Just a quick one, about KYC.

[Dr.Bitcoin_Strange]

Hello friends, Here in my country, it's already a new month, and I assume some of you are yet to enter a new month, but I am wishing you guys a happy new month and a happy Halloween 🎃👻🍬 season in advance.


Please, I want to ask a question and am asking the question with respect to educational materials I was creating. I would be glad if more experienced users would provide me with more explanations that could help me give a detailed explanation of the content I am preparing. Thanks guys

Question 🙋

KYC is an attack on Bitcoin, and it's usually advised for Bitcoiners to stay away from passing KYC and exposing their private information. So, my question is, since there are some cryptocurrency exchanges that don't make KYC compulsory for the purchase and withdrawal of a certain amount of Bitcoin, what is the risk of purchasing Bitcoin on such an exchange?

Rephrase

Doe's purchasing Bitcoin on a centralized exchange where you don't pass KYC (KYC is maybe not compulsory) have any threat (harm) on the Bitcoiner? Or can the Bitcoiner still be tracked or identified by the CEO through other means?

[Gladitorcomeback]

Doe's purchasing Bitcoin on a centralized exchange where you don't pass KYC (KYC is maybe not compulsory) have any threat (harm) on the Bitcoiner? Or can the Bitcoiner still be tracked or identified by the CEO through other means?

I remembered that one other thread was also created with same questions and many experienced members replied.

As far as I know In Cex without kyc our privacy is safe until ask for kyc. The only risk in these exchanges is that sometimes when you deposit big amount then they ask for KYC to withdraw your fund which is very common now and exchanges excuses for suspicious behavior so now you have to pass kyc to withdraw fund so your privacy not secure now.

[Coyster]

Doe's purchasing Bitcoin on a centralized exchange where you don't pass KYC (KYC is maybe not compulsory) have any threat (harm) on the Bitcoiner?

The only privacy risk is that the exchange can lock your funds and ask for KYC at anytime; as for the security risks, it remains the same with every other centralized exchange, in that they are a third party in your trade and control the funds you deposit into the exchange (funds that they can confiscate). The exchange can as well be hacked or go bankrupt just like any other centralized exchange, and if your assets are kept there, you'll lose it.

Or can the Bitcoiner still be tracked or identified by the CEO through other means?

Mind you that even using decentralized exchanges isn't enough if you want privacy and you also don't want to be tracked. You have to use coinjoins or mixers if 'anonymity' is what you are looking for.

[ImThour]

There are exchanges here that do not require you to provide KYC details however there are limits and various issues that could occur by not going with KYC on an exchange that owns your crypto.

1. They actually own all your Crypto, as it's not your key. And, they can deny withdrawals without KYC anytime.
2. They can also close your account and limit you off from your own coins and you can't complain anywhere because you opt-in for a non-KYC exchange.

There are also limits on withdrawals.

[EL MOHA]

Question 🙋

KYC is an attack on Bitcoin, and it's usually advised for Bitcoiners to stay away from passing KYC and exposing their private information. So, my question is, since there are some cryptocurrency exchanges that don't make KYC compulsory for the purchase and withdrawal of a certain amount of Bitcoin, what is the risk of purchasing Bitcoin on such an exchange?

I don’t think there could be any risk just that it will sooner or later ask for the KYC if it is a centralized exchange because of regulations. Also when the exchange encounters problem it will be those who have completed  KYC that would get a refund so you would have be very careful of this exchange’s that do both non KYC and KYC. This is not by any chance advising you to move to those with KYC protocols but for full privacy stick to just decentralized exchanges.

Rephrase

Doe's purchasing Bitcoin on a centralized exchange where you don't pass KYC (KYC is maybe not compulsory) have any threat (harm) on the Bitcoiner? Or can the Bitcoiner still be tracked or identified by the CEO through other means?

this is similar to the answer above. But concerning bitcoin been traced without any KYC information i would say it would be hard to trace it directly to the person. But since bitcoin transactions is stored publicly on the blockchain then I would say it can be monitored most especially if the bitcoiner uses a single address for all gis transactions and once you get monitored there is believe that you could get caught. That’s why it is better to use different addresses for every transactions

Another thing is some use’s usually register on exchanges using phone number and even if that exchange doesn’t requires KYC, your phone number can be used to trace you except if you register the SIM card with fake identification

[Jawhead999]

Most of the time any centralized exchanges have a terms to not use VPN and you must use your real name.

During registrations you're have submit your real name, show your real IP address, email address and your Bitcoin address. So they know your 4 personal data and they can use this to get more information by cooperating with other centralized sites.

[NeuroticFish]

Doe's purchasing Bitcoin on a centralized exchange where you don't pass KYC (KYC is maybe not compulsory) have any threat (harm) on the Bitcoiner? Or can the Bitcoiner still be tracked or identified by the CEO through other means?

If you'll transfer money from a bank account, they can link the address(es) to your name. If you don't, they can still track your addresses, they can put them under a Unknown49436 name until you make a move that is KYC related and then they can labe it properly. Of course, that's only (heh) privacy problem, not actual harm (especially if you're a good citizen and pay the required tax on your money or gains).
The real threat, as said, comes from the fact that "not your key, not your coins" and if you use exchanges with "unknown" reputation (to say it nice). If you're unsure of the reputation of the exchange you want to use, better ask around.

I will add that the bigger risk for operations with centralized exchanges may actually be your own bank (if you go on that route). Some of them may ask odd questions or even close your account because they made up odd policies against crypto.

[Hatchy]

Another thing is some use’s usually register on exchanges using phone number and even if that exchange doesn’t requires KYC, your phone number can be used to trace you except if you register the SIM card with fake identification

It's same thing I taught here. These exchange sometimes requires users to create an account using their mobile phone no, of which a verification code will be sent. This way, I don't see in any way how you have kept your privacy from them. As your phone number will be registered with real time informations about you.


many cryptocurrency exchanges, including those initially advertised as no KYC or decentralized, may eventually require users to complete KYC verification due to regulatory pressures. Government policies can indeed influence exchanges to implement KYC procedures in order to comply with anti-money laundering and taxation regulations. So there's a risk that you might not be able to withdraw your funds when this happens especially if you are the no KYC type. it's better to have it in mind that exchanges will ask for the KYC when they are forced to comply with the government policies.

[Faisal2202]

KYC is an attack on Bitcoin, and it's usually advised for Bitcoiners to stay away from passing KYC and exposing their private information. So, my question is, since there are some cryptocurrency exchanges that don't make KYC compulsory for the purchase and withdrawal of a certain amount of Bitcoin, what is the risk of purchasing Bitcoin on such an exchange?

The first risk is that centralized exchange might freeze your coins or assets until you provide KYC, buying BTC from exchanges is not wrong but keeping them on exchanges is wrong, because "not your key, not your coin". The second risk might be, that those exchanges are just a hub of scammers and they just want you to use those exchanges, but this risk can be managed if one has the knowledge to differentiate a good and a scam exchange.

In my thought, KYC is not a thread or attack to BTC, I know the BTC is made to avoid the middleman and the troublesome work of providing the documentation, but besides that, Due to the KYC factor, many people started to think about BTC just like due to the ETFs more people will come to trust the BTC. I hope you understand what I am talking about.

Doe's purchasing Bitcoin on a centralized exchange where you don't pass KYC (KYC is maybe not compulsory) have any threat (harm) on the Bitcoiner? Or can the Bitcoiner still be tracked or identified by the CEO through other means?

The buyer or seller can still be tracked by the CEO (if he is a technical guy) but most CEOs are just a guy with money, and yes, even using a centralized exchange without KYC is a like taking a huge risk. You should read the following topic by Ratimov for a better understanding of KYC and exchanges, I hope this thread will help you to make the better content, that you are planning to make.
My 7 years of experience with CEXs (4 years on Bitcointalk)

[goxcraft]

Whatever the case centralized exchange or decentralized exchange, you should always avoid doing any kind of KYC. The goal is to be anonymous as much possible. So that we don't get involved or connected in any illigal activity. We shouldn't forget what happens when these so called exchange gets breached or sometimes sells our information willingly. I'm not talking about any small level exchange, I'm talking about "Coinbase" where they were caught red handed selling customers private information. And they can always freeze your assets, that's also a key point. Crypto gave us our financial freedom, you don't wanna risk that with KYC.

Why KYC is extremely dangerous - and useless

The Coinbase Case: https://www.financemagnates.com/cryptocurrency/news/coinbase-admits-its-former-data-provider-sold-client-data/

[Dr.Bitcoin_Strange]

Most of the time any centralized exchanges have a terms to not use VPN and you must use your real name.

During registrations you're have submit your real name, show your real IP address, email address and your Bitcoin address. So they know your 4 personal data and they can use this to get more information by cooperating with other centralized sites.

I think that despite using a real name without any valid means of proper identification, it's just useless because there are a lot of people that have similar or similar names around the world. For example, if my name is John Leen, there are a lot of people answering the same name coincidentally.

About the email address, you could just create some random email without giving off much of your details during the email creation.

I feel more convinced about the IP address aspect because I think they could track someone easily with it.

When I created one of my emails, I was asked to provide my mobile number, which I did not, and I did not even use my real name. So while signing up on CX, I could just decide to use my email.

I remembered that one other thread was also created with same questions and many experienced members replied.

I think so too, but I tried to search through the forum but could not find any results. I will be very happy if you can link me to the thread, or someone who remembers the old thread can mention it here.

You have to use coinjoins or mixers if 'anonymity' is what you are looking for.

Some months ago, I talked about mixing Bitcoin on a mixer, but one old member of the forum said that mixed Bitcoin is treated like a tinted coin by CX. But I think it's very necessary for anonymity sake.

Another thing is some use’s usually register on exchanges using phone number and even if that exchange doesn’t requires KYC, your phone number can be used to trace you except if you register the SIM card with fake identification

Yeah, that's correct, but to prevent that, the person can use email instead of a mobile number.

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👏👏👏👏👏👏👏👏

In my thought, KYC is not a thread or attack to BTC.

I hope you understand what I am talking about.

You should read the following topic by Ratimov for a better understanding of KYC and exchanges, I hope this thread will help you to make the better content, that you are planning to make.
My 7 years of experience with CEXs (4 years on Bitcointalk)

Yeah, I understand your point, but I still insist on my first comment: KYC is an attack on Bitcoin; maybe I will be more detailed about my opinion in the content I am making.

Finally, thanks for sharing this thread. I appreciate that.

[Broadanbig]

Exchanges as we all know are third party agent or organisation that came into play to aid in the fast and wide spread of Bitcoin and crypto currency globally. The advent of exchange paved way for the fast adoption of Bitcoin on individual basis because exchanges are like a door step services where you can easily access your assets at your comfort zone compared to the banks.

KYC as you have said was not part of the Bitcoin goal and as a matter of fact, I see it as anti Bitcoin because it is not inline  with Satoshi  dream on inventing the Bitcoin. The Bitcoin was invented as a pseudo anonymous assets where by the identity of the holders would not be revealed in any way but gradually as the awareness and adoption became popular, the government took advantage of the situation by holding them to ransome forcing them to conduct KYC on their registered members which in other words reveals the identity of Bitcoin holders on their various platforms. This further reveals everything about a bitcoin investor making their identity not safe anymore.

If an exchange chooses not to impose KYC on her clients, that is their decision but as an investor or a trader you need be smart and wise with your assets and funds. It is always advised not to save your assets on exchange because of the possibility of exchange being too porous for hackers or running away with ones funds. When trading, you should be able to transfer your assets out of the exchange after that to keep you on the Safe side.

Lastly, risk of purchasing Bitcoin on exchange with no  KYC features is high though just like the risks involved in doing  KYC on exchange with such features. When buying on such exchange, there is every possibility that you have purchased a stolen asset being tracked, there every tendency that the exchange might abscond with your assets as the case maybe, you might be under surveillance as your identity is not known to see the end result of the assets you have purchased and where it's going to and who receives it.

KYC or no KYC exchange tends to possess a risky and dangerous modus operandus as it relates to their operations. Either way, they are just an arm of the government to check mate and monitor the activities of Crypto holders and keep them on the check.

[Fiatless]

Doe's purchasing Bitcoin on a centralized exchange where you don't pass KYC (KYC is maybe not compulsory) have any threat (harm) on the Bitcoiner? Or can the Bitcoiner still be tracked or identified by the CEO through other means?

Government policies are ever-dynamic. In some cases, these laws must be immediately adopted or implemented by businesses.  An exchange operating a KYC-free crypto business can be forced to change this policy because they have been mandated to do that by a new law.  Also, customer's funds can be frozen until they provide the needed personal information. There are also cases where the government can seize exchange without notice and compel the client to produce some data before the release of their funds. It is always better to use decentralized exchange and if you must use centralized exchange, don't keep your funds with them.

[macson]

Another thing is some use’s usually register on exchanges using phone number and even if that exchange doesn’t requires KYC, your phone number can be used to trace you except if you register the SIM card with fake identification

It's same thing I taught here. These exchange sometimes requires users to create an account using their mobile phone no, of which a verification code will be sent. This way, I don't see in any way how you have kept your privacy from them. As your phone number will be registered with real time informations about you.

Some exchanges implement this for fund security reasons, it cannot be denied that when you activate this feature your privacy is exposed.

many cryptocurrency exchanges, including those initially advertised as no KYC or decentralized, may eventually require users to complete KYC verification due to regulatory pressures. Government policies can indeed influence exchanges to implement KYC procedures in order to comply with anti-money laundering and taxation regulations. So there's a risk that you might not be able to withdraw your funds when this happens especially if you are the no KYC type. it's better to have it in mind that exchanges will ask for the KYC when they are forced to comply with the government policies.

i still remember how Binance did not implement KYC for users who made small withdrawals, but in the end they were pressured by the SEC to follow KYC rules, so all exchange platforms that are currently non-KYC might in the future follow the rules set by the government in which they operate. If you really want to be safe from worrying about KYC in the future then just trade via P2P or DEX, there are lots of options now.

[BlackHatCoiner]

So, my question is, since there are some cryptocurrency exchanges that don't make KYC compulsory for the purchase and withdrawal of a certain amount of Bitcoin, what is the risk of purchasing Bitcoin on such an exchange?

Depends on the exchange. If you use a truly decentralized, peer-to-peer like Bisq, then the risk is minimized. That means that you only hand over your bank info to some stranger. It's better than a centralized exchange which gathers thousand of clients' data, and much better from KYC-CEX, which gathers even more important data.

The buyer or seller can still be tracked by the CEO (if he is a technical guy) but most CEOs are just a guy with money

It's ignorant to think it that way. But even if it's that the case, the CEO isn't the only person who gets permission to view that data, and it's definitely beyond their permission if their database gets leaked and your data is being at sale for a few bucks in the dark web.

[ZAINmalik75]

Whatever the case centralized exchange or decentralized exchange, you should always avoid doing any kind of KYC. The goal is to be anonymous as much possible. So that we don't get involved or connected in any illigal activity. We shouldn't forget what happens when these so called exchange gets breached or sometimes sells our information willingly. I'm not talking about any small level exchange, I'm talking about "Coinbase" where they were caught red handed selling customers private information. And they can always freeze your assets, that's also a key point. Crypto gave us our financial freedom, you don't wanna risk that with KYC.

I am shocked to hear about this news, I may have heard about it, but it was not on my mind, maybe I forgot about it. Whatever the case is, but you said well. We should not trust on Exchanges with our assets. Either they are Centralized ones or decentralized. We should definitely not trust these kinds of exchanges. But the more shocking thing is, that people nowadays are not only doing KYC but also scanning their eyes, retina scans. For the sake of joining airdrops.

Like that worldcoin, released by OpenAi I think, not sure but a coin dedicated by AI. People who don't know the importance of their identities are giving it away for nothing. While they can get a lot  I am not saying they should sell, but if they get to know the importance of it, then they will definitely not do it.

We should not save our funds on Exchanges, instead hold then on some wallets that are cold ones and also open source.

[cryptoaddictchie]

what is the risk of purchasing Bitcoin on such an exchange?

The risk might possibly if the exchange freeze your bought bitcoin due to suspicious, example you bought a tons of bitcoin on an exchange and you plan to hold it on your wallet for a long time then there might be a chance for them to review if your account is legit or something shady is going on since you bought a huge chunk. Well for that matters its quite scary if you are the one being held.

[Odusko]

One of the risks of decentralized exchange that many have not mentioned is the low trading volume on the exchange and possible government climb down on the exchange at any point in time because of regulations and licensing and that has limited the popularity of decentralized exchange.
The issue of KYC is something that we must settle for at some point and we should identify the risk associated with centralized KYC exchange and how they control your balance and account including your data, now is left for us cryptocurrency users to monitor and build our pathways to staying save in both DEX/CEX exchanges and that is why, we option in for not leaving your funds on an exchange for whatever reasons.

[Bobrox]

Before create or sign up on exchange account we need to read all term of service, if won't KYC due protecting our data privacy don't use an exchange required with KYC but if you have been deposit fund need to KYC if won't your fund freeze. Seems normally with KYC right now because all platform have adopted with KYC not only in exchange market but also some gambling platform have been required with KYC. Actually have another way for user are priority with data privacy by trading on dapp exchange market but I don't have ideas when withdrawing bitcoin or altcoin fund to fiat and cash money without pass KYC trough local exchange market.

Don't worry with KYC because all exchange have secure your data and not publish or selling on dark market, how ever KYC in exchange make us easily for trading and selling fund trough P2P transaction.

[terrific]

Question 🙋

KYC is an attack on Bitcoin, and it's usually advised for Bitcoiners to stay away from passing KYC and exposing their private information. So, my question is, since there are some cryptocurrency exchanges that don't make KYC compulsory for the purchase and withdrawal of a certain amount of Bitcoin, what is the risk of purchasing Bitcoin on such an exchange?

There's not that much volume or liquidity for those exchanges that don't push KYC. This is for most of them.
But there are exchanges that have enough volume and are good to use despite not that asking for kyc. There are only few of them that does this but they're also going to the path that someday they'll be requiring all of their users for KYC.
It is just a matter of time for them until they start asking it mandatory.