Topic: Anonymity vs. KYC: The Pros and Cons of Cryptocurrency Exchanges (Read 788 times)

Well, the normal thing is that those who are crypto, for nothing in the world we should accept that the conditions are to give kyc, be it for Casinos, for Exchanges, but it is as you say, the Government through the licenses and demands makes the sites have What to adopt the special permissions and for them to be able to enjoy it, you have to comply with the requirements of kyc, it is somewhat unfair, but for this the way out is to go towards decentralized exchanges and decentralized casinos, which obviously is not the same as a centralized casino or a centralized exchange, but so far that is what it is.

Cryptocurrency is a tool that primarily provides anonymity and freedom from totalitarian government control. If we undergo the KYC process, we lose this privilege and our cryptocurrency ceases to differ from regular fiat currency. In such a case, the question arises - why use cryptocurrency at all? If we allow the government to control our financial transactions, we lose our freedom of choice and risk falling under the influence of a totalitarian regime. Therefore, I am convinced that preserving anonymity and freedom in the use of cryptocurrency is its main advantage, and any measures aimed at controlling financial operations should be approached with caution.

the advantage is for the exchange to weed out bad people

Leaking of KYC is not the disadvantage of it, that is a hacking and you could get the whole hot wallet hacked too and your money would be stolen, that's not really a default state of it.

I believe that exchanges should always ask for KYC because it makes it that much more legal and that makes it that much better for governments to accept it as it is as well if you ask me.

...
However, if I take responsibility for the use of this financial instrument, then why would a third party require me to disclose confidential information? 

In my opinion, this requirement is illegal!

Doing KYC and not doing have advantage and disadvantage, the advantage is for the exchange to weed out bad people, knows who they are dealing with and help to fish out users from countries that have been sanction, that is the benefits of doing KYC to any exchange. The disadvantage here is that exchanges are known for non-transparency, they can do whatever please them with people information. I have read where Binance leaked users KYC on the internet that was trending for weeks, such things are the thing we fear of not repeating by other exchanges.

As I said I never pass KYC for crypto and still can find some ways of doing so even if when exchanging with fiat. (And there's no way of using Binance without passing KYC, and I don't use it.) Of course it is not as easy as if to trust every place asking KYC and which I'll hardly trust, but it is at least possible. Of course this makes me pass by some interesting proposals but I still don't pass KYC anyway. I wish it will be more options of direct bitcoin payments in the future as it will simplify most things.

Doing KYC and not doing have advantage and disadvantage, the advantage is for the exchange to weed out bad people, knows who they are dealing with and help to fish out users from countries that have been sanction, that is the benefits of doing KYC to any exchange. The disadvantage here is that exchanges are known for non-transparency, they can do whatever please them with people information. I have read where Binance leaked users KYC on the internet that was trending for weeks, such things are the thing we fear of not repeating by other exchanges.

Hey everyone, I wanted to start a discussion around the topic of anonymity and KYC (know your customer) requirements in cryptocurrency exchanges. As we all know, there are exchanges that require extensive KYC verification, while others operate with little to no verification process.

On one hand, KYC can help prevent fraud, money laundering, and other illegal activities. It can also provide a sense of security and transparency for users who want to know who they're trading with and ensure that their funds are safe.

However, KYC can also compromise anonymity and privacy, which are often highly valued by cryptocurrency users. Some argue that the need for KYC goes against the decentralized and borderless nature of cryptocurrencies, and can even put users at risk of data breaches and identity theft.

So, what are your thoughts on exchanges with and without KYC? Do you prefer exchanges with strict KYC requirements, or do you value anonymity and privacy more and prefer to use exchanges with little to no verification process? What are the disadvantages and advantages of each approach? And what measures do you take to ensure your anonymity when exchanging cryptocurrencies?

Let's have an open and respectful discussion around this topic and hear everyone's perspectives. Looking forward to your input!


List of KYC data breaches.

You could still make use of Binance but of course the limit wont really be that something that bad too if you are really just intending on trading up some assets from other coins which doesnt involved
some fiat conversion or withdrawals which is something that really requires kyc specially when you do make use of p2p.Same goes on other top exchange platforms which you would really be
still need to be verified if you do make use of this feature which does means that it is really  that inevitable if we do speak about kyc which i couldnt deny
that it is really that leaving you no choice specially when you are pulling away your funds.

And many like Binance then start requiring KYC for everything, and many even if don't ask KYC for every transaction have limits on transactions without KYC anyway. And that's why we expect DEX will develop as intensive as possible. As for me I never pass KYC in crypto so any type of KYC is unacceptable for me. If an exchange is requiring it just for fiat then okay, but more exchanges start asking it for everything and it is definitely not okay. Crypto should be free of KYC.

Many crypto exchanges require KYC only if a user needs to make transactions in fiat currencies. Where fiat deposits are involved, anonymity isn’t possible from the source of deposits (payment systems or bank cards).

There’s a lot of ways for them to get access on our personal details, some site are selling it on a black market and that’s normal nowadays, if you stay anonymous you should not open any account on any social media because there’s already an issue like this from them. Anyway, CEX are following the order from their regulations or else they will not be allowed to operate. The only problem here is that some CEX are not too honest about the safety of our details, especially what happened to FTX where KYC is required, for sure its also compromise.

FYI, I do not hold my coins on exchanges. When I need to buy or sell with my locals, I make a deposit there and do the trade. Still, we gave exchanges control over our coins. Sometimes when you reset your password or change your email, Exchanges disable withdrawals for 24 Hours for security reasons. But, I liked the idea, to be honest. This is not what we do every day. So, it won't harm. Unfortunately, we had to trust a third party here because of a fewer options available.
...

It is difficult to stay completely anonymous in the current generation where each and every device, app, website is tracking us in some way or the other.
There are people who prefer to stay anonymous and use anti-trackers to stay away from being tracked.
Talking about me, I try to stay as anonymous as possible if at some point I have to give up anonymity in order to get ease of access and convenience then I do give it up.
For example using binance to get access to a larger volume of coins for trading. I do give anonymity in such cases.

My suggestion is to implement a hybrid method (to a certain amount) to handle both the KYC and the Anonymity. If it KYC perspective, there will be a lot of advantages to users as well. it can stop third-party scams. Also, in order to enhance fund security, maybe it's time to introduce a Know Your Exchange mechanism which provides information like reserves, liabilities, etc. of an exchange.

It is difficult to stay completely anonymous in the current generation where each and every device, app, website is tracking us in some way or the other.
There are people who prefer to stay anonymous and use anti-trackers to stay away from being tracked.
Talking about me, I try to stay as anonymous as possible if at some point I have to give up anonymity in order to get ease of access and convenience then I do give it up.
For example using binance to get access to a larger volume of coins for trading. I do give anonymity in such cases.

Hey everyone, I wanted to start a discussion around the topic of anonymity and KYC (know your customer) requirements in cryptocurrency exchanges. As we all know, there are exchanges that require extensive KYC verification, while others operate with little to no verification process.

On one hand, KYC can help prevent fraud, money laundering, and other illegal activities. It can also provide a sense of security and transparency for users who want to know who they're trading with and ensure that their funds are safe.

However, KYC can also compromise anonymity and privacy, which are often highly valued by cryptocurrency users. Some argue that the need for KYC goes against the decentralized and borderless nature of cryptocurrencies, and can even put users at risk of data breaches and identity theft.

So, what are your thoughts on exchanges with and without KYC? Do you prefer exchanges with strict KYC requirements, or do you value anonymity and privacy more and prefer to use exchanges with little to no verification process? What are the disadvantages and advantages of each approach? And what measures do you take to ensure your anonymity when exchanging cryptocurrencies?

Let's have an open and respectful discussion around this topic and hear everyone's perspectives. Looking forward to your input!


List of KYC data breaches.