Topic: A honest question about non kyc exchange (Read 367 times)
That is not how exchange works. Even if the exchange is a Non KYC exchange, as long as it is a centralized exchange, it will be holding your funds and you will have no access to your private keys (keys to the address that you make the deposit. Those address belongs to the exchanges. The funds don't stay on those address). Based on current laws, I doubt any exchange can provide services without making their customers go through KYC. If they are doing so, they are most likely running an illegal business without any registration or license. Wouldn't be surprise if it is done by few people from the basement. And the risk on using those exchanges are high. If they scam you, there is no one you can go after. If you are concerned about privacy, stick with decentralized exchanges.
Asking for KYC issue on CEX, that would be hard to judge. CEX KYC issue would be case by case, country by country issue
For sure, in USA, or Europe, there is no way for a legal CEX to be non KYC. However, there are hundreds of countries on earth. There could be some island
countries that perfectly legally provide non-KYC CEX on its own country law, why not?
DEX has nothing to do with KYC, because it only relates to the risks to the exchange organizer and third parties.
The essence of DEX is that no user assets are collected in one place or they don't store user funds, so DEX won't provide privkeys because there is nothing for user to withdraw. KYC is just a complementary policy of all types of exchanges including DEX. We know that the top exchanges today once operated without asking users to pass KYC. On the contrary, DEX can implement KYC policies at any time for various reasons such as sudden government intervention by simply changing some interface structures.
For sure, in USA, or Europe, there is no way for a legal CEX to be non KYC. However, there are hundreds of countries on earth. There could be some island
countries that perfectly legally provide non-KYC CEX on its own country law, why not?
Those DEX who ask for KYC are really CEX or fake decentralized exchange, they are just fake DEX pretending to be DEX.
If CEX doesn't ask for KYC, does it mean it is a fake CEX?DEX has nothing to do with KYC, because it only relates to the risks to the exchange organizer and third parties.
The essence of DEX is that no user assets are collected in one place or they don't store user funds, so DEX won't provide privkeys because there is nothing for user to withdraw. KYC is just a complementary policy of all types of exchanges including DEX. We know that the top exchanges today once operated without asking users to pass KYC. On the contrary, DEX can implement KYC policies at any time for various reasons such as sudden government intervention by simply changing some interface structures.
Those DEX who ask for KYC are really CEX or fake decentralized exchange, they are just fake DEX pretending to be DEX.
If CEX doesn't ask for KYC, does it mean it is a fake CEX?DEX has nothing to do with KYC, because it only relates to the risks to the exchange organizer and third parties.
The essence of DEX is that no user assets are collected in one place or they don't store user funds, so DEX won't provide privkeys because there is nothing for user to withdraw. KYC is just a complementary policy of all types of exchanges including DEX. We know that the top exchanges today once operated without asking users to pass KYC. On the contrary, DEX can implement KYC policies at any time for various reasons such as sudden government intervention by simply changing some interface structures.
Non-KYC doesn't automatically mean non-custodial. Neither does it automatically mean decentralized. In which case, it is possible for exchanges to be non-KYC yet custodial and centralized. Such exchanges don't provide you with private keys and when they shut down, you can't get your funds out.
Tradeogre, for example, or Crypton Exchange have strict non-KYC policies and yet they are custodial. So while your privacy is protected, your funds aren't.
Tradeogre, for example, or Crypton Exchange have strict non-KYC policies and yet they are custodial. So while your privacy is protected, your funds aren't.
Actually genuine DEXs are typically open-source software platforms that anyone can interact with directly without KYC. Examples like Uniswap, Thorchain, and AtomicDEX (by Komodo) fits in this.
Those DEX who ask for KYC are really CEX or fake decentralized exchange, they are just fake DEX pretending to be DEX.
true decentralized exchanges like Thorchain, uniswap, Komodo Wallet/AtomicDEX are just open sourced software. They are just software (source code open) that you download and run. The private keys are controled by user. DEX can not require KYC because they are just software.
Also in my opinion, DEX has to be on open sourced software. A hidden software behind "claimed DEX" probably are fake DEX because who knows what or who control or leak the private keys.
DEXes still don't ask for kyc, do they? I haven't come across any that require KYC at least. CEXes have got no way except to comply with regulations to continue functioning.
Regarding bold part, which?
Hi, you are correct!
Most DEXes don't require KYC because they operate without a central authority and allow peer-to-peer trading directly from your wallet.
But for CEXes, it is do need to comply with regulations and KYC.
true decentralized exchanges like Thorchain, uniswap, Komodo Wallet/AtomicDEX are just open sourced software. They are just software (source code open) that you download and run. The private keys are controled by user. DEX can not require KYC because they are just software.
Also in my opinion, DEX has to be on open sourced software. A hidden software behind "claimed DEX" probably are fake DEX because who knows what or who control or leak the private keys.
ForkDelta was one of the DEX that gave you a private key back then but shut down long ago. Sure thing as its how it works you can import the wallet when you have a private key.
I'm not sure if there is something like this still. The majority of the exchanges today already ask us to comply and send our KYC documents. There is no escape unless you go to the old exchanges that still are pretty much defiant, I still see one, and very much active today..
I'm not sure if there is something like this still. The majority of the exchanges today already ask us to comply and send our KYC documents. There is no escape unless you go to the old exchanges that still are pretty much defiant, I still see one, and very much active today..
DEXes still don't ask for kyc, do they? I haven't come across any that require KYC at least. CEXes have got no way except to comply with regulations to continue functioning.
Regarding bold part, which?
Hi, you are correct!
Most DEXes don't require KYC because they operate without a central authority and allow peer-to-peer trading directly from your wallet.
But for CEXes, it is do need to comply with regulations and KYC.
DEXes still don't ask for kyc, do they? I haven't come across any that require KYC at least. CEXes have got no way except to comply with regulations to continue functioning.
Once a DEX is requiring for a KYC then it is no longer Decentralized again but a centralized exchange, I have come across many exchanges in the past that were not KYC must exchanges and many treated them as on but as time goes on they switch to partial KYC and then to Full KYC example of this exchange I can remember is the KuCoin and OKX exchange is later switch, so if they actually ask for KYC they seize to be decentralized again and that’s why you see Kycnot.me actually delisting some of them from its platforms.
Regarding bold part, which?
I think he meant decentralized exchanges that do have their own personal wallet with seed phrase and an example is BISQ exchange. This is common now with even centralized exchanges having their own wallet with seed phrases and private keys giving out
ForkDelta was one of the DEX that gave you a private key back then but shut down long ago. Sure thing as its how it works you can import the wallet when you have a private key.
I'm not sure if there is something like this still. The majority of the exchanges today already ask us to comply and send our KYC documents. There is no escape unless you go to the old exchanges that still are pretty much defiant, I still see one, and very much active today..
I'm not sure if there is something like this still. The majority of the exchanges today already ask us to comply and send our KYC documents. There is no escape unless you go to the old exchanges that still are pretty much defiant, I still see one, and very much active today..
DEXes still don't ask for kyc, do they? I haven't come across any that require KYC at least. CEXes have got no way except to comply with regulations to continue functioning.
Regarding bold part, which?
Hi, you are correct!
Most DEXes don't require KYC because they operate without a central authority and allow peer-to-peer trading directly from your wallet.
But for CEXes, it is do need to comply with regulations and KYC.
ForkDelta was one of the DEX that gave you a private key back then but shut down long ago. Sure thing as its how it works you can import the wallet when you have a private key.
I'm not sure if there is something like this still. The majority of the exchanges today already ask us to comply and send our KYC documents. There is no escape unless you go to the old exchanges that still are pretty much defiant, I still see one, and very much active today..
I'm not sure if there is something like this still. The majority of the exchanges today already ask us to comply and send our KYC documents. There is no escape unless you go to the old exchanges that still are pretty much defiant, I still see one, and very much active today..
DEXes still don't ask for kyc, do they? I haven't come across any that require KYC at least. CEXes have got no way except to comply with regulations to continue functioning.
Regarding bold part, which?
ForkDelta was one of the DEX that gave you a private key back then but shut down long ago. Sure thing as its how it works you can import the wallet when you have a private key.
I'm not sure if there is something like this still. The majority of the exchanges today already ask us to comply and send our KYC documents. There is no escape unless you go to the old exchanges that still are pretty much defiant, I still see one, and very much active today.
[...]
Using Non KYC exchange is quite ambiguous.All Non KYC exchange are CEX but not all CEX are non KYC exchange.
There is nothing ambiguous there, where is the ambiguity?
I can agree that not all CEXs are Non KYC exchanges, but not all Non KYC exchanges are CEXs. DEX is also included in exchanges, right? there also supports exchange even without using identity (KYC). I also think the OP has got the answer he was looking for, this thread should be locked as soon as possible by the OP.
Binance and Kucoin used to be non-kyc exchange and yet, they're centralized. But eventually, they have enforced everyone to comply for kyc because of regulatory pressures.
Decentralized exchanges don't give you keys because you'll have to connect the wallet that you have on it for easy example, metamask.
And not all decentralized exchanges are non-kyc, I think there were some special case in the past that a known decentralized exchange turned into semi-centralized and asked its users to comply. I forgot the name of that but that was a big decentralized exchange around 2016-2017.
Decentralized exchanges don't give you keys because you'll have to connect the wallet that you have on it for easy example, metamask.
And not all decentralized exchanges are non-kyc, I think there were some special case in the past that a known decentralized exchange turned into semi-centralized and asked its users to comply. I forgot the name of that but that was a big decentralized exchange around 2016-2017.
I'm just trying to clear my doubts here so please if you won't help with a good reply just don't.. thanks
@Hatchy, I think its good that you ask these questions and that you want to clarify your doubts, but honestly, why did you try to answer a question about something you dont really know about?
You seem to be confusing some terms here. And, as many members have already explained, I hope you now understand that non-KYC has nothing to do with decentralization. Exchanges can be centralized (CEXs) or decentralized (DEXs). Its more about how they work technically and their software. And yes, you are right when you say that most centralized exchanges require KYC from their clients due to regulations and laws. But thats not always true. There are still some non-KYC centralized exchanges, or for example, they may require KYC only after you hit a certain amount and so on. But again, this has nothing to do with decentralized exchanges.
So my question here is that, will you be given private keys to your wallet in a non kyc exchange? And if yes, will I be able to import those keys into a standard wallets. In case where the exchange has issues or shut down? I'm just trying to clear my doubts here so please if you won't help with a good reply just don't.. thanks
It's good to always ask question in areas where you are finding it difficult to understand, and I'm happy you did, as it is our duty as a community to enlightened each other. So on that note, I will like to clarify the fact that on Non-KYC exchanges, users aren't given anything such as private keys for inbuilt wallet, as wallets found in Non-Kyc exchange are usually not independent of its own, but controlled by the exchange, which is why when an issue is been reported to customer care, they tend to be able to resolve it, simply because they have full control over funds kept in such exchange. So, in other to summarize it all, if funds is lost in a Non-Kyc exchange or the exchange seems to shut down, whatever funds that is in it can never be recovered via third party, unlike funds stored in Non-custodial Bitcoin wallet.
All Non KYC exchange are CEX but not all CEX are non KYC exchange.
This is incorrect. There are decentralized, non KYC exchanges as there are centralized ones.Exchanges can be a combination of many different features; decentralized, open source,KYC free and P2P. They can also operate at different levels of the features, we have exchanges more decentralized than others and centralized ones that claim to be P2P, while they act as the third party controlling the transaction.
The only way to know if the exchange is completely decentralized is they give you the seed phrase or private key.
If you own a seed phrase/PVK, it's non-custodial rather than decentralized.
Decentralized implies there is no central authority in control, trades happen between two parties, settled by smart contracts, smart contracts that live on blockchain, a blockchain that's distributed across validators worldwide and this makes it hard to take down a blockchain.
User funds are held by these smart contracts, if by whatever reason dex frontend is taken down, one can withdraw funds by interacting with smart contracts.
I have done this a couple times myself, I remember recovering my funds vividly with Etherdelta smart contract when their frontend was down — a long forgotten ethereum dex but a revolutionary one.
yesterday, about the kyc and non kyc exchanges.
I used my own analogy to reply him because, if an exchange is non kyc, it means that they literally will be decentralized and they are not being controlled by the government or follow by government rules. While the opposite for a kyc exchange..
Your reply shows that you're confusing about decentralized exchanges and non-KYC exchanges.I used my own analogy to reply him because, if an exchange is non kyc, it means that they literally will be decentralized and they are not being controlled by the government or follow by government rules. While the opposite for a kyc exchange..
A non-KYC exchange is if it does not require KYC at any level to their customers, and that exchange can be a centralized exchange or a decentralized exchange.
The same is with a KYC exchange that can be either centralized or decentralized or a Peer-to-Peer (P2P) trading platform. If it requires KYC on customers, it's KYC exchange.
Don't confuse that a decentralized exchange will always be non-KYC. If that decentralized exchange's found and team members are public, not anon, governments can send request or arrest the founder, core team members, to force them doing KYC. Like France did with Pavel Durov, the founder of Telegram and about 1 month later, Telegram changed their Terms of Service a lot.
Telegram to Provide More User Data to Governments After CEO’s Arrest.
Let me explain it the best I understand, Bisq is non-kyc and also a decentralized exchange. Peach Bitcoin is a non-KYC P2P platform for buying and sell Bitcoin. Although Peach Bitcoin may be decentralized, it can't be compared with Bisq in terms of its Decentralized Autonomous Organization(DAO) and trading of not only Bitcoin but other crypto excluding the other notable features.
Your question has already been answered.
KYC isn't a measure in knowing if an exchange is decentralized or not.
When I was using kucoin then, I created without any KYC despite been Centralized it didn't require KYC.
KYC started gaining fame of recent and most CEX if not all has transitioned that many now believes only CEX are engaged in KYC.
Decentralized and CEX are about who owns the Key while KYC and Non KYC are about your privacy.
All Non KYC exchange are CEX but not all CEX are non KYC exchange.
KYC isn't a measure in knowing if an exchange is decentralized or not.
When I was using kucoin then, I created without any KYC despite been Centralized it didn't require KYC.
KYC started gaining fame of recent and most CEX if not all has transitioned that many now believes only CEX are engaged in KYC.
Decentralized and CEX are about who owns the Key while KYC and Non KYC are about your privacy.
Non KYC exchange is different from a decentralized exchange, when you register on a Non KYC exchange, you don't have access to your keys at all, it is the same thing as CEX. This is different from decentralized exchanges, you are required to have your own wallet before you interact there, which means you will own and have full control over your keys.
Using Non KYC exchange is quite ambiguous.All Non KYC exchange are CEX but not all CEX are non KYC exchange.
[...] as you can see above. I used the word MIGHT as I wasn't totally sure of something i havent tried before. So my question here is that, will you be given private keys to your wallet in a non kyc exchange? And if yes, will I be able to import those keys into a standard wallets. In case where the exchange has issues or shut down? I'm just trying to clear my doubts here so please if you won't help with a good reply just don't.. thanks
Non KYC exchange is different from a decentralized exchange, when you register on a Non KYC exchange, you don't have access to your keys at all, it is the same thing as CEX. This is different from decentralized exchanges, you are required to have your own wallet before you interact there, which means you will own and have full control over your keys.
Jump to: