Can an exchange that requires KYC call itself as DEX?

shoreno

full member

Activity: 1750

Merit: 118

Quote from: voztata on February 25, 2019, 12:29:32 PM

> Snip <

im a regular user of decentralized exchanges and im not only trading on one platform but almost all dex exchange ive done testing them out and i dont see any kyc on their sites . what you are saying is true , only centralized exchange have a kyc but they are not necesary requiring it before you can start using their platform . kyc only meant if you want to increase your trading limits .

Quintrix

member

Activity: 259

Merit: 17

Even if they are a good exchange I will not even try to trade here because I'm having a had time to understand their interface, but I'm surprise that they have good traffic if they only cater for Korean traders, this must be a good exchange for Koreans.

voztata

hero member

Activity: 998

Merit: 504

It is not possible for a fully decentralized exchange to conduct KYC and still call itself a dex, the reason why it's called a decentralized exchange is because it has no central database or central wallet where the user's activities are being stored. So i will say that any exchange collecting KYC and still referring itself as a DEX is a joke because they are still centralized.

CryptoAlphaStar

full member

Activity: 574

Merit: 101

I guess it can just for the technical reasons and the way transactions are executed. But not for ideological reasons. It really doesn't make sense for such a DEX to exist.

VanDeinsberg12

hero member

Activity: 1540

Merit: 507

Quote from: raditerko on February 23, 2019, 08:09:18 PM

lol, sure no. if DEX asks a documents, from that moment it becomes CEX Grin

literaly, how can they check your documents without centralizing?
for me it is even strange when exhcanges ask KYC for small amounts or cryprto-crypto trading.

The data must be stored somewhere else in the cloud, that itself obviously cancels out the very purpose of being a dex which purpose is to make sure that there is no one storing the client data.
Maybe the government law forces them to do so but nonetheless might aswell off being a centralized exchange instead.

abstractednerve

hero member

Activity: 752

Merit: 500

Bcnex - The Ultimate Blockchain Trading Platform

Thank you for mentioning the name. I will ask the Allbit team, this is not a good manner! And, I would suggest traders avoid these shady exchanges. I don't know why they are asking the user's real identity when the crypto market's nature is decentralized and anonymous! They excuse, KYC is important to prevent scammer and to detect real users only, but what is happening every year? Billions of crypto asset hacked last year from the exchanges! KYC just a formula for them to prove they are a good exchange, but they are wrong here! and KYC verification in a decentralized exchange? Just Ridiculous!

tins

hero member

Activity: 882

Merit: 500

Trading floors from Korea force users to KYC before starting trade. I heard that because their country taxed traders

Jrfranco

member

Activity: 786

Merit: 10

Quote from: rosezionjohn on February 22, 2019, 11:44:11 AM

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

EDIT: For those who are asking for the exchange name, it is Allbit. Based on the replies, it seems that this case is only in S. Korea. Let's hope this does not spread.

In my own opinion, I am not really brainy when it comes to dex or anything but I believe that kyc is one of the important factor in any or all the exchanges, we knew already how important it is as a user and it serves as an security factor.

andika2018

member

Activity: 700

Merit: 10

Quote from: inanilujimi on February 23, 2019, 06:55:33 PM

if the exchange has KYC, of course it is not dex.
it is definitely a centralized exchange because only a centralized exchange has your private key and requires the KYC to trade it.

Centralized exchanger must be need KYC to comply with government regulation to avoid from money laundering. If that Korean Exchanger, perhaps government require KYC from every member and i think its fine, but basicly DEX should be not requiring KYC

raditerko

jr. member

Activity: 56

Merit: 10

lol, sure no. if DEX asks a documents, from that moment it becomes CEX Grin

literaly, how can they check your documents without centralizing?
for me it is even strange when exhcanges ask KYC for small amounts or cryprto-crypto trading.

LbtalkL

full member

Activity: 1176

Merit: 162

As everyone is saying obviously its not a DEX, that exchange is a clown. Everything that requires kyc is not a dex I made a glimpse on the exchange site they have really done it saying Decentralized P2P Exchange.
I have seen this on their privacy policy.

"Personal information collected in the process of using the membership-based services shall be processed for the following purposes: confirming identity, confirming User age, identifying individuals, preventing/identifying illegal use, preventing unauthorized access, confirming membership intention, membership restrictions, confirming identify of legal representative, preserving records for dispute settlements, processing complaints, and delivering announcements. "

cchub

full member

Activity: 560

Merit: 101

Migranet ITO

Of course a DEX cannot demand KYC. This is bs... We need DEXes without KYC.

inanilujimi

sr. member

Activity: 1876

Merit: 259

if the exchange has KYC, of course it is not dex.
it is definitely a centralized exchange because only a centralized exchange has your private key and requires the KYC to trade it.

Ultimist

full member

Activity: 812

Merit: 102

Of course, in decentralized exchange does not need to pass KYC. But maybe this exchange had a reason why it decided to identify its users. Or she doesn't understand what decentralization means.

MiniMountain

full member

Activity: 624

Merit: 101

BBOD Zero-Fee Exchange

No! they can't proclaim their platform as DEX if it requires KYC because it is like giving authority to their users which is far away from the true meaning of DEX but maybe they are combination of both centralized and decentralized exchange.

dimastegar

sr. member

Activity: 798

Merit: 251

Small Trader

Dex is made to keep traders' privacy safe. And it would be funny if Dex asked KYC for its users. Dex is an exchanger that has only one pair, Altcoins / ETH. And Dex is built with a smart contract from the Ethereum network.

pedpedped101

jr. member

Activity: 552

Merit: 1

Quote from: funchiestz on February 23, 2019, 07:08:13 AM

Quote from: rosezionjohn on February 22, 2019, 11:44:11 AM

Recently, I've encountered a Korean exchange that requires KYC before you can start trading. Their website says its a DEX.

I got used to the idea that decentralized exchanges like Etherdelta, Forkdelta, DDEX should not require any personal information from traders. Just connect the wallet and that it.

I don't think you understand the meaning of DEX. A decentralized exchange can't ask us for a KYC. If it is already automatic, it is not DEX.

I am just thinking that the OP actually found an exchange that calls itself DEX and yet requests for kyc before you can withdraw.
In my opinion, the OP, should instead go for the real DEXes instead of such exchange that is asking for kyc.
One of the main reasons people opt for DEX is to avoid such thing as kyc. So since it did not meet your desire, then opt for another.

Osayo

jr. member

Activity: 294

Merit: 1

This is a big NO response and also a suspicion decentralized exchange as well. It may be trying to boost its credibility by performing a KYC so as to deceive the unsuspecting crypto traders. Be careful with such DEX!

Buzhou

member

Activity: 199

Merit: 10

If this is true, it can not be called DEX.
But I think it has already clarified to you what can happen when a certain person from some countries use these services.
However, the DEX should not fear this because each one is responsible for their actions.
It's time for platforms and services not to spend energy concerned about punishments because irresponsible people use their services.

sabine80

member

Activity: 728

Merit: 14

a dex exchange should not require kyc. for me, a good dex exchange means that i do not have to deposit any data from me. in my opinion, a dex exchange asking for something like that is not a real dex exchange for me.

Topic: Can an exchange that requires KYC call itself as DEX? (Read 566 times)