Topic: Binance Singapore Blocks Withdrawals to Privacy-Focused Bitcoin Wallet (Read 164 times)
December 22, 2019, 06:20:46 PM
How would they know anything about the destination of the withdrawal and even more important, why would they care? They collect a fee from withdrawals so why does it matter to them where it goes?
December 22, 2019, 11:57:28 AM
So, this means Binance can detect coinjoin transactions as they please and block the user without giving proper explanation?
I understand this is for security but can't they at least let them withdraw and then block them for using the services before the issue is sorted? Things like this make smaller and scammy exchanges keep ripping off their users.
I understand this is for security but can't they at least let them withdraw and then block them for using the services before the issue is sorted? Things like this make smaller and scammy exchanges keep ripping off their users.
Most probably. Multiparties are almost like mixing the coins, receiving party does even know who send the coins and this could be considered by binance as the same thing with that of Catxolotl user. But I agree the coins must be returned back to the user at least or this will be used against everyone who send coins to any exchange who just want to do the exit scam. Centralize exchange wants transparency and they really will have to know where the coins are from. They are big surveillance system.
December 22, 2019, 10:47:40 AM
Bitcoin mixing is one of the headace for regulators so they will impose restrictions on exchanges like binance or coinbase. This so called risk management is indirect statement from government to evryone who are trying to hide their wealth under the privacy blanket of blockchain which is just a myth these days with all those mandatory KYC for even small amount of $1000.
This is the reason why a lot of countries can't impose regulations because most of them don't know how to handle cryptocurrencies. If they don't understand its nature, how they can implement such regulations? So to minimize possible money laundering, they need to impose such procedure otherwise, they may be missing something along the line. So this kind of regulation is not surprising.
December 22, 2019, 10:34:33 AM
It would be a mistake to deal with such issues as a whole, (Case by Case) otherwise the platform would have issued a clear law on dealing with mixers.
Freezing funds on the pretext that they were received from a mixer is sufficient justification, especially if the user has not completed the source of the funds and has withdrawn/deposited large sums that do not match his average income.
The mistake is to freeze any money from mixeres without proving that those who use them are doing illegal activity.
Freezing funds on the pretext that they were received from a mixer is sufficient justification, especially if the user has not completed the source of the funds and has withdrawn/deposited large sums that do not match his average income.
The mistake is to freeze any money from mixeres without proving that those who use them are doing illegal activity.
December 22, 2019, 06:18:02 AM
Bitcoin mixing is one of the headace for regulators so they will impose restrictions on exchanges like binance or coinbase. This so called risk management is indirect statement from government to evryone who are trying to hide their wealth under the privacy blanket of blockchain which is just a myth these days with all those mandatory KYC for even small amount of $1000.
December 21, 2019, 07:39:56 AM
Coinbase is generally setting the trend when it comes to such policies. They have been terminating accounts of those who withdraw to gambling sites for quite a long period of time.
And since that's been in their terms and conditions since minute one I'm absolutely fine with that.
Binance doing this unwillingly and regulation on the horizon that may impose it on plenty of other places add a higher level of suck. If coins that have previously been mixed get turned away that's a major problem.
December 21, 2019, 04:57:23 AM
Not too surprising in my opinion. Coinbase is generally setting the trend when it comes to such policies. They have been terminating accounts of those who withdraw to gambling sites for quite a long period of time.
This ecosystem is bound to be firmly regulated so expect more of these drastic changes in the future. People probably didn't expect Binance to follow but they have been getting stricter as well. They are not an exception.
This ecosystem is bound to be firmly regulated so expect more of these drastic changes in the future. People probably didn't expect Binance to follow but they have been getting stricter as well. They are not an exception.
December 21, 2019, 02:42:38 AM
I'm not surprised mixed coins are questioned but it raises the same old questions about how far they can take tainting before everything grinds to a halt.
It's an interesting dilemma for exchanges. They have a strong interest in maintaining fungibility. I mean, who wants to use an exchange that grills you over every deposit and withdrawal? At the same time, regulators are obviously closing in. It'll be interesting (and sad) to see what happens to exchanges over the next few years.
From a user perspective, it seems reasonable to take more effort to separate exchange withdrawals from obviously forbidden activity. Even if it's just shuffling outputs around in multiple transactions, do something so you're not withdrawing directly to a gambling service, darknet market, address to be used in a coinjoin, etc.
December 21, 2019, 02:26:03 AM
A user of Binance Singapore has reported a rather worrying development for those Bitcoin users that value their privacy. The exchange platform has apparently banned the customer in question from withdrawing its funds because it suspects that he or she has previously used a wallet with a built-in coin mixing tool.
Twitter user Catxolotl (@bittlecat) reported that it received a message from Binance Singapore informing them that their withdrawals have been suspended due to “risk management.” The trader queried this with the exchange, which responded by stating that the company has reason to believe the individual used coin-mixing service CoinJoin. This is a standard feature of the privacy-focused wallet Wasabi.
Source link here
In the next few years, centralised exchanges are going to be a thing of the past. Decentralised exchanges (DEXs) are the future.
I had to admit that KYC plays an important role today and in the future for AML purposes, but users like us don't have the control of our own funds as long it is stored in centralised exchanges.
If the customer or trader doesn't want to have withdrawal limits or control, they should go to decentralised exchanges.
What would be your reaction to this one guys? Looking forward to hear them out. Cheers!
Twitter user Catxolotl (@bittlecat) reported that it received a message from Binance Singapore informing them that their withdrawals have been suspended due to “risk management.” The trader queried this with the exchange, which responded by stating that the company has reason to believe the individual used coin-mixing service CoinJoin. This is a standard feature of the privacy-focused wallet Wasabi.
Source link here
In the next few years, centralised exchanges are going to be a thing of the past. Decentralised exchanges (DEXs) are the future.
I had to admit that KYC plays an important role today and in the future for AML purposes, but users like us don't have the control of our own funds as long it is stored in centralised exchanges.
If the customer or trader doesn't want to have withdrawal limits or control, they should go to decentralised exchanges.
What would be your reaction to this one guys? Looking forward to hear them out. Cheers!
The user got his funds back after sending a short explanation. CZ's reponse was:
Quote
Binance SG operates under the requirements set forth by MAS and our MAS regulated partner, Xfers. Hence there are AML CFT controls set in place.
Not something for us to decide.
I believe they have already reached out to the you to clarify and explain. Cheers.
Not something for us to decide.
I believe they have already reached out to the you to clarify and explain. Cheers.
I expect a lot more similar complains (not just about Binance) with the upcoming AMLD5 requirements for exchanges and services.
December 21, 2019, 02:14:13 AM
I think he will take any solution to get the money back. Binance is big exchanges with good reputation, has clearly work and safety system to protect their business. KYC is needed to avoid scammer and as parameter to detect real member or person with multiple account. Let's Binance decide what the best for them, as customer we just need to follow the rules. Keep up date information about crypto and connection with financial world, someday ( maybe ) exchanges will release unaccepted rules for us, we should be ready.
December 21, 2019, 12:58:29 AM
So, this means Binance can detect coinjoin transactions as they please and block the user without giving proper explanation?
I understand this is for security but can't they at least let them withdraw and then block them for using the services before the issue is sorted? Things like this make smaller and scammy exchanges keep ripping off their users.
I understand this is for security but can't they at least let them withdraw and then block them for using the services before the issue is sorted? Things like this make smaller and scammy exchanges keep ripping off their users.
December 20, 2019, 11:30:01 PM
This is exactly the reason why you don't combine a decentralized financial solution with a centralized/regulated one. Just because people care about their anonimity it doesn't mean that their funds should get freezed. Of course that if there are more serious reasons like suspecting for money laundering or criminal activities then the freeze is a needed procedure.
The improvement of the use of cryptocurrency is that they need to improve security too for their users. As the management of the government in Singapore, they want to make sure all of the transaction is recorded and verified came from a real person. It is not too hard today to modify and create a website or software that can duplicate money and accounts to make an additional income with a single time. The binance will hold the transactions that are much suspicious they are trying to avoid having over usage of withdrawal and focusing on verifying the information.
December 20, 2019, 09:50:17 PM
I disagree.
Centralised exchanges are here to stay. People moan about all the KYC requirements - and then continue to use them.
Nobody uses the Dex's because they have no liquidity and no marketing.
Centralised exchanges are here to stay. People moan about all the KYC requirements - and then continue to use them.
Nobody uses the Dex's because they have no liquidity and no marketing.
Agreed. Not that there really are any proper decentralised exchanges yet, but when there are it'll be just the same as things like Openbazaar. Everyone will be waiting for everyone else to use it so it'll never take off.
I'm not surprised mixed coins are questioned but it raises the same old questions about how far they can take tainting before everything grinds to a halt.
December 20, 2019, 06:37:06 PM
This is disappointing to see. Singaporean crypto exchanges have always been quite lax in their AML standards. Hopefully this isn't the start of a new trend.
Binance Singapore is a fiat exchange with real-time, 24/7 SGD deposit and withdrawal. No decentralized exchange can compete with that.
If the customer or trader doesn't want to have withdrawal limits or control, they should go to decentralised exchanges.
Binance Singapore is a fiat exchange with real-time, 24/7 SGD deposit and withdrawal. No decentralized exchange can compete with that.
December 20, 2019, 10:35:06 AM
Well I hope so. But in the end, If DEX were the ones to remain, people need to stop scamming and lying to each other by the end of it. Follow the rules set. CEX are made and are more used by DEX because of its security. We wanted to use DEX for our anonymity, but it lacked the security of how CEX does it, and CEX lacks the anonymity we need. No exchange so far has met with both conditions users want, sadly enough, and I really doubt DEX would dominate the market by the end.
It's not a matter of if Users want it or not. It's a matter of if Users actually USE it or not, like with how CEX is the one that is mostly used. People whine, they don't want KYC, but they still use it, right?
It's not a matter of if Users want it or not. It's a matter of if Users actually USE it or not, like with how CEX is the one that is mostly used. People whine, they don't want KYC, but they still use it, right?
December 20, 2019, 09:29:10 AM
I understand what they are trying to do. After all, when you are doing something as legit as that and become as big as Binance I don't think that privacy bitcoin wallet is that much allowed in the legal sense. You have to make sure KYC is very important role to play and you need to consider that as a responsibility as a company.
Maybe you wouldn't do that yourself and I understand why people are upset about it but if you are not being careful enough the big companies go down even harder than the other ones. Remember if you have 3 thousand dollars in debt people consider you poor, if you have 3 million dollars in debt you are rich, if you have 300 million dollars in debt you are considered wealthy influential person.
Maybe you wouldn't do that yourself and I understand why people are upset about it but if you are not being careful enough the big companies go down even harder than the other ones. Remember if you have 3 thousand dollars in debt people consider you poor, if you have 3 million dollars in debt you are rich, if you have 300 million dollars in debt you are considered wealthy influential person.
December 20, 2019, 08:39:46 AM
In the next few years, centralised exchanges are going to be a thing of the past. Decentralised exchanges (DEXs) are the future.
I had to admit that KYC plays an important role today and in the future for AML purposes, but users like us don't have the control of our own funds as long it is stored in centralised exchanges.
If the customer or trader doesn't want to have withdrawal limits or control, they should go to decentralised exchanges.
What would be your reaction to this one guys? Looking forward to hear them out. Cheers!
I disagree.
Centralised exchanges are here to stay. People moan about all the KYC requirements - and then continue to use them.
Nobody uses the Dex's because they have no liquidity and no marketing.
December 20, 2019, 07:53:19 AM
This is exactly the reason why you don't combine a decentralized financial solution with a centralized/regulated one. Just because people care about their anonimity it doesn't mean that their funds should get freezed. Of course that if there are more serious reasons like suspecting for money laundering or criminal activities then the freeze is a needed procedure.
December 20, 2019, 07:45:04 AM
I do not support anyone here which is right and which is wrong, if indeed the person wants to maintain privacy he should sell it on the DEX exchange where we know it will maintain their privacy, binance has strict rules for all users in a positive view of the binance only prevent for something bad to happen to its users, but who knows who is right, we are usually limited to withdrawing if we don't do KYC, this person seems to be attracting in large numbers so facing a problem like this
December 20, 2019, 07:30:01 AM
A user of Binance Singapore has reported a rather worrying development for those Bitcoin users that value their privacy. The exchange platform has apparently banned the customer in question from withdrawing its funds because it suspects that he or she has previously used a wallet with a built-in coin mixing tool.
Twitter user Catxolotl (@bittlecat) reported that it received a message from Binance Singapore informing them that their withdrawals have been suspended due to “risk management.” The trader queried this with the exchange, which responded by stating that the company has reason to believe the individual used coin-mixing service CoinJoin. This is a standard feature of the privacy-focused wallet Wasabi.
Source link here
In the next few years, centralised exchanges are going to be a thing of the past. Decentralised exchanges (DEXs) are the future.
I had to admit that KYC plays an important role today and in the future for AML purposes, but users like us don't have the control of our own funds as long it is stored in centralised exchanges.
If the customer or trader doesn't want to have withdrawal limits or control, they should go to decentralised exchanges.
What would be your reaction to this one guys? Looking forward to hear them out. Cheers!
Twitter user Catxolotl (@bittlecat) reported that it received a message from Binance Singapore informing them that their withdrawals have been suspended due to “risk management.” The trader queried this with the exchange, which responded by stating that the company has reason to believe the individual used coin-mixing service CoinJoin. This is a standard feature of the privacy-focused wallet Wasabi.
Source link here
In the next few years, centralised exchanges are going to be a thing of the past. Decentralised exchanges (DEXs) are the future.
I had to admit that KYC plays an important role today and in the future for AML purposes, but users like us don't have the control of our own funds as long it is stored in centralised exchanges.
If the customer or trader doesn't want to have withdrawal limits or control, they should go to decentralised exchanges.
What would be your reaction to this one guys? Looking forward to hear them out. Cheers!
I don't have bad opinion about this. They are banning people with reasons and in my opinion it is to safe them from bad conducts. Mixer could be a place to do money laundering and Binance just doesn't want to looks like supporting criminals.
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