so being a user, i will advise you to revisit their platform and read their terms and conditions as stated, if you're still using ba centralized exchange, know that you're not 100% free from kyc, the request may come in anytime.

[goldkingcoiner]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Its the law. Or rather it is simply the exchanges following government regulations so that in a legal case, they are not the ones held responsible. Because they could lose a lot of money and the owners might end up in prison if they were at fault for say, terrorist money laundering schemes. Which I imagine is one of the worst case scenarios but it is a life- and business ruining event. Obviously the exchange owners do not want that. They would rather keep doing business.

But the real reason why CEXes follow the regulations is because they are all centralized and the government knows who to hold responsible. I doubt the owners care about forcing people to do KYC or stopping certain countries from trading on their platforms.

[ndutndut]

True, now KYC is mandatory for most centralized crypto exchanges as it is a financial services business. Apart from that, due to market skepticism, KYC on centralized exchanges is very necessary. Of course, one other reason to avoid money laundering and other illegal activities.

Because as time goes by, diversity in the current market is increasing along with the increasing number of cryptocurrencies being traded, making crypto exchanges increasingly popular among the public. Ultimately making governments in each country impose more serious regulations on centralized exchanges. In my country all local Cexes all require KYC, maybe in addition to preventing money laundering the government aims to also collect taxes from each user because all user identities are very easy to track because of this KYC.

[Afnan_faizah]

I think government want to reduce the use of cryptocurrency for illegal transaction so government want to increase it trace ability. honestly I am okay with KYC as long as they only use it prevent criminal activity. but I am afraid that government do abuse of power by force the citizens to pay tax or pay anything to increase country revenue which they will corrupt it. honestly I think the taxation system in my country is unhealthy and weighing the citizen, in my opinion those people who work in that related institution are too slick. I hope there are more wise, good and honest people who manage my country in the future and replace the bad people. I hope for the better in 2024.

[letteredhub]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

There are a number of decentralized exchanges you can make use of if you are not comfortable giving out your data to third party entity. We cherish and priotize privacy in this world of crypto but there are channels we wanna get through with that would require kyc from you and it's required because that's part of  the policy that permits the operation of those Centralized exchanges as required by the authority that authorized their legitimacy.  KYC are required for data reference purposes, security check and others, but what makes many crypto enthusiasts frown at it's how controversial and regulatory the government uses it against us.

[buwaytress]

Think about it like this. If you wanted to open an exchange and wanted for it business legitimacy, employment rights, tax rights, with all the permits and licenses that come with it, then you have no choice but to comply with those regulations granting you that legitimacy.

You'd also (for marketing purposes) would like to know it's not a million bots claiming airdrops but actual users who you could later monetise.

As a user, you want "free" shit, be prepared to give something else in return. Your identity.

Don't like CEXs and can do without airdrops? Whoa, P2P!

[Odohu]

Centralized exchanges are registered in jurisdictions as a business entity. Part of this registration requires they ensure their customers are legally allowed to do business in those jurisdiction and also to comply with laws such as anti money laundry laws. There is also the need to ensure that such exchanges are not used for other negative financial purposes such as drug trafficking, terrorism financing and others. So KYC for CEX is mostly the requirement of the government where they are registered in.

[Vickysagar]

Well, you can simply not use exchanges with KYC. There are a lot of P2P exchanges. KYC is required mostly because governments are watching them and won't let them work otherwise.

[Jawhead999]

So are you entire denying the fact that KYC enhances security? I dont agree with you that exchanges implement it due to government pressure. Many have implemented it solely because of security issues as opposed to what you claim ser

If the centralized exchange implement KYC because they said it's to enhances their security, it's a bullshit.

Do you think if there's a customer admitting he lose all of his funds because of hacked, the exchange will refund all the funds? nah. They're just collecting every customers' personal identity and you will not know what they will do next, you're also don't know how they're store your identity.

Every centralized exchange is prone to get hacked.

[bluebit25]

At a basic user level, I think KYC is the bare minimum to keep yourself safe while using any CEX, but depending on the purpose of use, one can use thousands of accounts KYC pass. To be honest, sometimes I really want to protest the meaninglessness of a cyberspace where identity becomes unconvincing, but as a habit, I find that whether I like or hate this issue, it's okay there is no difference.
I remember some CEX's in the past that leaked personal information of users, and I also find it very funny that confidential identity is just a term we think it is, so there are many options about whether to accept it or not?

I think it's important to be proactive in using and choosing appropriate services.

[OcTradism]

If the centralized exchange implement KYC because they said it's to enhances their security, it's a bullshit.

If they tell this, it's bullshit.

KYC only help exchanges to obey governmental regulations and avoid troubles with governments. It does not help to increase their exchange security because security belongs to different thing and it is built and maintained by different infrastructures.

Why KYC is extremely dangerous – and useless

[Wend]

Privacy is important to users, but to centralized exchanges, they are like a company and they need to comply with the law if they want to stay in business. Furthermore, KYC also has advantages such as avoiding fraud, money laundering, hacking...KYC has many benefits. But what people fear is whether our identities are really protected by exchanges or if they are using them illegally. Everything has pros and cons and depending on each person's preference we choose CEX or DEX.

The fear is that customer personal information can be stolen or sold to scammers or other businesses. This information is also prone to hacks that can have some negative consequences. There are also cases where employees of the CEX platform leak client's data to the public, so they cannot be trusted. DEX will always be a good option regardless of the benefit most CEX claim to offer.

There is no denying the vulnerabilities that KYC causes but to say that DEX is a better option than CEX I do not think so. I don't believe everyone here doesn't use CEX, even many people still talk bad about CEX every day but still use it silently. We cannot deny the convenience that CEX brings. If you are a day trader, you don't use CEX then what do you use to make profits? Futures traders, or even sharks, use CEX if they want to trade or sell large amounts of assets. We shouldn't deny that about CEX.

[Japinat]

Exchanges require KYC in order to stop fraud like stealing other people's bitcoins and cashing them out, money laundering, scams, hacks, and so on. Most countries require an exchange to have specific KYC measures because they are legally allowed to operate there.

Although I will say that requiring KYC for very small transactions is a bit of a stretch, as it's not really possible to do much with it in the first place.

You’re right. Imposing mandatory KYC is done so that all users will be protected from all forms of fraud, thus maintaining their assets privacy throughout their transactions. However, those disreputable and shady exchanges are also taking advantage from KYC verification by easily stealing funds from their users, hence making some of their clients easily fall on their traps.

[bayu7adi]

In my country, official cryptocurrency exchanges enforce Know Your Customer (KYC) procedures to prevent money laundering practices, as well as to facilitate the deduction of cryptocurrency taxes through the relevant exchange platforms. Regardless of the size of the cryptocurrency being transacted, all users must undergo KYC verification in order to initiate withdrawals of their funds.

The Indonesian government imposes a 0.1% tax on each crypto-fiat transaction and vice versa. The more frequent the trading activity, the higher the tax liability for the trader. Tax data is reported to the government using my personal KYC information and is displayed in real-time on the user dashboard.

Here's an example of the tax deduction display for a trade I conducted on a local exchange in Indonesia.

[Doan9269]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users,

Exchanges are regulated and bitcoin is not, for this exchanges being regulated, one of their requirements needed is KYC because it's part of their conditions signed, also know that government will always make demands on tgiw information anytime from them in case of any investigation on AML and other fraudulent activities, as long as they are centralized, they already know by default that KYC is what they can't escape.

[kryptqnick]

As others have explained, it's usually enforced because exchanges don't want to be sued for not complying with AML legislation. Of course, it can also help exchanges perform their own analysis to minimize the risks of criminals using their services for malicious purposes. But I agree that KYC is often enforced too much. It makes sense to me that people who are dealing with significant amounts of money should provide some documentation because there's a rick of big-scale money laundering. But if a person's dealing with small amounts, it's highly unlikely that it's anything that should be of interest to the authorities. So the balance between fighting crime and respecting privacy is not in place when there's a KYC, regardless of the amount of money in question.

[Blitzboy]

As others have explained, it's usually enforced because exchanges don't want to be sued for not complying with AML legislation. Of course, it can also help exchanges perform their own analysis to minimize the risks of criminals using their services for malicious purposes. But I agree that KYC is often enforced too much. It makes sense to me that people who are dealing with significant amounts of money should provide some documentation because there's a rick of big-scale money laundering. But if a person's dealing with small amounts, it's highly unlikely that it's anything that should be of interest to the authorities. So the balance between fighting crime and respecting privacy is not in place when there's a KYC, regardless of the amount of money in question.

Yeah, exchanges enforce KYC to comply with AML. But the "one-size-fits-all" approach is incorrect. Its like finding gold in sand. Small crypto players may unintentionally violate their privacy due to the same regulatory web as large ones. Its the silent loss of privacy rights. Exchanges should use a tiered KYC approach where information requirements increase with transaction volume. Privacy is both a right and a cornerstone of decentralization.

[Maslate]

As others have explained, it's usually enforced because exchanges don't want to be sued for not complying with AML legislation. Of course, it can also help exchanges perform their own analysis to minimize the risks of criminals using their services for malicious purposes. But I agree that KYC is often enforced too much. It makes sense to me that people who are dealing with significant amounts of money should provide some documentation because there's a rick of big-scale money laundering. But if a person's dealing with small amounts, it's highly unlikely that it's anything that should be of interest to the authorities. So the balance between fighting crime and respecting privacy is not in place when there's a KYC, regardless of the amount of money in question.

Yeah, exchanges enforce KYC to comply with AML. But the "one-size-fits-all" approach is incorrect. Its like finding gold in sand. Small crypto players may unintentionally violate their privacy due to the same regulatory web as large ones. Its the silent loss of privacy rights. Exchanges should use a tiered KYC approach where information requirements increase with transaction volume. Privacy is both a right and a cornerstone of decentralization.

I don't think exchanges have much difference from banks. When you open an account at a bank, you are required to provide information and documents to comply with KYC regulations, and there are no exceptions to that rule—it applies to everyone, regardless of the amount you deposit or withdraw. So, we should not be surprised if exchanges require KYC documents and information, as they are simply following the mandates from their regulators.

[Dr.Bitcoin_Strange]

I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

KYC is not for anyone, whether they are transacting a huge or small amount of Bitcoin, for security and privacy sake. CEX requires KYC because that is also one policy that they need to follow before they can gain authorization for operation. Although not every CEX makes it mandatory for you to pass KYC before you can withdraw from the exchange, Kucoin, MEXC, and some other CEX can allow you to deposit and withdraw without having to pass KYC, but they have a daily limit on withdrawals if you have not passed KYC. There are some P2P exchanges (e.g., Bisque) where you don't also need to pass KYC before you can buy or sell Bitcoin, but some of those CEX don't have enough liquidity.

[coinerer]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Not all CEX have made kyc mandatory yet many exchanges can be used without kyc but popular and reputable exchanges have made kyc mandatory like Binance, Kucoin etc. The reason for making kyc mandatory is to add p2p facelifts and keep customers away from corruption.  However, they maintain customer privacy and kyc documents are secured with a special encryption method. so kyc is not a problem for any reputable CEX

[JunaidAzizi]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

As you told privacy is important and if it comes to cryptocurrency then it will be more important. So the exchange does this just for the protection of their users. It secures to not do any illegal activities like money laundering because every user is known to them so it is difficult to do so. This KYC helps us to protect from any fraudulent activity or scam which is the basic need for users. In the case of Aridrops, they provide tokens to a lot of users so in that case KYC is important If Aridrops does not ask about personal information then maybe it will close you to some type of scams.

[Z-tight]

However, they maintain customer privacy and kyc documents are secured with a special encryption method. so kyc is not a problem for any reputable CEX

This is not true. You cannot be certain that your data is safe with centralized exchanges, so many exchanges and services that hold people's data have provably been hacked and the stolen data being sold in the black market. These exchanges promise to keep your data safe, but you are not sure which of them is next to be hacked or if your data would even be sold for a few dollars in the dark web if that happens.

[Renampun]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

afaik, exchanges that previously did not require KYC have now changed to requiring KYC because developers are under considerable pressure from governments in several countries. Moreover, currently Bitget has quite high daily transactions so that in order to survive they have to comply with the government and its regulations, but if you really don't like doing KYC, you should avoid using CEX, just use P2P which doesn't require KYC.

[DVlog]

I think government want to reduce the use of cryptocurrency for illegal transaction so government want to increase it trace ability. honestly I am okay with KYC as long as they only use it prevent criminal activity. but I am afraid that government do abuse of power by force the citizens to pay tax or pay anything to increase country revenue which they will corrupt it. honestly I think the taxation system in my country is unhealthy and weighing the citizen, in my opinion those people who work in that related institution are too slick. I hope there are more wise, good and honest people who manage my country in the future and replace the bad people. I hope for the better in 2024.

Governments are concerned about illegal activities through cryptocurrencies. And they think that most of this activity is done through cex like Binance. They have a large user base and their P2P system is widely used all over the world. SEC is targeting these exchanges by saying they are involved with these types of activity. So they do not have any other option but to force their user to do KYC. If someone is not doing anything illegal they shouldn't be afraid of it or if someone thinks they should not share their identity then dex or P2P is the best option.

[Quidat]

I think government want to reduce the use of cryptocurrency for illegal transaction so government want to increase it trace ability. honestly I am okay with KYC as long as they only use it prevent criminal activity. but I am afraid that government do abuse of power by force the citizens to pay tax or pay anything to increase country revenue which they will corrupt it. honestly I think the taxation system in my country is unhealthy and weighing the citizen, in my opinion those people who work in that related institution are too slick. I hope there are more wise, good and honest people who manage my country in the future and replace the bad people. I hope for the better in 2024.

Governments are concerned about illegal activities through cryptocurrencies. And they think that most of this activity is done through cex like Binance. They have a large user base and their P2P system is widely used all over the world. SEC is targeting these exchanges by saying they are involved with these types of activity. So they do not have any other option but to force their user to do KYC. If someone is not doing anything illegal they shouldn't be afraid of it or if someone thinks they should not share their identity then dex or P2P is the best option.

Government would really be loving on touching everything and this is why that anything that touches up fiat and other things correlated to it or simply getting in line with fiat and various centralized things
then it would be understandable that they would really be involved into it and there's no escape to that. You could still make use of known CEX platforms that we do have as of today but it would really be entitizing you to have that kind of verification since you cant really make use outmost of its features like p2p or something like that or having restrictions or small limits when it comes to deposit or withdrawal on which it do really sucks if you dont really comply with those simple verifications but its true that you could really still make use of the platform but of course with limited features or usage
on which it would be leading you no choice but to comply and submit those KYC but well you do still have the option on not to and it would really be entirely depending on your needs.

[The Cryptovator]

CEX Means Centralized Exchange which indicates it has been controlled by central authority. So basically all the exchanges operate worldwide and cooperate with legal authorities. Exchange is obliged to provide users data in case any legal authority asks. So they are forcing us to pass KYC by submitting our legal documents. Nowadays it's hard to find exchanges without KYC. Though there were a few exchanges like KuCoin where KYC wasn't mandatory there were withdrawal limits. But day by day all the centralized exchanges requiring pass KYC to use the exchanges.

[yazher]

Another thing is, when it comes to airdrops the owner of that project has some way to prevent duplicates and one of them is to make their participants do KYC in order to prevent them from getting double rewards or sometimes this is their way to not distribute the rewards for others because in the first place, they tricked their participants and they just implemented these rules in the last minutes when they are about to distribute the rewards for airdrops or bounties.

[Silberman]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Those are the ideals behind bitcoin which created this market, but you cannot hope for the governments to abide to them right? Why should they? When what they have pursued for a long time is the complete opposite and they do not want a single transaction to be out of their scrutiny, this is why they are pushing so hard for the disappearance of cash by limiting what you can do with it, and it is also why they are pushing for people to use their CBDCs as this will put them in complete control of your finances.

[Z-tight]

Another thing is, when it comes to airdrops the owner of that project has some way to prevent duplicates and one of them is to make their participants do KYC in order to prevent them from getting double rewards

Too many of these airdrops are scams and they require their participants to submit kyc information to them, which they will later sell to bad actors in the black market for a few dollars. I don't recommend users to give their data to any service, but i can understand if they give this data to centralized exchanges, but for airdrops or faucets, it is a no for me, it is surely not worth it to pass kyc because of worthless stuffs like airdrops or faucets, the risk outweighs the benefits.

[Zee27]

KYC is not entirely a bad implementation but it varies on the various exchanges in the sense that some are quite easy and doesn't require in-depth information on you as a customer so your privacy is still respected. Lol I remember when I had to do KYC on Bybit I felt like they were being too extreme but I knew it was necessary. You asked about Bitget, I think theirs is quite flexible.

[Bananington]

If having the knowledge already that CEX is more controlled that a decentralized exchange, it should be clear that it is mandatory to complete a KYC verification on a CEX before transaction in crypto related services is approved.
No need for anonymity in a CEX, so why should completing a KYC be a problem?

The issue I am bothered about is that of not having enough knowledge on a particular CEX platform before registering or completing a KYC verification. This is when ignorant customers fall prey to scammers and hackers.
It is advised to always complete your KYC verification on a certified CEX platform before engaging their service.

[AmoreJaz]

If having the knowledge already that CEX is more controlled that a decentralized exchange, it should be clear that it is mandatory to complete a KYC verification on a CEX before transaction in crypto related services is approved.
No need for anonymity in a CEX, so why should completing a KYC be a problem?

The issue I am bothered about is that of not having enough knowledge on a particular CEX platform before registering or completing a KYC verification. This is when ignorant customers fall prey to scammers and hackers.
It is advised to always complete your KYC verification on a certified CEX platform before engaging their service.

the answer is actually pretty simple about the question of the OP. these CEXs are requiring their customers to undergo KYC because they are licensed to implement the AML/KYC policy according to the jurisdiction where they are operating their business. doubt the motive of the site if they are not legally registered and yet, they are requiring KYC from their customers. as these crypto-exchanges are mandated by the Central Bank to implement the AML/KYC protocol, they have no choice but require their customers to submit their KYC docs to them.

[Ale88]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

It's to every exchange deciding what to do. Of course there are consequences because they can be shut down or fined in case they don't follow the rules of some specific country and yet they offer their services to those citizens. Some exchanges are more relaxed and others prefer to know exactly who is doing what on their exchange. If you don't like them just don't use them, there are plenty of options out there.

[lionheart78]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

It is needed since the exchange is complying on government regulations.  One of the implementations in a service where currency is involved is to know the customer.  Since one of the regulations wanted to prevent money laundering, they need the data of every individual in order to track down their financial activities on that platform.  They may even require a higher form of KYC where one have to submit their source of income.

Aside from that it is also one form of account security and to stop others from committing fraud.  Here is an article from Binance stating the need for KYC: THE IMPORTANCE OF KYC IN CENTRALIZED CRYPTO EXCHANGES

[TravelMug]

If having the knowledge already that CEX is more controlled that a decentralized exchange, it should be clear that it is mandatory to complete a KYC verification on a CEX before transaction in crypto related services is approved.
No need for anonymity in a CEX, so why should completing a KYC be a problem?

The issue I am bothered about is that of not having enough knowledge on a particular CEX platform before registering or completing a KYC verification. This is when ignorant customers fall prey to scammers and hackers.
It is advised to always complete your KYC verification on a certified CEX platform before engaging their service.

the answer is actually pretty simple about the question of the OP. these CEXs are requiring their customers to undergo KYC because they are licensed to implement the AML/KYC policy according to the jurisdiction where they are operating their business. doubt the motive of the site if they are not legally registered and yet, they are requiring KYC from their customers. as these crypto-exchanges are mandated by the Central Bank to implement the AML/KYC protocol, they have no choice but require their customers to submit their KYC docs to them.

Yes, they are under regulatory pressures to ask for KYC now, specially after 2017's massive bull run. So they regulation that crypto exchanges will have to follow certain rule if they wanted to operate to let's say in a certain country that has a tight regulation as far as crypto goes.

And so exchanges can't do anything. Unless we go to DEX, but there is a question of liquidity as well. So there is a trade off, used centralized exchange but there is high liquidity but you have to passed KYC, or DEX, but then it's slow and most of the time very slow process.

[Kakmakr]

The moment when an Exchange touch Fiat currencies, it has to adhere to local governments rules and regulations. These regulations were introduced to follow the money trail to trace financial crimes and to monitor and control people's finances.

They use money laundering as an excuse and also other financial crimes, but an added benefit for them is the monitoring of people's financial wealth and also to help them with the collecting of taxes. (The money that are paying their salaries) 

[MusaMohamed]

Yes, they are under regulatory pressures to ask for KYC now, specially after 2017's massive bull run. So they regulation that crypto exchanges will have to follow certain rule if they wanted to operate to let's say in a certain country that has a tight regulation as far as crypto goes.

And so exchanges can't do anything.

They can not do anything is right if government request their exchange to do KYC against customers. However, we don't know exchanges do this because of government request or just borrow it as their reason to do KYC.

Scam exchanges surely borrow this reason but non scam exchanges can do this too. I am fearful how they will store customer data and photos of KYC documents, selfies. Their bad security on data base can leak their customer documents massively.

Unless we go to DEX, but there is a question of liquidity as well. So there is a trade off, used centralized exchange but there is high liquidity but you have to passed KYC, or DEX, but then it's slow and most of the time very slow process.

Decentralized exchanges have another risk. They can be seized or shutdown by governments and this risk is bigger with decentralized exchanges that are targets of governments. They can not govern DEXs well and they go with alternative regulatory solution, seize or shutdown those DEXs.

[fruktik]

Governments are concerned about illegal activities through cryptocurrencies. And they think that most of this activity is done through cex like Binance. They have a large user base and their P2P system is widely used all over the world. SEC is targeting these exchanges by saying they are involved with these types of activity. So they do not have any other option but to force their user to do KYC. If someone is not doing anything illegal they shouldn't be afraid of it or if someone thinks they should not share their identity then dex or P2P is the best option.

I am against the verification of identity on the exchanges. This is a violation of the principles of cryptocurrencies. Why should I do this? In today's world, you should cherish your personal data, and not scatter it. Many cases are already known when they fall into the hands of scammers and very sad consequences come for people. It is better to avoid this in advance.
In addition, I do not often engage in speculative transactions in order to pass an identity check.
There are still those platforms where the principle of anonymity is in the first place, but there are fewer of them every day. Already very strong pressure comes from the financial regulator.

[OrangeII]

CEX is a centralized exchange, so they still have full control over what happens there. to minimize the risk of money laundering, and others, CEX requires KYC. Previously, KYC was not mandatory, and there are still many CEXs that can be used even without performing KYC. However, due to government pressure and legal legality, currently most CEXs require KYC. although there are quite a few who challenge this because it is not in accordance with the rules of anonymous crypto, but like it or not they have to comply with the law.

[Rabata]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

If all users were legit then KYC might not be needed. But that is not possible because there will be some miscreants ‍and for all these reasons KYC has become mandatory. In some countries the issue of KYC mentioned in their regulations. If you want to take any license form the country, it will be mandatory to do KYC. Not just Bitget the most centralized exchanges require KYC. I think all the sites which have not made KYC mandatory yet will gradually make KYC compulsory when the government comes under the restrictions. The ratio of money laundering has increased so much in today's world so if government try to control it then KYC is definitely needed.

[leonair]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

If all users were legit then KYC might not be needed. But that is not possible because there will be some miscreants ‍and for all these reasons KYC has become mandatory. In some countries the issue of KYC mentioned in their regulations. If you want to take any license form the country, it will be mandatory to do KYC. Not just Bitget the most centralized exchanges require KYC. I think all the sites which have not made KYC mandatory yet will gradually make KYC compulsory when the government comes under the restrictions. The ratio of money laundering has increased so much in today's world so if government try to control it then KYC is definitely needed.

One of the reasons for making KYC mandatory is to prevent money laundering. Every country has a law and when a CEX does business globally it can do business in those countries as per the laws of those countries and that's why KYC is being made mandatory gradually. Binance made kyc mandatory long ago. A few days ago Kucoin made kyc mandatory. Still exchanges like MEXC, Gate.io allow trade, deposit, withdraw without kyc but very less amount. In future they may also make kyc mandatory.  So it is better to complete kyc beforehand

[JunaidAzizi]

I am against the verification of identity on the exchanges. This is a violation of the principles of cryptocurrencies. Why should I do this? In today's world, you should cherish your personal data, and not scatter it. Many cases are already known when they fall into the hands of scammers and very sad consequences come for people. It is better to avoid this in advance.
In addition, I do not often engage in speculative transactions in order to pass an identity check.
There are still those platforms where the principle of anonymity is in the first place, but there are fewer of them every day. Already very strong pressure comes from the financial regulator.

Cryptocurrency was originally designed to be a more anonymous way of transacting money but in recent years there are much unlawful activity has been done and the government pressured the exchange to implement the KYC procedure. Verifying your identity with the exchange is beneficial not only for you but also for others. You will be more likely to trade or exchange funds and the person to whom you want to exchange is also identified to that exchange which will lessen the chances of stealing your money. Of course, there are many pros and cons of KYC, and verifying it or not is your personal opinion. if you are more concerned yo your security then choose the exchange where KYC is mandatory if not then non KYC exchange will be good for privacy purposes

[Outhue]

Another thing is, when it comes to airdrops the owner of that project has some way to prevent duplicates and one of them is to make their participants do KYC in order to prevent them from getting double rewards or sometimes this is their way to not distribute the rewards for others because in the first place, they tricked their participants and they just implemented these rules in the last minutes when they are about to distribute the rewards for airdrops or bounties.

Yes, in the past many new projects that introduced airdrops end up asking participants to pass KYC before they can get the free coins, but there are few projects that collected KYC information from participants and they still don't give up the free coins and tokens, makes me wonder what they did with the KYC details they took from people.

I was against KYC in the past but not anymore, there is no easier way to get rid of money laundering, and some bad criminal behaviors in the crypto space than using KYC, if there is no KYC the crypto mess would be more than what it is today.

[Despairo]

One of the reasons for making KYC mandatory is to prevent money laundering. Every country has a law and when a CEX does business globally it can do business in those countries as per the laws of those countries and that's why KYC is being made mandatory gradually. Binance made kyc mandatory long ago. A few days ago Kucoin made kyc mandatory. Still exchanges like MEXC, Gate.io allow trade, deposit, withdraw without kyc but very less amount. In future they may also make kyc mandatory.  So it is better to complete kyc beforehand

Asking KYC to prevent money laundering is pointless, what if the money launderer use stolen KYC and successfully laundering the money? what will the centralized exchange do? if they report it to SEC and it mean the SEC will accuse a wrong person since the hacker is using stolen KYC.

Nah, it's worse to complete KYC beforehand, the best is just choose a no KYC P2P or decentralized exchange.

[MusaMohamed]

Asking KYC to prevent money laundering is pointless, what if the money launderer use stolen KYC and successfully laundering the money? what will the centralized exchange do? if they report it to SEC and it mean the SEC will accuse a wrong person since the hacker is using stolen KYC.

Nah, it's worse to complete KYC beforehand, the best is just choose a no KYC P2P or decentralized exchange.

If money laundering is doing professionally, KYC is not enough because those guys have many tools to use stolen documents and submit KYC.

Governments and exchanges can use ChipMixer as their example that KYC is helpful, not useless, for them. They got the guy behind ChipMixer by KYC but it is useless and dangerous for people who don't care to do money laundering. They can not trust exchanges, governments to protect their privacy after KYC.

Why KYC is extremely dangerous – and useless

[Despairo]

If money laundering is doing professionally, KYC is not enough because those guys have many tools to use stolen documents and submit KYC.

Governments and exchanges can use ChipMixer as their example that KYC is helpful, not useless, for them. They got the guy behind ChipMixer by KYC but it is useless and dangerous for people who don't care to do money laundering. They can not trust exchanges, governments to protect their privacy after KYC.

Why KYC is extremely dangerous – and useless

Lol.

I suggest you to read the thread you took before creating post, you're contradict with the thread was talking about. You said if KYC is helpful and it can be used to fight against money laundering, while the thread was pointed about if KYC is useless and it help the criminal to stay undetected, which is same what I pointed in my post.

Conclusion: KYC is useless

The primary result of this evaluation is apparent: KYC is not only useless but ultimately encourages what it is supposed to prevent. KYC creates new areas of crime (identity trading of real users) and boosts existing areas of crime (criminals can now go undetected by abusing the identities of innocent users). It also blatantly endangers the privacy and security of all customers.

Therefore, the advertised effectiveness of digital KYC in crypto unfortunately exists only in theory. The community would be better off acknowledging the fact that not only KYC is useless, but it is also dangerous and promotes crime. Since documents for KYC are sold illegally on the web or are even faked by artificial intelligence, KYC doesn’t actually prove anything anymore.

In fact, KYC is encouraging scams and crime as well as endangering the privacy and safety of all customers through identity theft. This creates a dangerous dynamic for users who are forced to perform a KYC check: tons of personal documents are being collected by criminals and will likely go public in the future to a degree we have not seen before.

[dlightag]

The exchange want to know they customer in process of (KYC) simply means know your customer, by so doing that the exchange as well know the actual active users of the exchange in other words to limit money laundering in the exchange and also stopped multiple users in the exchange platform, like wise not participate airdrop with a multiple accounts, one user, one entry point.

[gunhell16]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

In a regulated exchange, it is normal for the platform to ask for KYC from prospective clients. Of course, they are under government regulation, which is why they can legally operate. It is also up to us whether we want to submit or not.

The exchange does not force us to do this, as long as if we want to use their platform, we must also follow the rules it has, and it may also be one of the security measures for our account using their platform. But if it's a decentralized platform exchange, we don't need to submit KYC. just as simple as that anyway.

[cafter]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

because they have to follow rules set by governments to prevent illegal activities like money laundering and fraud. KYC helps the exchange verify who you are and reduces risks. It also lets the exchange work with banks and offer better customer support.
some users may not like it, KYC is seen as necessary to keep the exchange safe and follow the laws.
not all exchanges have the same rules, so you can choose one that follow your privacy preferences.

money laundering can be done through stolen identity but it's hard to do 3rd level KYC which maybe applicable for transacting big amount.

[abel1337]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

In a regulated exchange, it is normal for the platform to ask for KYC from prospective clients. Of course, they are under government regulation, which is why they can legally operate. It is also up to us whether we want to submit or not.

The exchange does not force us to do this, as long as if we want to use their platform, we must also follow the rules it has, and it may also be one of the security measures for our account using their platform. But if it's a decentralized platform exchange, we don't need to submit KYC. just as simple as that anyway.

It's just sad that there's a heavy limit on centralized exchange customer that don't submit their KYC even if it's not mandatory. The law are the one who keeps binding exchange to collect KYC, it is a different thing if we talk about decentralized exchange. Your account is your own wallet, you don't need to prove that.

At the end of the day it is always our choice if we want the convenience with KYC or the cons of using decentralized exchange.

[bayu7adi]

The exchange want to know they customer in process of (KYC) simply means know your customer, by so doing that the exchange as well know the actual active users of the exchange in other words to limit money laundering in the exchange and also stopped multiple users in the exchange platform, like wise not participate airdrop with a multiple accounts, one user, one entry point.

For international exchanges with a large user base, the KYC (Know Your Customer) process doesn't need to be as stringent as those overseen by government-regulated exchanges, such as Binance, which enforces a withdrawal limit of 2000 USDT per day for users who haven't completed KYC. I believe that for the purposes of airdrops, very few participants receive more than 2000 USDT daily, so Binance's KYC regulations still appear quite reasonable.

The solution is to consider switching to a different exchange platform and not remain bound to one that imposes complex rules on its users.

[taufik123]

-snip-
At the end of the day it is always our choice if we want the convenience with KYC or the cons of using decentralized exchange.

Yup, it's just a choice, about privacy being taken care of or leaving it to the centralized Exchange.

Some centralized exchanges also only apply KYC to certain withdrawals and it is not binding to fully submit KYC.
Many people do KYC but they try to falsify their identity, and now it's even easier to do so because technology is getting more sophisticated.

Decentralized exchanges like DEXs would be a good choice without having to provide any ID or KYC, but be careful as many DEXs are managed by scammers.

-snip-
such as Binance, which enforces a withdrawal limit of 2000 USDT per day for users who haven't completed KYC. I believe that for the purposes of airdrops, very few participants receive more than 2000 USDT daily, so Binance's KYC regulations still appear quite reasonable.

If they are just ordinary traders, 2000 USDT is a lot of money and there will be no limit set.
Binance is the best place at the moment, although the actual KYC implementation is also quite strict

[The Cryptovator]

The exchange want to know they customer in process of (KYC) simply means know your customer, by so doing that the exchange as well know the actual active users of the exchange in other words to limit money laundering in the exchange and also stopped multiple users in the exchange platform, like wise not participate airdrop with a multiple accounts, one user, one entry point.

This isn't exactly why exchanges ask for KYC actually in my opinion. They are obliged to follow government rules. Because to operate centralized exchanges they must need to get licenses from the government. Money Laundering is just an excuse actually. We have seen exchanges even ask for KYC and proof of source funds. That's ridiculous actually why they should ask for source funds. But most probably legal authorities force them sometimes. Exchange just wants to make ready everything and provide data to legal authorities when necessary.

[armanda90]

For international exchanges with a large user base, the KYC (Know Your Customer) process doesn't need to be as stringent as those overseen by government-regulated exchanges, such as Binance, which enforces a withdrawal limit of 2000 USDT per day for users who haven't completed KYC. I believe that for the purposes of airdrops, very few participants receive more than 2000 USDT daily, so Binance's KYC regulations still appear quite reasonable.

The solution is to consider switching to a different exchange platform and not remain bound to one that imposes complex rules on its users.

I don't think that rule above still applies for Binance available withdrawing more than $2,000 in daily day for user who haven't completed KYC, current update all Binance user need to verifying their account if want trade, deposit and withdrawing fund in this CEX exchange platform. Its not problem about why have CEX exchange still required with KYC because government intervention make this situation for CEX exchange have to complete this rule and make the exchange operation still running well.

Current feature with many CEX exchange available with P2P trading make us have to complete with KYC, in Binance, Kucoin and several CEX exchange have feature with P2P and required for passing KYC to make us easily selling assets through this feature without need deposit or withdrawing trough local CEX exchange market.

[BVeyron]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

KYC is the universal way to avoid legal issues, since, firstly, any anonymous money transfers are a subject of suspicions from the officials' point of view. Secondly, there are thousands of individual collisions (person vs person), which can also end up in court, some of them include cryptocurrency and cryptotrading problems... So all the payment histories should be clearly identified in order to figure out responsibilities...

[Z_MBFM]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Yes privacy is important that's why Exchanges also store kyc documents securely. The reason for taking kyc is to keep users in a loop. and avoid incidents like money laundering. CEX has a core team and they don't hide their identity so if money laundering happens through an exchange then the government of the country from which the money is laundered will take legal action against that exchange.  And in this case if the exchanger does not take kyc from their customers then they will not be able to identify the money launderer.  And that's why now CEXs are making kyc mandatory.

[sompitonov]

-snip-
such as Binance, which enforces a withdrawal limit of 2000 USDT per day for users who haven't completed KYC. I believe that for the purposes of airdrops, very few participants receive more than 2000 USDT daily, so Binance's KYC regulations still appear quite reasonable.

If they are just ordinary traders, 2000 USDT is a lot of money and there will be no limit set.
Binance is the best place at the moment, although the actual KYC implementation is also quite strict

Some people try to cheat and create several accounts without KYC on Binance in order to split 2000 USD for withdrawal of funds without KYC from several accounts.

Already several years ago, many said that regulators in most countries of the world would increase pressure on CEX over time. As we see, this is what happens. But there will also be developers who will create platforms without KYC, it’s just a constant struggle. But over the past years, I would say that the regulation of the CEX and the tightening of the KYC tip the scales on this scale. I wouldn't like there to be complete anonymity, probably in the form that it is now in CEX I am satisfied. On the other hand, further tightening will look too harsh.

[Blitzboy]

-snip-
such as Binance, which enforces a withdrawal limit of 2000 USDT per day for users who haven't completed KYC. I believe that for the purposes of airdrops, very few participants receive more than 2000 USDT daily, so Binance's KYC regulations still appear quite reasonable.

If they are just ordinary traders, 2000 USDT is a lot of money and there will be no limit set.
Binance is the best place at the moment, although the actual KYC implementation is also quite strict

Some people try to cheat and create several accounts without KYC on Binance in order to split 2000 USD for withdrawal of funds without KYC from several accounts.

Already several years ago, many said that regulators in most countries of the world would increase pressure on CEX over time. As we see, this is what happens. But there will also be developers who will create platforms without KYC, it’s just a constant struggle. But over the past years, I would say that the regulation of the CEX and the tightening of the KYC tip the scales on this scale. I wouldn't like there to be complete anonymity, probably in the form that it is now in CEX I am satisfied. On the other hand, further tightening will look too harsh.

KYC-free networks promise anonymity but also pose security and legal dangers.

My experience has shown that while a totally decentralized exchange is intriguing, it lacks consumer protection features like existing financial services. Crypto enthusiasts should acknowledge this trade-off and agree on KYC limits. Staying static or using outmoded approaches is not an option in a fast-changing world. I support continued conversation to balance security and privacy.

[irhact]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Just because you're transacting small Bitcoin doesn't mean you're not an individual that is engaging in illegal activities like money laundering or other crimes. Judging from the exchange point of view, KYC is needed by everyone because they want to monitor everyone transaction and know what their users are using their Bitcoin for. KYC is just way of the government monitoring everyone and doesn't do any good thing for the users bit does good for the centralized exchanges.

They only make it sound like KYC are good so we don't fight them and just accept whatever they're telling us. KYC is a must for those cex exchanges under the government control but not all agree to accept their controlling behavior and that's why we have CEX with no KYC.

[sompitonov]

-snip-
such as Binance, which enforces a withdrawal limit of 2000 USDT per day for users who haven't completed KYC. I believe that for the purposes of airdrops, very few participants receive more than 2000 USDT daily, so Binance's KYC regulations still appear quite reasonable.

If they are just ordinary traders, 2000 USDT is a lot of money and there will be no limit set.
Binance is the best place at the moment, although the actual KYC implementation is also quite strict

Some people try to cheat and create several accounts without KYC on Binance in order to split 2000 USD for withdrawal of funds without KYC from several accounts.

Already several years ago, many said that regulators in most countries of the world would increase pressure on CEX over time. As we see, this is what happens. But there will also be developers who will create platforms without KYC, it’s just a constant struggle. But over the past years, I would say that the regulation of the CEX and the tightening of the KYC tip the scales on this scale. I wouldn't like there to be complete anonymity, probably in the form that it is now in CEX I am satisfied. On the other hand, further tightening will look too harsh.

KYC-free networks promise anonymity but also pose security and legal dangers.

My experience has shown that while a totally decentralized exchange is intriguing, it lacks consumer protection features like existing financial services. Crypto enthusiasts should acknowledge this trade-off and agree on KYC limits. Staying static or using outmoded approaches is not an option in a fast-changing world. I support continued conversation to balance security and privacy.

To a large extent I agree with you. There is a high probability of circulation of dirty money on KYC-free networks. Of course, no one wants to get involved with them. You can also lose money there and have nothing to prove. Therefore, the average user in the majority chooses CEX.

The balance between security and privacy is the best it can be for me at the moment. In any case, development in the field of crypto is proceeding at a rapid pace and perhaps soon we may see something that we are not even aware of.

[ajiz138]

The exchange want to know they customer in process of (KYC) simply means know your customer, by so doing that the exchange as well know the actual active users of the exchange in other words to limit money laundering in the exchange and also stopped multiple users in the exchange platform, like wise not participate airdrop with a multiple accounts, one user, one entry point.

This isn't exactly why exchanges ask for KYC actually in my opinion. They are obliged to follow government rules. Because to operate centralized exchanges they must need to get licenses from the government. Money Laundering is just an excuse actually. We have seen exchanges even ask for KYC and proof of source funds. That's ridiculous actually why they should ask for source funds. But most probably legal authorities force them sometimes. Exchange just wants to make ready everything and provide data to legal authorities when necessary.

Since this is a government-registered platform company, they have to do this requirement for security and regulation, so all those under the government's auspices will obviously be asked for KYC for the sake of avoiding money laundering or other illegal activities.

Customers do not protest this if they do not do it, all features will be locked if they want to continue then do KYC, such are the demands that exchanges face now.

On the grounds that they want to know the legitimate source of funds, (but I don't think they care about that) it is worth saying that now most exchanges KYC is a necessary thing.

[molsewid]

The exchange want to know they customer in process of (KYC) simply means know your customer, by so doing that the exchange as well know the actual active users of the exchange in other words to limit money laundering in the exchange and also stopped multiple users in the exchange platform, like wise not participate airdrop with a multiple accounts, one user, one entry point.

This isn't exactly why exchanges ask for KYC actually in my opinion. They are obliged to follow government rules. Because to operate centralized exchanges they must need to get licenses from the government. Money Laundering is just an excuse actually. We have seen exchanges even ask for KYC and proof of source funds. That's ridiculous actually why they should ask for source funds. But most probably legal authorities force them sometimes. Exchange just wants to make ready everything and provide data to legal authorities when necessary.

Since this is a government-registered platform company, they have to do this requirement for security and regulation, so all those under the government's auspices will obviously be asked for KYC for the sake of avoiding money laundering or other illegal activities.

Customers do not protest this if they do not do it, all features will be locked if they want to continue then do KYC, such are the demands that exchanges face now.

On the grounds that they want to know the legitimate source of funds, (but I don't think they care about that) it is worth saying that now most exchanges KYC is a necessary thing.

Indeed, that is the reason why CEX has KYC. Also, some of them can have a p2p wherein you can convert your crypto to your local currency via bank or any digital wallet that is also registered to the government. Actually, I am more into CEX than DEX, for me it is more safer and also some projects cannot list their token in cex without any docs and enough money to pay especially to tier 1 exchanges.

[panganib999]

KYC is important in centralized exchanges as they use it for profiling. They require customer information for some sort of data-correlation so they can use it for 2-factor authentication or something, and in some cases they require it to make sure that customers for withdrawals to make sure that they don't money launder. There are other more viable options that wouldn't really jeopardize the customer's identity on the line like Static IP addresses fetching to make sure that they aren't creating multiple accounts, but since these are easier to implement, and since it's a little counterintuitive to not ask for customer's information when you're already working with a centralized exchange, they might as well.

[nakamura12]

Indeed, that is the reason why CEX has KYC. Also, some of them can have a p2p wherein you can convert your crypto to your local currency via bank or any digital wallet that is also registered to the government. Actually, I am more into CEX than DEX, for me it is more safer and also some projects cannot list their token in cex without any docs and enough money to pay especially to tier 1 exchanges.

The reason is obvious as to why they require cex to ask their customers KYC which is to avoid illegal activities like money laundering. If they aren't under the government then they wouldn't have to ask KYC from their customers just like dex. That's why many people are more into dex than cex just like me which I prefer dex than cex. There are risk when you use cex like your info might get leaked or sold by the platform to other people and that will result in identity theft which you wouldn't want.

[Ojima-ojo]

KYC is important in centralized exchanges as they use it for profiling. They require customer information for some sort of data-correlation so they can use it for 2-factor authentication or something, and in some cases they require it to make sure that customers for withdrawals to make sure that they don't money launder. Other more viable options wouldn't really jeopardize the customer's identity on the line like Static IP addresses fetching to make sure that they aren't creating multiple accounts, but since these are easier to implement, and since it's a little counterintuitive to not ask for customer's information when you're already working with a centralized exchange, they might as well.

There is no cex without KYC and the reason for licensing,  so to fulfil the regulatory mandate, the exchange must have to demand for customers' data and other vital information, but what has baffled me for some time now is that, despite all the KYC that have come along centralized exchanges still failed to protect the customers.


Take the FTX issue for example, despite being a regulatory compliance exchange with customer mandatory KYC, its bankruptcy crisis still fell on the customers who lost a huge sum of money running into millions or billions of dollars, so if the regulator had an interest in the customers at heart while issuing a license to cex, there should be some form of insurance of the customers and collecting KYC should be in that regard of settling potential crises such as this, to protect the exchange users from losing funds.

[n00ber]

Indeed, that is the reason why CEX has KYC. Also, some of them can have a p2p wherein you can convert your crypto to your local currency via bank or any digital wallet that is also registered to the government. Actually, I am more into CEX than DEX, for me it is more safer and also some projects cannot list their token in cex without any docs and enough money to pay especially to tier 1 exchanges.

The reason is obvious as to why they require cex to ask their customers KYC which is to avoid illegal activities like money laundering. If they aren't under the government then they wouldn't have to ask KYC from their customers just like dex. That's why many people are more into dex than cex just like me which I prefer dex than cex. There are risk when you use cex like your info might get leaked or sold by the platform to other people and that will result in identity theft which you wouldn't want.

Besides not having to provide identity, I don't think DEX has anything superior to CEX. DEX liquidity is still very low so we will encounter many difficulties. I tried p2p trading on bisq and it took more than 1 day to contact the seller which is quite annoying if we need the money urgently. Moreover, if you are a day trader, DEX is not a wise choice as they do not offer too many trading pairs and features that cannot be compared with CEX. DEX is great for privacy, the rest are still not comparable to CEX.

[Ale88]

Besides not having to provide identity, I don't think DEX has anything superior to CEX. DEX liquidity is still very low so we will encounter many difficulties. I tried p2p trading on bisq and it took more than 1 day to contact the seller which is quite annoying if we need the money urgently. Moreover, if you are a day trader, DEX is not a wise choice as they do not offer too many trading pairs and features that cannot be compared with CEX. DEX is great for privacy, the rest are still not comparable to CEX.

DEXs are the future, even CZ said that in the next years, when cryptos will become more mainstream, people will have more knowledge about their use and DEXs will increase a lot in popularity. Right now too many users don't feel comfortable using them, and I understand it, it's like internet at the very beginning, just few people would use it, all the other would still rely on newspapers, television, radio, etc.

[Iranus]

Besides not having to provide identity, I don't think DEX has anything superior to CEX. DEX liquidity is still very low so we will encounter many difficulties. I tried p2p trading on bisq and it took more than 1 day to contact the seller which is quite annoying if we need the money urgently. Moreover, if you are a day trader, DEX is not a wise choice as they do not offer too many trading pairs and features that cannot be compared with CEX. DEX is great for privacy, the rest are still not comparable to CEX.

DEXs are the future, even CZ said that in the next years, when cryptos will become more mainstream, people will have more knowledge about their use and DEXs will increase a lot in popularity. Right now too many users don't feel comfortable using them, and I understand it, it's like internet at the very beginning, just few people would use it, all the other would still rely on newspapers, television, radio, etc.

I also believe that DEX will soon have improvements and developments in the future because the demand for them is increasing. But my question is when will cryptocurrencies become more widely available and governments will introduce more regulations. Can DEXs exist if they do not comply with the law? Just as mixers are constantly targeted by the government for not complying with government regulations. Or highly anonymous currencies like Dash and XMR...have all become government targets, and they also want to eliminate them. Honestly, it is difficult to predict the future of DEXs.

[legendbtc]

Besides not having to provide identity, I don't think DEX has anything superior to CEX. DEX liquidity is still very low so we will encounter many difficulties. I tried p2p trading on bisq and it took more than 1 day to contact the seller which is quite annoying if we need the money urgently. Moreover, if you are a day trader, DEX is not a wise choice as they do not offer too many trading pairs and features that cannot be compared with CEX. DEX is great for privacy, the rest are still not comparable to CEX.

DEXs are the future, even CZ said that in the next years, when cryptos will become more mainstream, people will have more knowledge about their use and DEXs will increase a lot in popularity. Right now too many users don't feel comfortable using them, and I understand it, it's like internet at the very beginning, just few people would use it, all the other would still rely on newspapers, television, radio, etc.

DEX is not new, it has been around for a long time but for some reason until now it is still not more perfect and cannot compete on equal terms with CEX. DEX still seems to be slower and weaker than CEX in the battle for market share. I have also heard many people believe that DEX will be the future of exchanges, but so far CEX is still the place that people trust more even when there are many incidents and bankruptcies.

I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.

[adzino]

KYC is a must in Centralized Exchanges primarily due to regulatory laws. Governments want to prevent money laundering and other illegal activities (and also track and see what people are doing with their money). So, for a CEX to operate legally in many countries, they're required to ask for KYC from their users. It's not just about legal laws, it's also for the safety of the exchange and its users. Without KYC, the exchange might be charged and convicted of helping in money laundering. And if people do P2P trades, there is a risk that the user might be receiving money that has been obtained from illegal source. The user might accidently become a part of a larger crime.

[tech30338]

around 2016 KYC is not mandatory, you can signup on exchange without those only email confirmation, but as time goes, once the government became aware of the money being transfer via crypto currency to launder, they require the exchange for the mandatory KYC so that if they need anything they would ask the exchange, today there is no way you can pull out the money without them being known who you are, in you process this through exchange,
the bad thing also for those who have money in cex is if they don't KYC their account will be suspended or worse be ban and lost the money.

[NNRR]

KYC is not mandatory in all CEX exchanges, but in big exchanges, no one can withdraw any funds without KYC, maybe the main purpose of the exchanges is Money Laundering, Scam, or Scam, so the exchanges have made KYC mandatory. It is my opinion that every major CEX exchange should make KYC mandatory It may be beneficial that no scammer can scam anyone

[Strongkored]

DEX is not new, it has been around for a long time but for some reason until now it is still not more perfect and cannot compete on equal terms with CEX. DEX still seems to be slower and weaker than CEX in the battle for market share. I have also heard many people believe that DEX will be the future of exchanges, but so far CEX is still the place that people trust more even when there are many incidents and bankruptcies.

I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.

It was only about time before DEX finally started to become a mainstream choice, Why? because nowadays more people don't realize how important it is to keep our personal data confidential, and also using DEX will keep our assets safe from freezing from exchanges like CEX often do, and when users ask about the cause they will never get an answer that is convincing.

It's quite strange that the many hacking dramas from CEX, bankruptcy, scams and so on haven't been able to make people massively abandon CEX and start using DEX because people will prefer the convenience they get in CEX while DEX looks more complicated like Bisq you have to download it to use it, but if there was a simple DEX I'm sure it would start to change people's perspective and start switching to something safer.

[posi]

KYC is a must in Centralized Exchanges primarily due to regulatory laws. Governments want to prevent money laundering and other illegal activities (and also track and see what people are doing with their money). So, for a CEX to operate legally in many countries, they're required to ask for KYC from their users. It's not just about legal laws, it's also for the safety of the exchange and its users. Without KYC, the exchange might be charged and convicted of helping in money laundering. And if people do P2P trades, there is a risk that the user might be receiving money that has been obtained from illegal source. The user might accidently become a part of a larger crime.

In general, KYC is not necessarily bad because by doing so we will be protected by law. Many people do not like revealing their identities so they feel uncomfortable with CEX when it requires KYC, but those who do not like KYC and think that they do not need legal protection, but when attacked or stolen, the first person they looking for is still the police and the law, LOL.

Personally, I don't hate CEX and I still use them because they offer many services that are not available on DEX. I also believe that CEX is here to stay and remains the top choice for investors over DEX. Whether we like it or not, that's what's happening.

[Blitzboy]

DEX is not new, it has been around for a long time but for some reason until now it is still not more perfect and cannot compete on equal terms with CEX. DEX still seems to be slower and weaker than CEX in the battle for market share. I have also heard many people believe that DEX will be the future of exchanges, but so far CEX is still the place that people trust more even when there are many incidents and bankruptcies.

I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.

It was only about time before DEX finally started to become a mainstream choice, Why? because nowadays more people don't realize how important it is to keep our personal data confidential, and also using DEX will keep our assets safe from freezing from exchanges like CEX often do, and when users ask about the cause they will never get an answer that is convincing.

It's quite strange that the many hacking dramas from CEX, bankruptcy, scams and so on haven't been able to make people massively abandon CEX and start using DEX because people will prefer the convenience they get in CEX while DEX looks more complicated like Bisq you have to download it to use it, but if there was a simple DEX I'm sure it would start to change people's perspective and start switching to something safer.

Concerns about data privacy and security are reasonable, especially with cyber dangers rising. Centralized exchanges (CEX) sometimes mishandle users' assets and data, and the lack of transparency when things go wrong just fuels the suspicion.

However, CEX is convenient, especially for newbies. Many people got into crypto because of their user interfaces, speed, and services. The simplicity of CEX has won over.

Although superior in data confidentiality and asset security, DEX has a learning curve. Downloading platforms like Bisq can be scary. However, DEX platforms may be able to simplify their interfaces as technology advances, combining DEX's security with CEX's user-friendliness. If that happens, it might transform the crypto industry by making it safer and more convenient.

[Peanutswar]

Not all platform requiring a KYC some of them just the basic email and phone number and we called this sometimes as level 1 only it's use for the account recovery and other feature, but of course they make a requirements and agreement if the account have a KYC they can experience difference in the local ones. But if you are just a small trader you don't pursue too much in KYC. Just likely a withdrawal amount only.

[fuguebtc]

Not all platform requiring a KYC some of them just the basic email and phone number and we called this sometimes as level 1 only it's use for the account recovery and other feature, but of course they make a requirements and agreement if the account have a KYC they can experience difference in the local ones. But if you are just a small trader you don't pursue too much in KYC. Just likely a withdrawal amount only.

There are many limitations if you use a centralized exchange without KYC. For example, you cannot deposit and withdraw large amounts, you cannot use their P2P feature to convert to fiat currency, or your account may suddenly freeze and you will have to provide documentation ID card to solve the problem. If you really don't like KYC, it's best not to use centralized exchanges in the first place to avoid unnecessary trouble. You should use a decentralized exchange from the beginning.

But as far as I know, most centralized exchanges have started requiring KYC to be able to use even level 1.

[qwertyup23]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

I do think that there are CEX that do not require any KYC but be wary of these exchanges as you should not keep your BTCs longer on them.

Most of the exchanges have KYC in order for the platform to provide security for both of the parties. This guarantees the exchange that they have your personal information and no shenanigans can be executed. In effect, exchanges require KYC for both of your security.

While this may be the case, I do recommend that you register in an exchange that do require KYC.

[Wakate]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Honestly I almost thought bitget was a KYC free exchange until I discovered that you will need to do KYC before you can use the exchange to do anything you want even trading. This is not supposed to be so because I know there are some cex exchanges that don't make KYC compulsory at all except you want to increase the amount you can able to trader and receive funds. You can search the internet for other exchanges that don't make KYC compulsory which you can use in your region without any restrictions or need to use VPN.

[Aanuoluwatofunmi]

KYC is not mandatory in all CEX exchanges, but in big exchanges, no one can withdraw any funds without KYC, maybe the main purpose of the exchanges is Money Laundering, Scam, or Scam, so the exchanges have made KYC mandatory. It is my opinion that every major CEX exchange should make KYC mandatory It may be beneficial that no scammer can scam anyone

Some exchanges may not only require for kyc for a start but along the way they may choose to make such request later and place demands on it because they are unpredictable, why then can't we go ahead to make use of a non custodial wallet instead of using a custodial wallet from exchanges, we can also consider the risk in them as why not to use them together with the privacy abuse in using a centralized exchange.

[mvdheuvel1983]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

For most centralized exchanges, KYC is mandatory for several reasons ranging from keeping the customer from engaging in fraudulent activities with their accounts to ensuring customers credibility. However my qualms with these Centralized exchanges is that they are honest with the customers. Being that our personal information which we submitted to them are not well secured. They may even go as far as selling off these data to a third party for profit.  Our KYC documents is not as private as they have us think it is. And fruads are still being committed.

[Texac]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Honestly I almost thought bitget was a KYC free exchange until I discovered that you will need to do KYC before you can use the exchange to do anything you want even trading. This is not supposed to be so because I know there are some cex exchanges that don't make KYC compulsory at all except you want to increase the amount you can able to trader and receive funds. You can search the internet for other exchanges that don't make KYC compulsory which you can use in your region without any restrictions or need to use VPN.

There are not too many centralized exchanges that do not require KYC, as far as I know only Kucoin does not require KYC if you only trade small amounts.  for larger amounts, you cannot use them without KYC.  centralized exchanges all comply with the law to operate, so failure to KYC is very unlikely, it is a government regulation and no longer under their jurisdiction.

DEXs are an option for those who do not want to expose their privacy, but they are not as liquid nor as full-featured as CEXs.  so up to now, DEXs are not the choice of many people.

[GreatArkansas]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

I do think that there are CEX that do not require any KYC but be wary of these exchanges as you should not keep your BTCs longer on them.

Most of the exchanges have KYC in order for the platform to provide security for both of the parties. This guarantees the exchange that they have your personal information and no shenanigans can be executed. In effect, exchanges require KYC for both of your security.

While this may be the case, I do recommend that you register in an exchange that do require KYC.

Yep, there are still some of them I believe but these exchanges are fishy, because these days, most popular or reputable centralized exchanges already need to undergo KYC, and it's rare to see some that don't have it. Because for sure most of these exchanges are embracing this centralized thing, just to avoid such scammers or criminal activities.

[Minecache]

KYC is important in centralized exchanges as they use it for profiling. They require customer information for some sort of data-correlation so they can use it for 2-factor authentication or something, and in some cases they require it to make sure that customers for withdrawals to make sure that they don't money launder. Other more viable options wouldn't really jeopardize the customer's identity on the line like Static IP addresses fetching to make sure that they aren't creating multiple accounts, but since these are easier to implement, and since it's a little counterintuitive to not ask for customer's information when you're already working with a centralized exchange, they might as well.

There is no cex without KYC and the reason for licensing,  so to fulfil the regulatory mandate, the exchange must have to demand for customers' data and other vital information, but what has baffled me for some time now is that, despite all the KYC that have come along centralized exchanges still failed to protect the customers.


Take the FTX issue for example, despite being a regulatory compliance exchange with customer mandatory KYC, its bankruptcy crisis still fell on the customers who lost a huge sum of money running into millions or billions of dollars, so if the regulator had an interest in the customers at heart while issuing a license to cex, there should be some form of insurance of the customers and collecting KYC should be in that regard of settling potential crises such as this, to protect the exchange users from losing funds.

I don't think the KYC requirement is for customer protection. To put it bluntly, centralized exchanges are protecting themselves because without complying with government regulations, they will not be able to maintain their business, and KYC is one of the regulations from the government. Furthermore, requiring users to KYC is because they are afraid of fraud, money laundering...this will harm them, not customers.
Everything they do is for their own benefit, so don't be surprised when they go bankrupt, they don't have any responsibility to us.

[legendbtc]

DEX is not new, it has been around for a long time but for some reason until now it is still not more perfect and cannot compete on equal terms with CEX. DEX still seems to be slower and weaker than CEX in the battle for market share. I have also heard many people believe that DEX will be the future of exchanges, but so far CEX is still the place that people trust more even when there are many incidents and bankruptcies.

I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.

It was only about time before DEX finally started to become a mainstream choice, Why? because nowadays more people don't realize how important it is to keep our personal data confidential, and also using DEX will keep our assets safe from freezing from exchanges like CEX often do, and when users ask about the cause they will never get an answer that is convincing.

It's quite strange that the many hacking dramas from CEX, bankruptcy, scams and so on haven't been able to make people massively abandon CEX and start using DEX because people will prefer the convenience they get in CEX while DEX looks more complicated like Bisq you have to download it to use it, but if there was a simple DEX I'm sure it would start to change people's perspective and start switching to something safer.

When talking about our personal data or identity, I believe no one can hide it because we are all using bank accounts, employee cards and health insurance cards, even social networks and all the centralized services we use every day. Our identities are no longer a secret, why do we go easy on those things but when it comes to CEX we feel uncomfortable. That's the question I've been wondering for a long time.

Furthermore, CEX is a place to exchange, buy, sell, and convert, not a place to store assets. Even banks cannot give us safety, there is no reason to trust CEX. It's our fault, when we lose money we shouldn't blame CEX.

[Blitzboy]

DEX is not new, it has been around for a long time but for some reason until now it is still not more perfect and cannot compete on equal terms with CEX. DEX still seems to be slower and weaker than CEX in the battle for market share. I have also heard many people believe that DEX will be the future of exchanges, but so far CEX is still the place that people trust more even when there are many incidents and bankruptcies.

I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.

It was only about time before DEX finally started to become a mainstream choice, Why? because nowadays more people don't realize how important it is to keep our personal data confidential, and also using DEX will keep our assets safe from freezing from exchanges like CEX often do, and when users ask about the cause they will never get an answer that is convincing.

It's quite strange that the many hacking dramas from CEX, bankruptcy, scams and so on haven't been able to make people massively abandon CEX and start using DEX because people will prefer the convenience they get in CEX while DEX looks more complicated like Bisq you have to download it to use it, but if there was a simple DEX I'm sure it would start to change people's perspective and start switching to something safer.

When talking about our personal data or identity, I believe no one can hide it because we are all using bank accounts, employee cards and health insurance cards, even social networks and all the centralized services we use every day. Our identities are no longer a secret, why do we go easy on those things but when it comes to CEX we feel uncomfortable. That's the question I've been wondering for a long time.

Furthermore, CEX is a place to exchange, buy, sell, and convert, not a place to store assets. Even banks cannot give us safety, there is no reason to trust CEX. It's our fault, when we lose money we shouldn't blame CEX.

Our personal data is both "out there" and "with us". It's interesting that we disclose our information to banks, companies, and social networking sites but not CEXs. It's unclear if cryptocurrencies aren't clear or if people are just cautious of new things. Remember to use CEXs carefully, just like we do when exchanging personal information on other platforms. CEXs aren't the evil guys when things go wrong. The painful lesson we all must learn is that we are responsible for our choices and their consequences. We can make sensible decisions by understanding blockchain technology and storing our crypto assets carefully.

[bayu7adi]

When talking about our personal data or identity, I believe no one can hide it because we are all using bank accounts, employee cards and health insurance cards, even social networks and all the centralized services we use every day. Our identities are no longer a secret, why do we go easy on those things but when it comes to CEX we feel uncomfortable. That's the question I've been wondering for a long time.

Furthermore, CEX is a place to exchange, buy, sell, and convert, not a place to store assets. Even banks cannot give us safety, there is no reason to trust CEX. It's our fault, when we lose money we shouldn't blame CEX.

I concur, as for certain renowned international CEXs, it can sometimes be challenging to report adverse incidents. However, if we carefully select our preferred CEX, such as opting for a local one, there may still be a possibility to report any detrimental occurrences to the relevant authorities.

What I've been doing all along is exclusively utilizing CEXs with impeccable reputations and the highest transaction volumes. Additionally, I turn to local CEXs for exchanging with FIAT currencies. I don't find it burdensome to undergo KYC procedures on both of these platforms since I require them for conducting transactions there.

As for some other centralized exchanges, I skip the KYC verification process and adhere to the transaction limits they've established.

[Synchronice]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

If business didn't have regulations, they would definitely not ask you for KYC documents, wouldn't really care about the source of your money or probably would seize your account anytime. You use cryptocurrency for your privacy but once you make yourself in touch with centralized system, you are vanishing that privacy. Centralized systems 99% times don't care about your privacy because that's your problem, not theirs and to be honest, majority of people don't care about privacy too much if the service they get fulfills their needs.

[Z-tight]

It's interesting that we disclose our information to banks, companies, and social networking sites but not CEXs.

I hear a lot of people say this, but it is because centralized exchanges are provably very bad at storing their customers' information safely, they are regularly victims of hacks and data breaches, so the chances are high that the information you give to a centralized exchange could be sold in the black market someday.

Another reason i consider important is that i use a bank and i know they are centralized and must request for my personal information, but my reason of using BTC is because i want to hide some of my financial activities and use a currency that is censorship resistant, if i use centralized exchanges it defeats what i want to achieve and it is the same as me using my centralized bank for 100% of my financial activities.

[GiftedMAN]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

If business didn't have regulations, they would definitely not ask you for KYC documents, wouldn't really care about the source of your money or probably would seize your account anytime. You use cryptocurrency for your privacy but once you make yourself in touch with centralized system, you are vanishing that privacy. Centralized systems 99% times don't care about your privacy because that's your problem, not theirs and to be honest, majority of people don't care about privacy too much if the service they get fulfills their needs.

Not all cex exchanges that do ask for KYC and these is mostly need to regulated exchanges to help curb money laundry and other illegal practice by scammers and hackers. The KYC helps to know who is who and reduce the art of scam attempt by individual customers. Many people that have been in the market for long now don't like a cex exchange that ask for KYC because they know what it means and the effect of giving there credentials to exchange and the data is misused or get to the hands of hackers. People still prefer to use p2p to sell there tokens that going to give there information to illegal exchanges.

[alastantiger]

Exchanges require KYC in order to stop fraud like stealing other people's bitcoins and cashing them out, money laundering, scams, hacks, and so on. Most countries require an exchange to have specific KYC measures because they are legally allowed to operate there.

Although I will say that requiring KYC for very small transactions is a bit of a stretch, as it's not really possible to do much with it in the first place.

Alot of people use CEX . Without KYC Cryptocurrencies particularly Bitcoin would be labeled a scam, a dubious scheme because the morally bankrupt people in the society who find the easiest avenue to rip people out of their hard earned money would have scammed alot of people through one fraudulent scheme or another using the CEX platform and there would be no means to identify or catch them. KYC discourages this

[legendbtc]

It's interesting that we disclose our information to banks, companies, and social networking sites but not CEXs.

I hear a lot of people say this, but it is because centralized exchanges are provably very bad at storing their customers' information safely, they are regularly victims of hacks and data breaches, so the chances are high that the information you give to a centralized exchange could be sold in the black market someday.

Another reason i consider important is that i use a bank and i know they are centralized and must request for my personal information, but my reason of using BTC is because i want to hide some of my financial activities and use a currency that is censorship resistant, if i use centralized exchanges it defeats what i want to achieve and it is the same as me using my centralized bank for 100% of my financial activities.

If it comes to disclosing or selling customer information, you should think about social networks and credit lending institutions. They not only fully exploit your personal information, but also sell your information to partners and third parties for profit. Do you think they create a social network and provide it so you can use it for free without any requirements? If it were you, you would be kind enough to spend billions of dollars to create a social network for everyone to use for free?

Yes, if you use bitcoin to hide your assets from everyone, I completely agree and like I said, exchanges are not the place for us to store bitcoin. It's just a place to exchange, buy and sell...No one said we should use exchanges to store our bitcoins.

[Hanadawa]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

I think KYC is an important thing. Cryptocurrencies have many challenges related to government regulation. Therefore, having KYC will make it easier for the CEX exchange to carry out transactions and trades. Your idea that KYC is only for those who make a lot of transactions is a good idea.

However, it will be quite difficult to implement this because there could be loopholes that will be exploited by those who don't want KYC. Or it can also be used to create scam because without KYC, people can create whatever accounts they want. And this could be a problem for CEX in the future.

[DanWalker]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

If business didn't have regulations, they would definitely not ask you for KYC documents, wouldn't really care about the source of your money or probably would seize your account anytime. You use cryptocurrency for your privacy but once you make yourself in touch with centralized system, you are vanishing that privacy. Centralized systems 99% times don't care about your privacy because that's your problem, not theirs and to be honest, majority of people don't care about privacy too much if the service they get fulfills their needs.

Not all cex exchanges that do ask for KYC and these is mostly need to regulated exchanges to help curb money laundry and other illegal practice by scammers and hackers. The KYC helps to know who is who and reduce the art of scam attempt by individual customers. Many people that have been in the market for long now don't like a cex exchange that ask for KYC because they know what it means and the effect of giving there credentials to exchange and the data is misused or get to the hands of hackers. People still prefer to use p2p to sell there tokens that going to give there information to illegal exchanges.

Both CEX and DEX have pros and cons. While KYC helps CEX control and manage illegal activities, but KYC will also reveal user information and many people do not like this. Meanwhile, DEX does not require KYC and that is also a loophole that criminals will take advantage of to commit illegal acts. So it is difficult to say whether CEX is better or DEX is better. DEX users will criticize CEX and vice versa, just like cryptocurrency investors always criticize other investments like real estate or stocks. In my opinion, depending on each person's taste, there is a suitable choice, I will not say which one is better than the other.

[Cookdata]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

I think KYC is an important thing. Cryptocurrencies have many challenges related to government regulation. Therefore, having KYC will make it easier for the CEX exchange to carry out transactions and trades. Your idea that KYC is only for those who make a lot of transactions is a good idea.

However, it will be quite difficult to implement this because there could be loopholes that will be exploited by those who don't want KYC. Or it can also be used to create scam because without KYC, people can create whatever accounts they want. And this could be a problem for CEX in the future.

Can you name one thing KYC has done for crypto since the government started the implementation? How many times has cex defaulted and announced being bankrupt due to hacks and stolen funds, even yesterday there was hacked that took place in one of the crypto exchanges called cryptoEX and it was reported that about $27M worth of ETH was stolen, who is the government supposed to KYC? The exchanges that are losing custody of user's funds to hack or the users that are just there to exchange? HUH!

KYC has been useful for the exchange to identify user's identity but I don't think it has been really useful the way it was intended, the centralized exchanges are the ones the government should be wary of, they have done more damage in crypto than even the said individuals. Look at how messy FTX has become till today, they are fighting each other within the teams, the sponsors, the politicians that accepted free donations, the lawyers and the venture capitalist and you think KYC is the problem, common bro.

[Smack That Ace]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

I think KYC is an important thing. Cryptocurrencies have many challenges related to government regulation. Therefore, having KYC will make it easier for the CEX exchange to carry out transactions and trades. Your idea that KYC is only for those who make a lot of transactions is a good idea.

However, it will be quite difficult to implement this because there could be loopholes that will be exploited by those who don't want KYC. Or it can also be used to create scam because without KYC, people can create whatever accounts they want. And this could be a problem for CEX in the future.

Can you name one thing KYC has done for crypto since the government started the implementation? How many times has cex defaulted and announced being bankrupt due to hacks and stolen funds, even yesterday there was hacked that took place in one of the crypto exchanges called cryptoEX and it was reported that about $27M worth of ETH was stolen, who is the government supposed to KYC? The exchanges that are losing custody of user's funds to hack or the users that are just there to exchange? HUH!

KYC has been useful for the exchange to identify user's identity but I don't think it has been really useful the way it was intended, the centralized exchanges are the ones the government should be wary of, they have done more damage in crypto than even the said individuals. Look at how messy FTX has become till today, they are fighting each other within the teams, the sponsors, the politicians that accepted free donations, the lawyers and the venture capitalist and you think KYC is the problem, common bro.

I think KYC helps exchanges to control and track their users to avoid cases of scam or money laundering...The exchange collapse issue has nothing to do with KYC. The collapse of exchanges has legal implications and the government must be held responsible. But another thing is that we don't want to be controlled by the government, we want to be free, but when we are scammed, we ask the government to solve it. This is one of the loopholes in the crypot market and scammers are fully exploiting it.

[mv1986]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

I think KYC is an important thing. Cryptocurrencies have many challenges related to government regulation. Therefore, having KYC will make it easier for the CEX exchange to carry out transactions and trades. Your idea that KYC is only for those who make a lot of transactions is a good idea.

However, it will be quite difficult to implement this because there could be loopholes that will be exploited by those who don't want KYC. Or it can also be used to create scam because without KYC, people can create whatever accounts they want. And this could be a problem for CEX in the future.

Can you name one thing KYC has done for crypto since the government started the implementation? How many times has cex defaulted and announced being bankrupt due to hacks and stolen funds, even yesterday there was hacked that took place in one of the crypto exchanges called cryptoEX and it was reported that about $27M worth of ETH was stolen, who is the government supposed to KYC? The exchanges that are losing custody of user's funds to hack or the users that are just there to exchange? HUH!

KYC has been useful for the exchange to identify user's identity but I don't think it has been really useful the way it was intended, the centralized exchanges are the ones the government should be wary of, they have done more damage in crypto than even the said individuals. Look at how messy FTX has become till today, they are fighting each other within the teams, the sponsors, the politicians that accepted free donations, the lawyers and the venture capitalist and you think KYC is the problem, common bro.

I guess that centralized exchanges are just not as good as banks are at disguising the activities that are going on behind the scenes. FTX is a great example for that. Financing political campaigns on that level is insane. The dude with his curly hair and the jogging pants makes contributions in excess of $100 million to politicians. Then it turns out he ran some of the accounting for a multi-billion dollars company with spreadsheets and I think it was a free accounting software or something.

Banks are running their own scams, but I think they know better how to do it then a young dude like SBF.

KYC at most exchanges is definitely a scam. I think when you take a publicly listed company like Coinbase, there is at least some oversight from regulatory bodies to make sure that they have a certain level of data security in place. But I have been asked by exchanges for my data that couldn't even spell the KYC shortage right. One time a customer support agent wrote it as words to me like "K Why see" or something like that. It was absurd. It's a few years ago and I wanted to trade one specific coin that at the time was only listed there. Better not trade the coin in the first place I guess. At some point they closed my account and I lost a few hundred dollars.

[Maslate]

I think KYC helps exchanges to control and track their users to avoid cases of scam or money laundering...The exchange collapse issue has nothing to do with KYC. The collapse of exchanges has legal implications and the government must be held responsible. But another thing is that we don't want to be controlled by the government, we want to be free, but when we are scammed, we ask the government to solve it. This is one of the loopholes in the crypot market and scammers are fully exploiting it.

The only way users can scam an exchange is if they can hack it, aside from that I don't see any possibility. KYC is just a simple verification process where an exchange would like to know their users and it's mandatory to all legal exchange as they are regulated by a certain agency of the government, so there's no need to question that because exchanges nowadays are like banks.

If we are expecting full anonymity, then there's always this decentralized exchange, but the problem is they don't have the volume like CEX, and that only tells us that more people trust centralized exchange over decentralized exchange which we can conclude that most of them do comply with the KYC.

[Blitzboy]

I think KYC helps exchanges to control and track their users to avoid cases of scam or money laundering...The exchange collapse issue has nothing to do with KYC. The collapse of exchanges has legal implications and the government must be held responsible. But another thing is that we don't want to be controlled by the government, we want to be free, but when we are scammed, we ask the government to solve it. This is one of the loopholes in the crypot market and scammers are fully exploiting it.

The only way users can scam an exchange is if they can hack it, aside from that I don't see any possibility. KYC is just a simple verification process where an exchange would like to know their users and it's mandatory to all legal exchange as they are regulated by a certain agency of the government, so there's no need to question that because exchanges nowadays are like banks.

If we are expecting full anonymity, then there's always this decentralized exchange, but the problem is they don't have the volume like CEX, and that only tells us that more people trust centralized exchange over decentralized exchange which we can conclude that most of them do comply with the KYC.

KYC is essential to this progress. It reassures markets and regulators that fraud will decrease. KYC may deter bad behaviour, but no system is immune to hacking.

DEX may not have as much traffic as centralised exchanges, but they offer something special. You can encounter people who prioritise independence and decentralisation over speed and money there. CEX have the most users, however DEXs are gaining popularity. As more individuals learn about blockchain technologies, DEXs may gain users.

[CarnagexD]

I think KYC helps exchanges to control and track their users to avoid cases of scam or money laundering...The exchange collapse issue has nothing to do with KYC. The collapse of exchanges has legal implications and the government must be held responsible. But another thing is that we don't want to be controlled by the government, we want to be free, but when we are scammed, we ask the government to solve it. This is one of the loopholes in the crypot market and scammers are fully exploiting it.

The only way users can scam an exchange is if they can hack it, aside from that I don't see any possibility. KYC is just a simple verification process where an exchange would like to know their users and it's mandatory to all legal exchange as they are regulated by a certain agency of the government, so there's no need to question that because exchanges nowadays are like banks.

If we are expecting full anonymity, then there's always this decentralized exchange, but the problem is they don't have the volume like CEX, and that only tells us that more people trust centralized exchange over decentralized exchange which we can conclude that most of them do comply with the KYC.

You don't need to avoid Know Your Customer (KYCs). It is intended to protect you and the gambling company. Unless you are going to do something illegal well of course you have to fear it. But these procedures are a standard requirement for most legitimate cryptocurrency exchanges. These procedures are mandated by regulatory agencies to ensure that exchanges can verify the identities of their users. By doing so, exchanges can comply with legal frameworks aimed at preventing illegal activities like money laundering and fraud.

[Smack That Ace]

I think KYC helps exchanges to control and track their users to avoid cases of scam or money laundering...The exchange collapse issue has nothing to do with KYC. The collapse of exchanges has legal implications and the government must be held responsible. But another thing is that we don't want to be controlled by the government, we want to be free, but when we are scammed, we ask the government to solve it. This is one of the loopholes in the crypot market and scammers are fully exploiting it.

The only way users can scam an exchange is if they can hack it, aside from that I don't see any possibility. KYC is just a simple verification process where an exchange would like to know their users and it's mandatory to all legal exchange as they are regulated by a certain agency of the government, so there's no need to question that because exchanges nowadays are like banks.

If we are expecting full anonymity, then there's always this decentralized exchange, but the problem is they don't have the volume like CEX, and that only tells us that more people trust centralized exchange over decentralized exchange which we can conclude that most of them do comply with the KYC.

KYC is essential to this progress. It reassures markets and regulators that fraud will decrease. KYC may deter bad behaviour, but no system is immune to hacking.

DEX may not have as much traffic as centralised exchanges, but they offer something special. You can encounter people who prioritise independence and decentralisation over speed and money there. CEX have the most users, however DEXs are gaining popularity. As more individuals learn about blockchain technologies, DEXs may gain users.

If evaluated fairly, DEX is not a new technology on the market, it has appeared and existed for quite a long time but because of some limitations, it still cannot compete with CEX. CEX really brings more utilities and services that we need and almost people cannot give up CEX even though they know that there are many risks when using it.

DEX has its advantages and especially emphasizes privacy, but it cannot be denied that the liquidity of DEX is really too small compared to CEX. Frankly, I also do not believe that the game will become fairer, CEX will still prevail whether we believe it or not.

[BVeyron]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

KYC is the main tool, which is used by crypto enterprises to avoid court issues. First group of court issues are problems of the enterprise itself: accusations of tax evasion, money laundering etc. Since all the cryptocurrencies are anonymous, it's really hard to prove innocent without bunches of KYC data. Second group of cases are person vs person cases, in which the enterprise is a platform for money exchange. In such cases if all the transactions are deanonymised and registered, it might make clear who tells the truth who lies and what really happened. If such transaction registries are not made, then the enterprise itself can easily become te next victim of this court case.

[coinerer]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

The reason for making KYC mandatory is to prevent activities like money laundering. Because his kyc document will be given there. Whether or not to use a platform is entirely a personal matter for an individual. If you don't want to do kyc you can use DEX instead of CEX where no kyc is required. But if you are using CEX then you need to complete kyc as it falls within their terms & conditions. And to use their service must follow their terms & conditions

[Ale88]

I think KYC helps exchanges to control and track their users to avoid cases of scam or money laundering...The exchange collapse issue has nothing to do with KYC. The collapse of exchanges has legal implications and the government must be held responsible. But another thing is that we don't want to be controlled by the government, we want to be free, but when we are scammed, we ask the government to solve it. This is one of the loopholes in the crypot market and scammers are fully exploiting it.

The only way users can scam an exchange is if they can hack it, aside from that I don't see any possibility. KYC is just a simple verification process where an exchange would like to know their users and it's mandatory to all legal exchange as they are regulated by a certain agency of the government, so there's no need to question that because exchanges nowadays are like banks.

If we are expecting full anonymity, then there's always this decentralized exchange, but the problem is they don't have the volume like CEX, and that only tells us that more people trust centralized exchange over decentralized exchange which we can conclude that most of them do comply with the KYC.

You don't necessarily need to hack the whole exchange, you can just get access to a single profile and then steal whatever is in it. Unfortunately still nowadays many people don't use 2FA and their passwords are extremely easy to guess, that is the real problem. People should understand that they need to use all the security tools the exchanges provide, and especially avoid using the phone number to receive texts, etc.

[salad daging]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

The reason for making KYC mandatory is to prevent activities like money laundering. Because his kyc document will be given there. Whether or not to use a platform is entirely a personal matter for an individual. If you don't want to do kyc you can use DEX instead of CEX where no kyc is required. But if you are using CEX then you need to complete kyc as it falls within their terms & conditions. And to use their service must follow their terms & conditions

And because of local regulations when they experience problems such as money laundering, the platform can find out by doing the documents provided, so the exchange will apply KYC to all users not just for large transactions.
With you already doing KYC, any activity will be known by the centralized platform, so inevitably KYC must be an obligation for us at CEX. If there are other options then use a less strict one because there are still some that enforce this if you want to be completely anonymous then indeed DEX is the solution, but I'm sure more use CEX than DEX.

[Bushdark]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

The reason for making KYC mandatory is to prevent activities like money laundering. Because his kyc document will be given there. Whether or not to use a platform is entirely a personal matter for an individual. If you don't want to do kyc you can use DEX instead of CEX where no kyc is required. But if you are using CEX then you need to complete kyc as it falls within their terms & conditions. And to use their service must follow their terms & conditions

There are many reasons why KYC is mandatory on centralized exchanges and is mostly because of the government interest on certain matters. Apart from the government too, the exchange need to be prepared for the worse in case something happens that need to very the identities of users mostly when something like scam and hacks happen.

 Know your customers help centralized exchange to check in on who there customers are and how they make transactions whether it involves money laundry or not. The centralized exchanges are mostly government influenced.

[Kasabus]

CEX are highly regulated by groups or entities, so it’s also expected that this exchange in return will also follow what the regulators have imposed to them. And this compulsory KYC is one factor that will make an exchange more centralized and monitored by the government or any other group or entity. That’s why if you are in a centralized exchange, consider KYC as compulsory.

[Mr.right85]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

Good enough it’s what you think should be the case and that isn’t what is for some good reason. Maybe not to user’s advantage but, it sure do helps the exchange with regards to authorities which in turn, ensures there are these services for crypto investors to use.

KYC is simply a an avenue for these firms to have some idea on whom there customers are. That’s not so much but, where it becomes an issue is, what would these guys do with this data, who are those it’s exposed to, how could they be sure it doesn’t fall into the wrong hands and more of concerning questions as those. That’s where the issue always comes in. That’s why it’s cool to use that which makes you feel safe or you could trust.

Don’t forget, these are centralized exchanges and they’ve got to play in accordance with the laws of the jurisdiction in which they operate to avoid being short down.

[jeraldskie11]

CEX are highly regulated by groups or entities, so it’s also expected that this exchange in return will also follow what the regulators have imposed to them. And this compulsory KYC is one factor that will make an exchange more centralized and monitored by the government or any other group or entity. That’s why if you are in a centralized exchange, consider KYC as compulsory.

When we utilized CEX, we had to go through a KYC process before we could withdraw, and if we didn't, we could only withdraw a small amount of money till we submitted. If the exchange do not have KYC, your payment options are limited to banks that agreed in your terms and conditions that you would not utilize KYC.

Because CEX users are transparent to them, it may put their identities at danger of being sold to criminals, particularly those with the most money in their wallet. Because they are worried of this, many crypto users choose to use DEX. Even if I only have a modest budget, I'm still afraid but it's preferable to utilize CEX because there's no hassle.

[virasog]

Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?

The reason for making KYC mandatory is to prevent activities like money laundering. Because his kyc document will be given there. Whether or not to use a platform is entirely a personal matter for an individual. If you don't want to do kyc you can use DEX instead of CEX where no kyc is required. But if you are using CEX then you need to complete kyc as it falls within their terms & conditions. And to use their service must follow their terms & conditions

CEX needs to abide by government laws and regulations. Therefore they take proactive measures by enforcing KYC so that in future if they are questioned about the illegal use of money (Money laundering etc), they have the details of the person and they can give this data to the authorized agencies upon request. If the CEX won't implement the KYC, they can get into trouble themselves.

Also, I think people may report that a certain CEX is running without the KYC and it can lead to the closure of their business by the authorities. In simple words, it's hard to run an exchange business without implementing the KYC.