Bitcoin, Privacy exchanges, and KYC verification

[boyptc]

Let's not hate the centralized exchanges, I'm sure that each of us have used them in the times that we actually need them the most especially during the bull runs for selling and for the time of accumulation.

Just like the crypto online casinos, they have also contributed a lot to the growth of Bitcoin and for this community. Without the earlier ones, the current popular ones won't be as popular as they are right now.

They played a role to become more acceptable and to make the government have more relaxed policies towards Bitcoin.

[Findingnemo]

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They played a role to become more acceptable and to make the government have more relaxed policies towards Bitcoin.

It's the other way round, exchanges became popular when people realize that they can trade it and people started building exchanges and once they became too big, the government made KYC as mandatory even to use these exchanges. But I know that we had times when we could use exchanges with no KYC for lower trading limits like 2btc daily and one who needed higher limits had to go through KYC.

[Hazink]

kYC was a bad idea after all, but we can't control what others do with their Bitcoin, I'm then wondering why this is looking like something that's possible, I believe it would have been a better world without centralised exchanges right from the start.

It could have been better and this fight and the idea that some people have inside their heads about centralized exchanges being the best place for them to leave their coins would not have existed, but these centralized exchanges, from the way I look at it, have contributed to how Bitcoin adoption has moved in the early days, as some people could have not been able to buy bitcoin without centralized exchange help they don’t know how to access the market.

[Luzin]

In the past, it was easily to buy bitcoin without KYC because AML and KYC have been only applied and enforced more strictly in the last four years and around that. It's very possible to accumulate bitcoin anonymously in the past, it's just whether you value your privacy and intend to buy bitcoin anonymously in past years.

I really remember that back then I only needed an email and phone number to register. But that was the past; after that, some exchanges continued to ask for KYC to proceed with all transactions. What can I do? Of course, I meet all the requirements because my assets are there. So far, it really is a dilemma for all of us if in the end we are all connected to the fiat money produced by countries. We will never be fully anonymous as long as Bitcoin or crypto transactions can be used as a means of exchange. Maybe it could work among users themselves, but right now we can't do that because most of us use paper and metal Fiat.  CMIIW

[FinneysTrueVision]

It would have been great if a source had been included rather than just a screenshot of a snippet. The proposal seems interesting, although there are barely any details as to how it would work. There are different types of DEXs, whether order book, AMM, or intents based that allow trading or swapping of Bitcoin, but in my opinion these options have some shortcomings.

A Bitcoin DEX, if it was done right and was easy enough for the average person to use would get a lot of users. The mention of Mercury Layer and Nostr makes me think that this might end up being too technically advanced, though I still welcome the idea.

[The Cryptovator]

I am not against centralised exchange, but I am against keeping your funds in centralised exchanges. Because I have learnt a costly lesson while keeping my funds in centralised exchanges. If we can create a different industry, then it will keep a major role in the crypto economy. For example, centralised exchanges and gambling platforms keep a major role in crypto adaptation.

We know we must care about privacy as well; for that we can use privacy exchange, and as always, I prefer a noncustodial wallet. If you don’t want to use KYC, then still you can exchange or purchase Bitcoin. From the forum also you can buy Bitcoin without KYC from the currency exchange section.

However, we may gain Bitcoin without KYC from various sources as well, like marketing or any other task. From the forum also you may get some job orders that would be paid through Bitcoin, like we are doing the signature campaign.

[SilverCryptoBullet]

I am not against centralised exchange, but I am against keeping your funds in centralised exchanges. Because I have learnt a costly lesson while keeping my funds in centralised exchanges. If we can create a different industry, then it will keep a major role in the crypto economy. For example, centralised exchanges and gambling platforms keep a major role in crypto adaptation.

The risk is most people don't practice like funding their accounts, for example to buy bitcoin, and after that they withdraw bought bitcoin to their non custodial wallets. Their common practice that is risky is buying bitcoin and leaving their coin in account on centralized exchanges for a too long time. Even they don't trade actively, they don't mind to withdraw their bitcoin.

While we all know that with centralized exchanges, risk immediately appears when you fund your account, and a longer time you leave your coins on centralized exchanges, a higher possible risk for your account and fund.

Events made you scare about custodial wallets, centralized exchanges.
47 crypto exchange shutdown by Germany
Court freezes N548.6 Million belonging to ‘ByBit, KuCoin’ Nigerian crypto users
Be careful using Binance & Centralized Exchange
Sanctioned Services and the service traceability to this forum, Any danger?
Recent events should make everyone withdraw all their coins to their own wallets: Part 1
Recent events should make you withdraw all your coins to your own wallet: Part 2
Recent events should make you withdraw all your coins to your own wallet: Part 3
Get your coins out of custodial wallets now: Part 4

[Abiky]

Let's not hate the centralized exchanges, I'm sure that each of us have used them in the times that we actually need them the most especially during the bull runs for selling and for the time of accumulation.

Just like the crypto online casinos, they have also contributed a lot to the growth of Bitcoin and for this community. Without the earlier ones, the current popular ones won't be as popular as they are right now.

They played a role to become more acceptable and to make the government have more relaxed policies towards Bitcoin.

As much as we want to avoid centralized exchanges, we can't. Why? Because they serve as on/off ramps from the Fiat world to the crypto world. It's much easier to buy/sell crypto with Fiat on a centralized exchange, than on a P2P trading platform or even F2F (which is riskier). Privacy-oriented DEXs change the game to a whole new level, but they're far from being a perfect solution.

CEXs, although subject to the risks of a single point of failure, are widely approved by governments due to the way they're designed. They're regulatory-compliant, bringing the much needed legitimacy crypto needs in the mainstream world. Otherwise, crypto land would still be the "wild west". Just like in the early days. Institutional investors are now on-board, so we should expect a higher level of mainstream adoption for BTC in the long run.

[SilverCryptoBullet]

As much as we want to avoid centralized exchanges, we can't. Why? Because they serve as on/off ramps from the Fiat world to the crypto world. It's much easier to buy/sell crypto with Fiat on a centralized exchange, than on a P2P trading platform or even F2F (which is riskier). Privacy-oriented DEXs change the game to a whole new level, but they're far from being a perfect solution.

Centralized Exchanges provide best and highest trading volume for people who want to buy and sell bitcoin. There is also no risk to be scammed when people buy or sell on centralized exchanges, just set up their orders and wait for buyers or sellers to fill these orders.

With decentralized exchanges, people can be scammed by their trade partners or can lose money if they choose to trade with too small liquidity trading pools on some platforms. Centralized exchanges undoubtedly are usable for everyone with Decentralized exchanges require more knowledge and experience in this market before people can use them safely.

Privacy matters but safety of your money in very first experience is important too.