Can this resolve the KYC dangers? It's just a opinion

[Curious T]

But the exchange does verification sometimes, so if they have deleted the details, how will they be able to verify that the person trying to access the exchange is the person? Like when you're trying to log in with another device, some services require you to do KYC again if you don't have 2FA. So if they've deleted the details, how will they verify? Then there is the issue of reporting to the government. When they flag suspicious activity, how would you expect them and the government to trace the person if his details have been truly deleted? It is not in their best interests to delete the information they have taken during KYC, so they won't delete it.

[ZeroVinsonN]

Since KYC verification is now a big risk on Bitcoin and crypto investors can't they just pass the KYC and get rid of the information right after?

Do you think this will work? Instead of keeping customers information on the platform why not delete them all after the verification is passed?

the details can't just be deleted, for so many reasons, let's say you get logged out of a device or you want to change the your device the platform still have to refer back to your saved data, sometimes you need to pass some visual test. Also if you are making bank transactions using such platforms they require the name of your bank account to be similar to the name on the document you have sent before you passed the KYC so those details are important.

KYC is not a one time thing for them, they still need to regularly confirm that you their customer are the person still assessing their platform, it can't just be deleted because you passed it during registration.

I changed my device a while back and I wanted to restore my apps, those that required KYC had to be verified again against what was already in the system, if that initial information had been deleted from the system then it would have been impossible to prove that th account was mine. This also makes the whole conversation for KYC to no longer be a thing ineffective, how do you truly prove th account is yours if you device gets lost or stolen and you had to get a new one.
At the end of the day, no matter how good it might seem to put an end to KYC, we can not deny it's overall value.

[Lucius]

The only solution to avoid having your data hacked for anything related to cryptocurrencies is to avoid all services that require KYC. It may be easier said than done, but there are also decentralized crypto exchanges and many other services related to cryptocurrencies where you don't have to worry about your personal information because no one will ever ask you for it.

The real problem is that people blindly listen to the government and live in constant fear that they will be punished if they do not work strictly according to the rules. Maybe we should start worrying about ourselves, not about those who wear expensive suits and live in lavish palaces they built by hiding their wealth in tax havens.

[leea-1334]

Instead of keeping customers information on the platform why not delete them all after the verification is passed?

I believe this is the key difference in Europe with GDPR. If you request your data to be deleted it must be legally done but you also withdraw from the service.

But as others say,,, there is no guarantee this happens anyway, and governments themselves will exercise police powers to retain and even track your data. Trust me they do this. And exchanges will rather break their duty to you as a user than their reputation with the government.

[tbct_mt2]

The only solution to avoid having your data hacked for anything related to cryptocurrencies is to avoid all services that require KYC. It may be easier said than done, but there are also decentralized crypto exchanges and many other services related to cryptocurrencies where you don't have to worry about your personal information because no one will ever ask you for it.

The real problem is that people blindly listen to the government and live in constant fear that they will be punished if they do not work strictly according to the rules. Maybe we should start worrying about ourselves, not about those who wear expensive suits and live in lavish palaces they built by hiding their wealth in tax havens.

Avoid KYC is a most important thing for our practice but there are other things we need to do too.

Like don't use one email for all things because if the only email is hacked, we will lose many things, many accounts registered with that email. In contrast, if we use different emails for different accounts and different purposes, secure those emails with different passwords (need to be strong passwords), we will be able to avoid losing all with one security incident.

Security checklist.
Secure your exchange accounts.

[moneystery]

As soon as you give your personal data to the exchange, after that it's up to them to use that data for their purposes. You can't expect that after the verification process your data will be immediately deleted. The exchange still needs to keep that data to comply with regulators-- and to prevent you from using that same data to register again with that identity and commit fraud that could harm the exchange.
So anyone using an exchange or any platform that requires KYC has no choice but to trust that the platform can store and use their sensitive data wisely and securely. If you don't like it, then you can avoid using it.

[lovesmayfamilis]

Since KYC verification is now a big risk on Bitcoin and crypto investors can't they just pass the KYC and get rid of the information right after?

Do you think this will work? Instead of keeping customers information on the platform why not delete them all after the verification is passed?

I like your naivety, OP. You're probably very young or old not to know that everything that appears on the Internet stays there forever. Besides, why would the platform owners delete your information? By registering as a unique customer, you leave your digital footprint, which will then be easy enough for the site to track. I’ll go even further. that even without your documents, some platforms can clearly see information about your fingerprints and places of residence. But going through KYC should be a very alarming signal for you if you are a trusting person and you think that you have nothing to hide. Knowing as much information about you as possible, scammers can put you in very unpleasant and unexpected bad situations, which will make it very difficult for you to prove your innocence.

[348Judah]

Since KYC verification is now a big risk on Bitcoin and crypto investors can't they just pass the KYC and get rid of the information right after?

Do you think this will work? Instead of keeping customers information on the platform why not delete them all after the verification is passed?

How will they let go of customers information on their system since they have a central server that hold all these user information for them, the ensure keeping the kyc information from many reasons such as customer hacks, verification process that may be needed to ensure the user only have an access to an account with them without any third party taking control, they also need to know more about the customer the taking on board on their platform so as to use the information in tracking some of their specific target concerning their users, there is still more to this that surrounds the use of a centralized platform and why the always ensure the keep up with their kyc information.

[Dr.Bitcoin_Strange]

Once your personal information has been given out, it is not 100% safe, just as someone already mentioned, anything you put out online might never be completely deleted, so even if this your idea was employed it won't solve the problem completely, and because these platforms have the high authorities that they answer to which must have also asked them to demand for KYC, they won't stop asking for it, the best solution is to avoid using KYC platforms, only use decentralized platforms that doesn't ask for your information.

[o48o]

Since KYC verification is now a big risk on Bitcoin and crypto investors can't they just pass the KYC and get rid of the information right after?

Do you think this will work? Instead of keeping customers information on the platform why not delete them all after the verification is passed?

Because they legally need to keep records. Why those records stored to database that's accessible via internet in the first place is a better question. And at least people in EU have legal right to get every data that any site has collected about them, and those can even be requested as A4 paper printed format.

But the answer is because it's convenient and cheaper then an offline storage. Even though crypto companies that require KYC understand the risks of hacks so well that majority of their crypto wallets are cold wallets.

[ColdLava40]

Since KYC verification is now a big risk on Bitcoin and crypto investors can't they just pass the KYC and get rid of the information right after?

Do you think this will work? Instead of keeping customers information on the platform why not delete them all after the verification is passed?

That's funny, but I think I understand where the confusion is come from.

The kyc is not just to know your customer, it's also to have enough information about them for future references. Beside, it's not possible to delete your data once it's uploaded to the internet.

Don't let any site fool you when they claim to have deleted your record, it's all a lie to make you feel comfortable. Nothing gets deleted from the internet, it's there but just not accessible to you anymore.

They will never delete your data completely from their data base. And don't for once think deleting it will save you from attackers. There is always a way to restore those data from their data base, it's just a work around for hackers.

[BABY SHOES]

That we live a world full of rules... the government regulates it.

Most exchanges store customers ' personal information in a third party, you can forcibly delete your KYC data there, the third party already has a rule with the government that any data should not be deleted.

If the government needs it, they will be very easy to find out... So it will not be that easy after successful verification want to delete data, the platform must be subject to a rule.!

[Ambatman]

What you speaking about is quite similar to ZKPs
Which can help verify a claim with privacy in mind.
But exchanges that accept or engage in AML or KYC are expected to retain data.
Even in the US for example after an account is deleted the exchange are expected to keep the information for five years.
The lower the number of information you share online
The lower the likelihood of falling in to a data breach.

[coinlary]

It is   not really that easy.

Yes, it is possible, but no one can really tell if these people are actually going to get rid of such data.

If I told you to submit your identity infos to me and that I would delete it immediately after we're done with the necessary verification. If I want to be shady, I will log that data regardless of what the law and our agreement say.

I can decide to sell it later, even if it makes me a criminal under the law. I can keep it on my server and eventually tell you there was a data breach in the future. Again, it's a crime if the law says so, but who suffers the damage?

How are you going to tell that it was me if there's no trace leading back to me in some cases ?

That's what I see about giving out your kyc and expecting it to be deleted after-

[Cookdata]

This is just the truth, no data is ever deleted, A good example is Trezor and ShipMonk, for years Trezor was fed with guarantees that the user data were deleted, but it turned out they retained the data all through from the onset of their partnership. Even if you delete a data from the client-side of a platform, the data isn't truly deleted, but archived somewhere in the same or a separate database.

As long as your KYC has been given out, there is an equal possibility it gets leaked out. The only time it is safe is if it wasn't given out in the first place.

Trusting companies these days is like entrusting a nice meal to an untrained dog, if you look away they are going to eat it. For years, I have trolled Legder for their repeated hack. Until shipmonk disappointed them and the data leak was more than what was even reported. Till now, there is no official statement about what happened afterwards after they made announcement for people to be careful of scammers using such details to scam, the scammers did immediately they had access to the info's.

You clearly don't understand how it works, regulators are looking for proof that the client really completed KYC, and that proof has to stay in the platform's server or with a third party if they are connected to them.

It's part of compliance and they may need to show it once regulators audit them, so if they just delete it they are putting their business at risk.

Let's be honest with ourselves. Most of the companies that ask for kyc mostly do as pre measure in case if the regulators ask. They don't use it for anything important as part of their company. It's either they sell it or keep it there waiting for who need it to break into their company and take it. If the government begin to fine companies for the data protection, I don't think most of these companies will be operational, most of them are not compliance themselves.

[MarryWithBTC]

Since KYC verification is now a big risk on Bitcoin and crypto investors can't they just pass the KYC and get rid of the information right after?

Do you think this will work? Instead of keeping customers information on the platform why not delete them all after the verification is passed?

Lolz...

What do you think is the primary aim of conducting KYC? To check if you are a human or a bot? lol...

If your data is deleted after passing KYC, then you commit a crime or launder money through an exchange or casino and the authorities want to apprehend you and no more data, what then is the essence of KYC?

KYC is not to check if you are a human;

It is not to prevent abuse by a way of multi accounting;

The main essence is to have your data, monitor, sensor and control your data anytime, anyway.

So, the best way to improve KYC is not performing KYC.

[RGBTC]

Do you think this will work? Instead of keeping customers information on the platform why not delete them all after the verification is passed?

Coincidentally, I had a relevant experience recently. I was asked to re-verify my face by one of the exchanges that I had left for a long time since bitcoin fell below $90k (still had a few hundred dollars there). I used my face to immediately verify and it always failed 10x (2 trial sessions each 30 minutes apart), until I remembered that I used my partner's identity to complete KYC. After I asked it to reverify, it passed on the first try. From this story, you'll understand why they will not burn your identity from their records.

[Questat]

The problem is that we are no longer in the early stage, before we really liked to use non-KYC exchanges or decentralized exchanges because we could keep our identity private, but honestly look at them now, in terms of volume where are they ranked?

I will use myself as a case study in this. I liked to use decentralized exchange but when I crosscheck the two, the in the p2p is very low in decentralized exchanges while it is high in the centralized system. Exactly if centralized exchanges are buying BTC with $83,896, decentralized exchanges would be buying with $76,890. This is just an example not a real figure and when I looked at it, I was at the losing side of the p2p, in that case, I have to chose Centralized Exchanges.

That's the kind of sacrifice we will be facing if we use a decentralized exchange, because the price can be cheaper compared to the standard price centralized exchanges are giving.

We want no KYC, but then we may sell at a discounted price and buy at a higher price. So the question is, do we really like that trade-off?

And I believed 99% are not using decentralized exchanges because of this p2p rating and since the users are not much base on their rate the competition rating became low. And if today decentralized exchanges increase their p2p high, and comes here to advertise their services. Guy I will be the first person to use it. I can't lose up to $10+ because of KYC. If open source wallets developers can integrate p2p, it will be a good development.

But its not gonna happen, first reason is because people don't trust them anymore. So how can they get enough volume if traders are not willing to use them in the first place?

[Darker45]

There won't be any risk if these "Bitcoin and crypto investors" don't keep their funds in centralized custodians.

So, to eliminate the risk, you don't ask centralized services to get rid of personal information. They need to keep them. The solution would be not to share it in the first place. And the only way not to be required to submit personal information is to self-custody.

Once you share personal information, it won't get deleted even if you ask them to. The law itself requires centralized services to keep them.

[NotATether]

The solution is to use BitMixList to find swap services which won't ask for KYC.

It should be obvious by now...