Does your local CEX as you to verify the information of your sender

[dimonstration]

Is this coins.ph? I stop using this shit CEX since they start lowering limits based on your KYC level and they will put you to custom limits which is very low depending on your KYC verification.

They are the first CEX to implement a much tighter KYC even though KYC is still not yet strict on Philippines.

Now they level up with this new feature which is already absurd.

[noorman0]

Is this coins.ph? I stop using this shit CEX since they start lowering limits based on your KYC level and they will put you to custom limits which is very low depending on your KYC verification.

They are the first CEX to implement a much tighter KYC even though KYC is still not yet strict on Philippines.

Now they level up with this new feature which is already absurd.

Just did a Google search, and it turns out that's your largest local exchange (cmiiw). And there's PDAX next in line, do they also implement similar measures?
Local exchanges typically have similar rules, as they're subject to a single regulation. This would be a favorable situation, without worrying about losing users if your government were to disallow or tighten regulations for global exchanges like Binance to operate.

[TryNinja]

I had a CEX ask me for proof of the funds that where deposited when someone repaid a loan from the forum. I said it was a loan repayment from someone on bitcointalk, they asked for proof, I just sent them the URL of the thread, and that was it...

To ask for the actual information of a random and anonymous user online, that's a bit crazy.

@aioc, what happens when you say that the user won't share this information (obviously)? Do they just block your funds?

[Zwei]

in today's episode of WTF, brought to you by your local CEX 

had to deal with something like this once on payoneer, they grilled me for my client info, chat logs and the work i had done for them, even tho that's a fiat platform, it was still ridiculous.
i guess CEXs are going full circle and reinventing fiat platforms, and somehow they are making them even worse.

It's from a Philippine local exchange and he's right that we're always asked as in every transaction that comes to you, they'll ask you automatically where it came from or whom sent it to you. And that's why I just fill it in always with the answer that it is from "myself" and I just post the TXID in the form that they provide to us and then it's good to go.

do they not check if the transaction really came from "yourself"? and what happens if you don't have the sender details?

It's an easy requirement but they shouldn't really be asking that info anymore. I guess it has something to do with our central bank being too strict with their rules for the local exchanges to avoid anti money laundering.

it's easy now, untill they start asking for more, and money laundering is just an excuse (like always), they just want to take your privacy away.

[LastKiss]

~snip~
Do you have these kinds of rules on your local CEX

Fortunately, no. I’m using crypto only to transfer funds so they arrive as quickly as possible. When a transaction requires filling in someone’s information, it ends up wasting time. As long as they only ask simple questions and don’t request personal or sensitive information such as ID numbers, phone numbers, or details that could be used for promotions then it’s fine.

[Yaunfitda]

~snip~
Do you have these kinds of rules on your local CEX

Fortunately, no. I’m using crypto only to transfer funds so they arrive as quickly as possible. When a transaction requires filling in someone’s information, it ends up wasting time. As long as they only ask simple questions and don’t request personal or sensitive information such as ID numbers, phone numbers, or details that could be used for promotions then it’s fine.

They will ask for that information once you registered on them, they will as they have to comply with AML. And assuming that this could have been a result of what is going on in the Philippines with the news of corruption and there have been noises that some of the accused are washing away their money using Bitcoin and any other crypto for that matter. So maybe that's why the local exchange are going to ask for the source of funds. Although I think anyone can get away with it by saying that it comes from them or even told them that it's a payment for certain services.

[dimonstration]

Is this coins.ph? I stop using this shit CEX since they start lowering limits based on your KYC level and they will put you to custom limits which is very low depending on your KYC verification.

They are the first CEX to implement a much tighter KYC even though KYC is still not yet strict on Philippines.

Now they level up with this new feature which is already absurd.

Just did a Google search, and it turns out that's your largest local exchange (cmiiw). And there's PDAX next in line, do they also implement similar measures?
Local exchanges typically have similar rules, as they're subject to a single regulation. This would be a favorable situation, without worrying about losing users if your government were to disallow or tighten regulations for global exchanges like Binance to operate.

It’s true since coins.ph is the first local crypto exchange available on the PH but they have much tougher KYC requirements compared to other local exchange.

They once confiscated funds that comes from online gambling and mixer which other exchange doesn’t have this terms.

Local exchange in my country has a very poor service offered that’s why Binance is still much popular here even if the exchange was ban by our country.

[aioc]

@aioc, what happens when you say that the user won't share this information (obviously)? Do they just block your funds?

Honestly, I don't have an idea. The worst that could happen is if someone sends me coins, and he is only known by his pseudonym. Since I've been using this exchange for 4 years, I can trade and cash out before providing the sender's details. I'm not familiar with the others.
I have a friend who uses a fictitious name because he does not know the real one.
They allow it for small transactions; for larger amounts, they will record it and question the sender.

[Darker45]

I have a friend who uses a fictitious name because he does not know the real one.
They allow it for small transactions; for larger amounts, they will record it and question the sender.

Not allowed as in Coins is fully aware it's a fictitious name and just let it pass because the amount of transaction is small. It was allowed only in the sense that your friend wasn't caught. He wasn't caught because small transactions don't require stringent processes. But it doesn't mean giving fictitious names is fine with Coins. It isn't.

Also, I'm sure transactions are logged and recorded whether big or small. In which case, I'd rather not provide made-up names even with small amounts. It might cause you unnecessary trouble in the future. Remember, Coins have your full name, complete address, contact information.

I wonder why you're still sticking with Coins.

[avp2306]

One of the things that I find annoying is how our local CEX asks for the details of your sender, so if you happened to do a P2P on forums like Bitcointalk, you will have to ask him his full name, so our local exchange will not possibly restrict or question the transaction, it's the only local CEX that has this rule. Hence, I seldom use this local exchange.

Do you have these kinds of rules on your local CEX

Crazy that they are taking everything to next level and it seems that all their users are under surveillance.

I will not use that exchange at any cost since I'm afraid next to that is freezing of users account if they find something suspicious. Users seems under control of dictator platform and government since looks like they want to know everything about your transaction.

That kind of verification is big red flag so as what stated better avoid that and use other alternative platform which does not ask same requirements.

[bhadz]

@aioc, what happens when you say that the user won't share this information (obviously)? Do they just block your funds?

Honestly, I don't have an idea. The worst that could happen is if someone sends me coins, and he is only known by his pseudonym. Since I've been using this exchange for 4 years, I can trade and cash out before providing the sender's details. I'm not familiar with the others.
I have a friend who uses a fictitious name because he does not know the real one.
They allow it for small transactions; for larger amounts, they will record it and question the sender.

It's conditional and likely to delay the withdrawal from that fund, maybe they will after multiple of those questions haven't been answered or when you keep them afloat. I have done it in the past that I didn't answered it, and you're right about the larger amounts, they're stricter with those funds coming into them. If you don't answer and provide info with it, the question is more and likely to ask you for supplementary documents just to proof that it's your money.

[noorman0]

-snip-
Local exchange in my country has a very poor service offered that’s why Binance is still much popular here even if the exchange was ban by our country.

It's likely that none of your local exchanges offer superior service. It's no wonder global exchanges are like magnets; even without a license, they still fill a niche market in your region.

The inability of local exchanges to meet user expectations could be another reason why exchanges like Binance often face regulatory sanctions.

[Strongkored]

Do you have these kinds of rules on your local CEX

I haven't checked their terms and conditions, but in my years of experience using the local exchanges I regularly use, I've never encountered anything like what you're experiencing.
It's unfortunate that the exchange is causing users such difficulties.
This might be a cause for concern, as other exchanges may implement similar regulations in the future.

[Synchronice]

There are several CEXs in our country, and only one local exchange requires this kind of verification; the others do not. They claim to be the number one local exchange, but with this kind of feature, many local traders will transfer to competitors. It's annoying that they have to do this; it's understandable if the others are doing it too, but they are the only ones.

This is crazy and the exact opposite of what satoshi created Bitcoin for. He wanted to get rid of 3rd parties during payment and now we not only do not get rid of 3rd parties but now we have to even write down who is the sender, what's his/her height and so on. This is ridiculous. Everyone should move away from such exchanges and it will force them to either shut down or experience loss over profit.

By the way, what happens if someone anonymous sent me 1 Bitcoin? Is that one Bitcoin lost because I don't know the sender? What if I have coins from 2013 and I don't remember the origin? Also what happens if I lie to them? How are they gonna know who is the real sender? Are they actually gonna call that person and ask for ID verification? This madness has no end.

[albon]

By the way, what happens if someone anonymous sent me 1 Bitcoin? Is that one Bitcoin lost because I don't know the sender? What if I have coins from 2013 and I don't remember the origin? Also what happens if I lie to them? How are they gonna know who is the real sender? Are they actually gonna call that person and ask for ID verification? This madness has no end.

They may require personal documents or a wallet signature for large transactions, making compliance very difficult.

Furthermore, based on the information Op mentioned, they won't know the source of the funds unless they request further advanced investigation and as we know Bitcoin relies on the blockchain not on the identities of those using it. I have never seen such ridiculous requirements on any exchange I’ve used before, except in the case OP raised.

Any CEX that imposes these requirements becomes clearly inconvenient to deal with. There are many well-known, centralized global exchanges that undoubtedly better than this local exchange, as they do not force clients to confirm each transaction or provide sender information. Even if these requirements are for compliance purposes, they could potentially exploit their clients at any time for any reason.

[julerz12]

By the way, what happens if someone anonymous sent me 1 Bitcoin? Is that one Bitcoin lost because I don't know the sender? What if I have coins from 2013 and I don't remember the origin? Also what happens if I lie to them? How are they gonna know who is the real sender? Are they actually gonna call that person and ask for ID verification? This madness has no end.

Even with just 50,000 PHP or $850, you're already required to submit a very specific set of info of your sender, so if it is that big (1 BTC is around 5 million PHP) your account will certainly get flagged and "reviewed" for AML policies.
Now I can't say for certain what happens next if you won't be able to provide clear info as to who the sender is, or if you could just straight up lie about it (might be possible on small amounts, those they don't care about). Most probably, the account gets frozen for God knows how long. 

While this is truly a hassle for everyone who still uses this exchange, it's worth noting that the Government itself implemented this. The exchange is probably just following the government's mandate since it is a licensed and regulated exchange.
https://support.coins.ph/hc/en-us/articles/4403972763033-Why-do-I-need-to-provide-sender-information-to-receive-my-funds
https://www.bsp.gov.ph/Regulations/Issuances/2023/M-2023-042.pdf

P.S. I'm not using their services anymore, either (don't bite me). 

[Rikafip]

Do you have these kinds of rules on your local CEX

Nope.

As a matter of fact, one of our local exchanges even allows you sell/buy up to 1k euro worth of crypto without any KYC, which is a rare thing nowadays. They will surely change the policy in the future, but gonna enjoy it while I can.

[joniboini]

While this is truly a hassle for everyone who still uses this exchange, it's worth noting that the Government itself implemented this. The exchange is probably just following the government's mandate since it is a licensed and regulated exchange.

Well, this is not a surprise. On the other hand, someone claimed that other exchanges haven't gone to this degree yet, so is there an interpretation issue, or are they just not up to date with the government? Really can't imagine why an exchange would try their best to discourage customer from using their services, other than laws like this.

[fortunecrypto]

Coins.ph is acting like a bank with this feature. Why can't they be like PDAX or any other local exchange that doesn't ask for the sender's information? I know that they are trying to protect their platform and want to be compliant; they can do it with a considerable amount of transactions, but not with a small amount.
They ask for information even if the amount is $5 or even less.

[Synchronice]

Even with just 50,000 PHP or $850, you're already required to submit a very specific set of info of your sender, so if it is that big (1 BTC is around 5 million PHP) your account will certainly get flagged and "reviewed" for AML policies.
Now I can't say for certain what happens next if you won't be able to provide clear info as to who the sender is, or if you could just straight up lie about it (might be possible on small amounts, those they don't care about). Most probably, the account gets frozen for God knows how long. 

While this is truly a hassle for everyone who still uses this exchange, it's worth noting that the Government itself implemented this. The exchange is probably just following the government's mandate since it is a licensed and regulated exchange.
https://support.coins.ph/hc/en-us/articles/4403972763033-Why-do-I-need-to-provide-sender-information-to-receive-my-funds
https://www.bsp.gov.ph/Regulations/Issuances/2023/M-2023-042.pdf

P.S. I'm not using their services anymore, either (don't bite me). 

If this is implemented by the government itself, then I think that if you deposit as big amount as 1 Bitcoin on your account's address and you will not be able to provide detail, the exchange will confiscate your money after a certain period of time and that money will go to the government. To my mind, there is also a chance that an investigation will start about the history of funds and if found guilty, you can be in trouble.
By the way, I wonder if there are moments when they freeze your accounts but do not inform the government about that, confiscate your money and put it in their own pockets instead of giving it to the government.