WHY VERIFICATION IS IMPORTANT TO CRYPTO USERS AND INVESTORS

[suzanne5223]

Just as we have many misconceptions about so much verification process that we feel may compromise our financial privacy I think it's cool we see some of the benefits of having to verify so we can balance our understanding and know how and why it's important we do these verification while we're careful too when doing it.

I think you don't get the point about the actual reason why most people in the cryptocurrency space never like the idea of KYC verification and it's we never understand the advantages but people are concerned about the disadvantages.
If the government cannot do something about the Big Brother tech company that's abusing the people's private information and also making billions every year through it there's no guarantee they will with ID verification information collected.
Until the government introduces a decentralized blockchain for private data storage people will never trust their private information with them.

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[hatshepsut93]

2. **Regulatory Compliance** Verification ensures adherence to essential regulatory standards like anti-money laundering (AML) and Know Your Customer (KYC) requirements. Complying with these regulations not only safeguards investors but also establishes a transparent and secure framework for Bitcoin transactions.

This is the only valid reason to pass KYC. If you want to have your Bitcoin gains turned into some $$ in your bank account, you'd better do it through a regulated exchange that is acceptable to deal with by banks and regulators. Because if you get a large enough sum through p2p trading or cash deposit - it's almost guaranteed that your bank will ask you about the source of your money and demand a proof, because in their eyes it's a high-risk behavior that is typical for illegal businesses or money laundering.

[Adbitco]

Kyc as we may know doesn't have anything to play in bitcoin as you may calls it bitcoin ecosystem, from people already explained bitcoin doesn't request your data to be processed or even transferred to your wallet the issues of KYC plays in where we seems to have moved our fund to Centralized exchange were they require their clients to abide to their ToS causing people to pass through kyc in order to stop and monitor money laundering, with your details (KYC documents submitted) you would be traced for any illegal activity that was carried out within your deposit to their exchange platform. But if you don't want to associate yourself with kyc then you have to avoid centralized platform be it exchange or gambling site that often request for your details to enable you processed your transactions.

[dzungmobile]

for me KYC does not give customers 'trust' in the service

regulated exchanges do NOT offer customers a insurance whereby if exchange went bankrupt, insolvent or charged, people can instantly be settled out and refunded.

the KYC is to police customers to stop certain customers doing suspicious things.

IF KYC was only used to sign people into a group insurance where they would get paid out within 14days of business insolvency. and KYC was only used for this consumer protection.. then great KYC would be a benefit

but exchanges do not use KYC for consumer protection. its used for consumer policing

hopefully one day regulators will start to care more about consumer protection, not consumer policing

KYC is for benefit of exchanges and they do it mainly because governments want them to do KYC against customers.

Why KYC is extremely dangerous – and useless

KYC on centralized exchanges can help big users if they want to file lawsuits against scammers or trace hackers but those big scams or hacks don't usually happen. For most of users, small users KYC does almost not mean anything useful and helpful for them. They usually accept their small loss and move on.