Topic: Anonymity vs. KYC: The Pros and Cons of Cryptocurrency Exchanges - page 3. (Read 788 times)

That's what sites that ask their customers to do KYC have to do by being able to keep their customer's confidential identity data in a different place from their site so that if something happens to their site, the data is still safe there. And the big sites have implemented it, but maybe not all of them are aware of it, so we still hear news about hacking a site. And it should be if the exchange site can continue to improve its service to its customers so that the site can gain the trust of its customers. And its customers also rest easy as long as they use the exchange site for trading and other things.

Except they do. Every major centralized exchange has leaked customer data. Binance has been hacked for customer data. Coinbase admitted they sold customer data to third party without customer's knowledge or consent. Bitfinex, Bittrex, Kraken, you name an exchange, it's leaked user data.

Just means that if their third party KYC processor is hacked, then your data is stolen that way instead. And we've seen time and again that most centralized exchanges are very lackluster when it comes to the security of their users' data. They simply do not care about your data or your safety, and are unwilling to spend any real money to make the process safer.

The only safe KYC is no KYC.

It's not only about the potential abuse on why people avoid KYC but it's also because KYC is too hassle to do and then it invades ones privacy. We can't control the rise of the KYC on many websites but luckily there are still sites who don't comply with it. We can always choose to use those sites.

As long as the website is legit and you are willing to hand out your KYC, then you shall not worry because they won't likely leak you data to other companies that they know. It will be better if they store the KYC away from their server so that once their site got hacked, the users KYC's are still safe. Along with that is they must tighten their security so that hackers won't have the chance to access them.

It's sad that people are so easily ready to give up their freedom in exchange for convenience. If a person chooses food between freedom and food, then he will lose everything over time, including food. It's a pity that many do not think about it.

I am used to with KYC on all cryptocurrencies exchange market and actually as arbitrage need higher withdrawing in daily day need to break KYC process, but for trader or user not agree with KYC have alternative and option with trading on exchange without have to pass KYC like Kucoin, MEXC and Hotbit.

But have little disadvantage with account without process KYC get limit withdrawing under 2 Bitcoin in daily day and if want withdraw higher amount need to upgrade by KYC processing. Binance have been adopted must KYC and not available withdrawing or trading if not pass KYC or upload document needed.

In many cases of customer identity abuse, we try to avoid KYC on many websites. Still, we can't do it, especially now that more and more exchanges require their customers to do KYC. But we are still lucky because we can still find exchanges that do not require detailed KYC and can use those exchanges to trade as usual. Hopefully, those exchanges can maintain their customers' confidentiality by not abusing it for illegal things. Hopefully, the exchange won't let hackers try to take it from the exchange server database.

Biometric data and DNA? Well, I haven't thought that far and I don't think it's going to happen that way. Yes, things change all the time, and we need to adapt but I don't like holding headlights in front of cars. I will watch how the world changes, and I will adapt accordingly.

People are annoyed with the KYC of exchanges, but to speak more broadly about the outside world. When you use technological devices such as smartphones, social networks, and government services, our privacy has long been stolen, not only in this crypto market. Our world is still a centralized world, and the government is running it all, they know all we're doing, we couldn't be smarter than them.

This is true and on point!

When you do buy crypto - Neither p2p or using exchange or services that using up CC/Debit cards.
When you do withdraw crypto to fiat - You would be making use of exchange platform.

You could do all of these things when you are kyc-verified which means that you cant able to proceed if you aren't that verified.
If you are really just making it use for trading coins without pulling it off and making it a fiat then verification wont really be
that much needed.

Honestly, I prefer an exchange without KYC. So far an exchange have proof of reserve, Im okay with that. Do you know that some exchange will just terminate your account because of some unknown fanancial policy even after KYC?
I know many  Binance account termination victims even after thier so called third level verification. Now, After having all these people information, they terminate thier account. This means that all these information can be used for something else without the owners knowing. Since I know this, Ive switched to MEXC Global. Ive been trading, depositing and withdrawing without KYC for years and Ive never seen any kind of data breaches since it was founded in 2018 and there is proof of reserve. So, I just stay away from too much KYC these days.

There's no way on avoiding this considering that regulation do becomes strict specially on services and platforms which are involved or connected on cryptocurrency transactions specially on exchange platforms but somehow these kind of regulation does impose some security on users funds if ever these platforms do really make out some shady move.Yes, we arent that non knowledgeable when it comes on how DEX
works and yes its really something preferred if we do speak about total anonymity but since we are really that minding about having those fiat conversions then we wont really be having
no choice but to touch up these areas.

It may be news to you, but trading on the DEX does not require sending your funds to the exchange wallet or passing KYC.

And yet, if you ride a bicycle wearing a helmet and a truck runs over you, the helmet will not save you.

KYC is usually bad for cryptocurrency users. Yet things never turn out the way we want them to. The amount of regulation that centralized exchange must comply to is low. Users are forced to submit KYC because of exchange terms and conditions, although there are no benefits to doing so. A centralized exchange would request KYC whenever they felt like it. Don't feel completely comfortable since those don't currently require KYC.

It's like a game of chance, really. People are out here, willin to take on the unknown and untested by tradin on unverifid exchangis with no KYC. They assum that it's a good ideea to avoid givin out their persnal informashun, but hav they really thought it through? Wat if somethin goes rong, like some hacker decides to take a swing at their account and runs off with all their hard-earned cash? Without KYC, how will they prove ownershp of the account? It's a precarious balancing act, sure, but ya need to be smart and take the risk. It's like when ya ride a bike; ya may think helmets arent kool, but they're necessary to keep ya from gettin hurt. So, before ya sign up for that sketchy unverified exchange without KYC, take a minute and consider that enablin KYC is a constructive and creativ way to keep yourself safe from any security breaches.

Large or small companies, when we send our documents to them, we lose those things on Internet forever except if we can have a time traveling machine to correct our mistakes or past activities.

I don't know all companies and their data breaches in your list that is big but I am not surprised at all. They have lot of Terms in their Terms of Service that are set to protect their companies, not their customers.

Like all those data breaches, did any victim (among their customers) receive compensation from those companies? No, and worse, customer data were breached forever.

Change is inevitable, and it's no different in the world of cryptocurrency exchanges. With KYC becoming a necessary requirement for trading on most platforms, it's important to consider what the future may hold. As the need for security and safety increases, it's not hard to imagine that biometric data, including DNA, may be the next step in the evolution of exchange compliance. Are you prepared to adapt to these changing requirements?

Both CEX and DEX have their pros and cons, there is no winner when compared to each other. If you like privacy, don't want your identity to be sold on online websites, then DEX is the choice but DEX has a lot of limitations, if you are a trader, you make money trading, then you won't be able to do that with DEX. In contrast to CEX, they provide many services as well as convenience to use, but in return, we lose privacy, and we also do not have full control over our assets. I am a trader, so I still use CEX so far, I lost my privacy but in return, I feel satisfied with cex's services.

The concept of anonymity is good by not exposing our identity to many places, especially places controlled by the government. But unfortunately, the government itself wants to know who its citizens are, and they pressure a lot of business places to do KYC on those who come to these business places, especially for those who do business, so that the government can find out how much their profits are and the government can collect the taxes.

There has to be a desire to use the anonymity of everyone and turn around to pressure the government not to force KYC on everyone and let people choose what they want. But this is not easy because the government will not allow it.

Because you aren't supposed to deposit your money to an exchange at all. Proper DEXs let you trade peer to peer, and there are no centralized wallets in which to deposit your coins. Since the exchange never has control of your coins, there is no trust required. The fact that so many people think you must give up all control of your coins to a third party in order to trade them is a triumph of centralized exchange's marketing departments, but a complete falsehood. And I have no idea how anyone can seriously question how you can trust a proper DEX when literally no trust is required, while at the same time saying that CEXs are more trustworthy, despite the fact that dozens of CEXs have collapsed and gone bankrupt in the last few months because they were stealing/gambling/spending users' coins without their knowledge or consent.

CEXs are the least trustworthy platform in existence.

So you are willing to give up all your privacy, give up the security of your coins, risk your documents being sold on the dark web, risk your identity being stolen and being accused of money laundering and fraud, all because you can't be bothered to enable 2FA on your exchange account? Wow.

I get that our data could be hacked and be shared, and I am willing to take that risk. People think that KYC is just there for exchanges to comply with government requests and nothing more, which is very wrong.

KYC is there to protect you, in case someone tries to hack into your account, if you have KYC enabled that means you could provide proof that you are in fact you, whereas hackers won't be able to, because being able to hold a piece of paper that has that days date is not something they could replicate. Hence, having KYC, even with all the risks involved is still better for me and makes me feel a lot better about it in the long run.

Don't you think it is essential to preserve the user's freedom of choice, as it is the basis of individual freedom? By denying this fundamental right, we deprive ourselves of a part of our freedom that is already diminishing more and more.

If we continue to accept these restrictions on our freedom, it is highly likely that we will lose all the freedoms we had 10 to 30 years ago. We risk ending up under totalitarian control, where each of our movements will be monitored and controlled. Is this really what we want for our future and that of our children?

We ourselves have a share of responsibility in the establishment of this control. By choosing the easy path and accepting convenience at the expense of our freedom, we have allowed those in power to seize our most fundamental rights. We must be aware of this and take the necessary measures to restore our individual freedom.

Cryptocurrencies were supposed to be an alternative to state control, by offering anonymity and privacy protection. But we have abandoned this idea and turned to more practical solutions, without considering the long-term consequences.

It is time to wake up and fight for our individual freedom, by rejecting any form of government control and surveillance. We must reaffirm our right to privacy and freedom of choice, to preserve the democratic values that make our societies strong.