Hidden fees and unclear rates are common problems in crypto exchanges. NefiSwap

[NefiSwap]

Thanks sunsilk, that's exactly how it works.

Z-tight, fair question. We're not going to share details about our company setup or our liquidity partners in a public thread, and I understand if that's a reason for some people to pick another service. What we can stand behind is the policy above: funds go back to the source address, unless they're proven stolen or there's an official request.

[Z-tight]

What happens in a situation were the customer refuses to submit their personal information?

If a user refuses to provide the requested KYC documents, the funds are refunded to the original source address. The only exception is when there is evidence or a regulatory request indicating the funds may be stolen.

You say one thing, but your terms in your website say another, are you out of touch with it.

5.3 If you refuse to provide the requested information, or the information confirms a link to illegal activity, the funds may be frozen and held for return to the affected parties through the competent authorities.

According to your terms, failure to provide the requested information could mean that your funds would be confiscated. And you also mention returning funds to affected parties, if the tx has links to illicit activity, lol, i am curious how you'd intend to find the affected parties. And your claim is even more ridiculous when your service is not a registered company.

[NefiSwap]

Z-tight, you were right, thanks for pointing it out. Clause 5.3 didn't match how we actually handle this, and it has been updated on the AML/KYC page: if a user refuses to provide the requested information, the funds are refunded to the source address, minus network fees. Funds are held only when there's evidence they're linked to theft or other illegal activity, or on an official request from the authorities.

[examplens]

Z-tight, you were right, thanks for pointing it out. Clause 5.3 didn't match how we actually handle this, and it has been updated on the AML/KYC page: if a user refuses to provide the requested information, the funds are refunded to the source address, minus network fees. Funds are held only when there's evidence they're linked to theft or other illegal activity, or on an official request from the authorities.

It's unclear to me again. So you make a correction where you talk about a refund, but you still leave the possibility that users' funds will be withheld. The fact that you will change the clause to make it more readable does not mean much, if your business policy remains the same.

Rather, tell us how exactly freezing funds can happen, and which authorities you accept as competent. What is the further procedure in such cases?

[NefiSwap]

Fair questions, so here's how it works in practice.

Our exchange runs through a crypto payment gateway that screens transactions with AMLBot. We don't want to hold anyone's funds, and holding them isn't how we make money.

If a transaction is flagged, the check takes up to 10 business days in standard cases. More complex cases can take longer, but those are the exception.

If a user doesn't provide the requested KYC documents or information, the order isn't completed and the funds go back to the source address.

Funds are frozen only when they're confirmed as stolen. In that case they're reported to the relevant authorities and handled under the procedures of the legal entity responsible.

If you have suggestions on how to make this clearer or better for users, we're open to them.

[examplens]

If you have suggestions on how to make this clearer or better for users, we're open to them.

If you are already willing to give answers, for example, I can't find your regulatory license anywhere, nor the jurisdiction in which you operate. can you give a little more information about it
Also, do you use your own liquidity funds or a third-party liquidity partner?

[NefiSwap]

On liquidity: we work with third-party liquidity partners, and we don't name them publicly.

On licensing and jurisdiction: we're not going to share company registration details in a public thread at this stage. I understand that's a deciding factor for some people, and that's a fair choice for them to make. What we can stand behind publicly is the AML/KYC policy on the site and how we've described it here.

[examplens]

On liquidity: we work with third-party liquidity partners, and we don't name them publicly.

So you are only resellers, which means that you have no influence on KYC requirements, because it depends on the 'partner'. In the first post you wrote "no KYC requirements," which is obviously a lie.

On licensing and jurisdiction: we're not going to share company registration details in a public thread at this stage. I understand that's a deciding factor for some people, and that's a fair choice for them to make. What we can stand behind publicly is the AML/KYC policy on the site and how we've described it here.

I'll take this as if you don't have a license. If there is, there is no reason to hide it. Even if it doesn't exist, you don't have to hide it either, because many really no-kyc exchanges work without a license.
In the end, you will at some point ask the user for personal information, while at the same time taking care of your anonymity.

Big red flag for NefiSwap

[noxswap]

Just to set the record straight: the posts you quoted are from NefiSwap, not from us. NoxSwap is a different service.

For what it's worth, we've never claimed "no KYC, ever". Our site says no KYC for standard swaps and states openly that a large or flagged swap can get an AML check by the exchange executing it, and that declining it means a refund. BitList also ran an independent test swap through us yesterday, with the transactions and the AML result linked: https://bitlist.co/service/noxswap

[examplens]

Just to set the record straight: the posts you quoted are from NefiSwap, not from us. NoxSwap is a different service.

Ok, I corrected it. I apologise. I was looking at your site at the same time, so the domain name probably stuck in my head, and you have similar names.

btw. Why do most new services insist on copying a similar service instead of creating something authentic and unique. Starting with the domain name.

[noxswap]

I didn't research the names of other currency exchange services; we liked the name “Nox,” so that's what we went with. And we pride ourselves on honesty and professionalism toward our clients. We disclose everything publicly, have no hidden fees, have passed an audit, and use PGP—we really do our best to make sure people find their way to us :-)

[NefiSwap]

I think that line is being read more absolutely than it's meant. On standard swaps there's no KYC, from us or from our partners, and that's what the first post refers to. The exception is covered in section 6 of our AML/KYC page: only if a transaction is flagged during AML screening and the source of funds can't be confirmed may we ask for more information. If the user declines, the funds are refunded to the source address, minus network fees.