If KYC stays many lives will be lost in the future

[Moreno233]

I'm happy to see someone finally standing up for privacy. The rate at which KYC data are being requested makes me scared. Perhaps that is the origin of the data leaks that is being used to target people and sometimes attack them physically as has been reported in many countries. Most KYC data usually end in the hands of people that use them for the wrong reasons. I remember receiving several text messages from unknown numbers and promotions and all sort of things, some of them are clearly scam. I knew it would have started from giving out biodata information in some platforms and applications.

[whoismeanyway]

can you suggest a legit NON KYC platform like NOONES ?

[ZAINmalik75]

Is only bringing it up enough though? I mean, we might be happy that someone has finally said it, but it would only be an actual thing to be happy about if they do something about it, but as we all know, regulators are the ones who ask centralized and regulated platforms for users' data, and that data will surely include their KYC information along with their financial statistics. They are surely not going to stop doing that, because they won't be able to tax people without it, and I don't see any possible workaround for it so that people don't need to do KYC on these platforms.

So, we should enjoy only if they finally pass a bill or make an official announcement about not making KYC mandatory or something, or at least find a way to reserve data in a way that hackers and attackers shouldn't be able to access them. For now, all centralized and regulated platforms are still strictly following the AML and KYC rules that are imposed by the same authorities and commissions who are saying such things for God knows what purpose.

[Joy- maker]

This collection of people's information is not longer safe, scammers are now hacking into platforms to steal high profile datas and use it to scam people. So, I support what the commissioner is proposing, platforms should stop doing KYC because if people's data is leak it will not only endanger the affected individuals, but also exposed them to identity theft, financial fraud and other of cybercrime. People's privacy and security should come firs, yesterday I came across a thread saying that a company that issues licenses to casinos and gambling platforms detected an authorize access to its platform.

[coinlary]

Just because you want to buy some Bitcoin no exchange should be asking you for your home address or any documents that has your home address on it.

Not sure Centralized exchange do that immediately, but they can definitely request  such when you run into some complications that eventually gets your fund /account frozen.
I remember a service requested me to describe the route to my current location after I topped up to use their dollar card    .

That's probably the  worst have seen so far  .

The Government ID already has as much as possible information that can put someone at risk anyway even if an account never run into any issue.

Apologies ButterZone

[Lontor]

I'm happy to see someone finally standing up for privacy. The rate at which KYC data are being requested makes me scared. Perhaps that is the origin of the data leaks that is being used to target people and sometimes attack them physically as has been reported in many countries. Most KYC data usually end in the hands of people that use them for the wrong reasons. I remember receiving several text messages from unknown numbers and promotions and all sort of things, some of them are clearly scam. I knew it would have started from giving out biodata information in some platforms and applications.

I am scared as well.
If they can't protect users data they shouldn't ask for it.

It's just that the world have turned upside down, if not, whenever users data got breached they are to be sued and charged, this is what I expects, any platforms that somehow let their users data to get leaked should face a big consequences.

They are getting away with it like it's nothing, just because it's not money that's been lost doesn't mean its something to toy with, this are people's lives at stake here.

If crypto exchanges can't 100% protects users data they should all scrap the idea of asking for KYC verification.

[Hazink]

They are ready and are actively collecting data from customers for purpose of tax and the so-called anti-money laundry protection, but they can't be good enough to protect the data from leaking, so it's better off limiting which documents they ask for just encase the data get leaked so that customers can be protected, or we should go with rules which anyone data that get leaked from the government hand or any central authority the people should be held responsible to answer for any damage that might cause.

[Audrey Simmons]

This collection of people's information is not longer safe, scammers are now hacking into platforms to steal high profile datas and use it to scam people. So, I support what the commissioner is proposing, platforms should stop doing KYC because if people's data is leak it will not only endanger the affected individuals, but also exposed them to identity theft, financial fraud and other of cybercrime.

Some attacks can be avoided, except when they make it a face-to-face attack, if your data is leaked, you are still in control of your assets, once you know the tricks and how to avoid them, your assets will be safe. The fact that our data can be leaked already exposes us to threats, which is against our privacy, so I support a good replacement for centralized exchanges.

I am scared as well.
If they can't protect users data they shouldn't ask for it.

We need a solution after identifying the problem. What is your solution?

[lionheart78]

The government are so busy on how they can milk money out of the masses and implement KYC without thinking about the harsher effect to people who undergo the process.  It is a relief that someone who is sitted in the government noticed this.  If they are incapable of safeguarding the data, I agree with one of the replies that they should not forcefully implement it.

It's funny when people evade KYC. These centralized institution freezes their account, but when a major breach of data happens, I can't see anyone from those who implement it being held responsible, at least in my country, since we have a massive breach of Data on voters' information and no news that the government pursues the people behind who is responsible for safeguarding that data.

[suzanne5223]

I think this is the first time I've seen someone from the SEC team say something so important for everyone in the crypto space, and I couldn't agree more with what he said due to how Centralized KYC databases are honeypots.
For the record, every major centralised exchange or service that stores full IDs, addresses, and transaction histories has become a single point of failure so far.
When a data breach occurs, the result isn't only phishing because crypto enthusiasts are on the radar of those targeted for physical attacks, and something need to be done to prevent phishing and physical attack of crypto investors.

[Dreadboost]

You can't say because you want to know who controls a Bitcoin address and not care about the dangers that comes with that.
Home invasion, Wrench attacks are growing up and it's looking like crypto chart 📈 ready to slowly keeps climbing.

The obvious difference between a business owner and the consumer. Most business owners don't care about the product they give to people. They care more about what they benefit from.

In the future hackers will prefer to look for data to go after people who holds Bitcoin,

It is happening already. Earlier this week, a casino licensing company was breached. The hackers targeted important information that the platform holds. More information regarding the news explained how that information involved KYC information gotten from casinos that work with them. If it has started happening with crypto casinos, exchanges will be next.

[uneng]

When a data breach occurs, the result isn't only phishing because crypto enthusiasts are on the radar of those targeted for physical attacks, and something need to be done to prevent phishing and physical attack of crypto investors.

Not only data breach, but there are people working there who intentionally sells sensitive data from the files to scammers and marketing companies and make huge money this way. And then we keep being bombarded by scammers through email and phone calls in a daily basis, uninterruptedly.

Curious how the government is so concerned about our safety when justifying the reason why KYC must exist, but when they are confronted by reality, they simply ignore it as if it was nothing important.

[TheUltraElite]

What is the alternative, stop using exchanges altogether?

That might be the case for those who are not selling BTC but only collecting it from sources other than trading. But eventually a time will come when they have to sell it as well.
But a no-KYC system may not be what the authorities want. They will not improve their security to keep this data safe but will also not take accountability when a leak happens.

Further, the fiat system have KYC in place and your data is most likely already floating in the internet open to everyone. If that includes your residence, then avoid showing your crypto holdings to anybody who is a friend or far family.

[MusaMohamed]

What is the alternative, stop using exchanges altogether?

That might be the case for those who are not selling BTC but only collecting it from sources other than trading. But eventually a time will come when they have to sell it as well.
But a no-KYC system may not be what the authorities want. They will not improve their security to keep this data safe but will also not take accountability when a leak happens.

Further, the fiat system have KYC in place and your data is most likely already floating in the internet open to everyone. If that includes your residence, then avoid showing your crypto holdings to anybody who is a friend or far family.

Governments don't want no-KYC systems because they can not have necessary data to know trade histories of citizens.

About trades, there are always two sides, buying and selling, and between them selling is more challenging. Governments mostly don't care what you spent your money for, and how, after you already paid tax, however it's very different with your selling.

They will question about what you sold, how you sold, where you sold, and which source of money you received in bank accounts, then they want to know many things for taxing you.

Buying is for selling later, and it's the same with no-KYC buying, we will have to think about no-KYC selling and what we will do with government and tax.

[Lontor]

When a data breach occurs, the result isn't only phishing because crypto enthusiasts are on the radar of those targeted for physical attacks, and something need to be done to prevent phishing and physical attack of crypto investors.

Not only data breach, but there are people working there who intentionally sells sensitive data from the files to scammers and marketing companies and make huge money this way. And then we keep being bombarded by scammers through email and phone calls in a daily basis, uninterruptedly.

Curious how the government is so concerned about our safety when justifying the reason why KYC must exist, but when they are confronted by reality, they simply ignore it as if it was nothing important.

This is also a valid point, there are many businesses in my country where the workers drained the company's fund slowly and unsuspecting until it was too late for the owner, I can't count how many times this similar thing has happened.

You can't always trust your workers, people you employed, they accept to work to get paid, but don't forget that they have different motives too because they are humans.

It's very possible to steal people's data as a worker in Binance exchange and sell it to criminals outside, It is obvious that allowing people to do your jobs for you puts you in danger more than you getting it done, this is why people need to stop trusting Centralised companies.

[MainIbem]

What is the alternative, stop using exchanges altogether?

That might be the case for those who are not selling BTC but only collecting it from sources other than trading. But eventually a time will come when they have to sell it as well.
But a no-KYC system may not be what the authorities want. They will not improve their security to keep this data safe but will also not take accountability when a leak happens.

Further, the fiat system have KYC in place and your data is most likely already floating in the internet open to everyone. If that includes your residence, then avoid showing your crypto holdings to anybody who is a friend or far family.

Governments don't want no-KYC systems because they can not have necessary data to know trade histories of citizens.

About trades, there are always two sides, buying and selling, and between them selling is more challenging. Governments mostly don't care what you spent your money for, and how, after you already paid tax, however it's very different with your selling.

They will question about what you sold, how you sold, where you sold, and which source of money you received in bank accounts, then they want to know many things for taxing you.

Buying is for selling later, and it's the same with no-KYC buying, we will have to think about no-KYC selling and what we will do with government and tax.

The truth is that the government can never support a No-KYC system because that's the only way they can be in control and continue implementing their policies, and when there's a reason to question your source of income you'll always have to answer it whether you pay your tax or not, especially when the inflow from your exchange to bank is a very huge one. So the escape route is transacting within Bitcoin for instance using crypto card or onchain transactions and not exchanging it for fiat through P2P market in exchanges. Telling the  government to ban KYC is like asking them to stop their means of collecting taxes through exchanges.

[Felicity_Tide]

The government are so busy on how they can milk money out of the masses and implement KYC without thinking about the harsher effect to people who undergo the process.  It is a relief that someone who is sitted in the government noticed this.  If they are incapable of safeguarding the data, I agree with one of the replies that they should not forcefully implement it.

Are you not actually surprised that a person in government would say such a thing?.
I was surprised at first, not until I saw rumors that she would be resigning on October 2nd, which is about few days from today. Turns out that those in government clearly know what they're doing, but I guess they have to do their Job anyways... defending and sticking to every protocol.

It's funny when people evade KYC. These centralized institution freezes their account, but when a major breach of data happens, I can't see anyone from those who implement it being held responsible, at least in my country, since we have a massive breach of Data on voters' information and no news that the government pursues the people behind who is responsible for safeguarding that data.

It has always been a one-way system, where central authorities get to get away with their bullshit.
Revolut was the latest company to carelessly give out thousands of customers data to scammers and it's already looking like nothing ever happened... I can't even imagine other cases that weren't even disclosed to the public.

[CryptopreneurBrainboss]

God bless Hester Peirce for even bringing this up, something that random people have been talking for few years now.
That KYC verification must go, enough is enough.

Alcohol, Sugar, Fat etc aren't good for our health but will they stop being pushed on our face by the biggest companies in the world with support of the government? No instead they keep funding new branches and companies to sell more.

The world leaders making the calls doesn't care about us and that's how it has always been so it doesn't matter how bad KYC are but they won't discontinue it instead they'll keep enforcing it more because the KYC gives them control as they know who is who without caring if our safety is the price here.

The only way to avoid being a victim is making use of only DEX and Non custodial wallets. Participate more in P2P trading because our identity are being put at risk on this CEX. We can't fight them (the exchanges and government) while still patronizing them so we have to make them run out of business through boycotting them all, that's how we can get back our privacy.

[suzanne5223]

When a data breach occurs, the result isn't only phishing because crypto enthusiasts are on the radar of those targeted for physical attacks, and something need to be done to prevent phishing and physical attack of crypto investors.

Not only data breach, but there are people working there who intentionally sells sensitive data from the files to scammers and marketing companies and make huge money this way. And then we keep being bombarded by scammers through email and phone calls in a daily basis, uninterruptedly.

Curious how the government is so concerned about our safety when justifying the reason why KYC must exist, but when they are confronted by reality, they simply ignore it as if it was nothing important.

We heard about the cases of people who work in the KYC platform that does what you said but if we look into the definition of what data breach means according to Google "A data breach is a security incident where unauthorized people gain access to, steal, or expose private, sensitive, or confidential information."
We can still categorize what the person who work for the KYC firm does as data breach because in the end an unauthorized individuals have access to people private informations.

[puloweh555]

KYC needs to Go.....

When KYC was implemented, they said its purpose was to fight fraud and money laundering in crypto. But in reality, many criminals managed to get through KYC using fake identities or by exploiting already verified accounts, so until now this system hasn't fully stopped theft or money laundering as promised.

In fact, with the KYC system instead of stopping everything KYC has actually made things worse because gathering data creates new risks like personal data leaks, making phishing easier and even physical attacks by targeting individuals. So for me, what Hester Peirce warns about the dangers of KYC is very true and I support it.