Topic: Crypto exchanges and the essence of Bitcoin (Read 150 times)

It isn't too hard to give the required requirements on a KYC if the exchanger is really trusted and it is for your own good too as a trader because they are just making sure that they have a sufficient amount on data who are using their platform and exchanger plust it can protect you too . Once you got hacked you can report the said exchanger becasue that's the only that you give your personal details unless you log in on a phishing sites.

That KYC for customers to secure their account, not for the target to steal customers account or asset. Do you think about an exchanger without KYC or 2FA? That is easy to steal their assets. You can see so many peoples using Market Decentralized lost their token.

although exchanges are not a part of bitcoin itself, I see them as a part of his ecosystem, and many people have no choice but to use them. therefore I think it's a problem to be addressed and not to be overlooked only because "they are third-party services"

bitcoin have a public and trackable blockchain: it doesn't seem to be focused on anonymity. but there is many problems that exchanges bring, I think most of you are aware: extremely slow support, downtimes, stolen funds... all this attack the core ideology of blockchain

the solutions are DEX (Decentralized EXchanges), the most advanced right now is bitshares
atomic swap can also be a part of the solution, although slow processing would restrict ability of traders, and would be mainly useful to simply swap one coin to another (if both support it)

Exchanges don't necessarily have to preserve pseudonymity for Bitcoin to work well.  If you wanted to, you could just find a person with cash and trade with them directly.

Even if you failed to do that, you can mix or otherwise move your coins to try and anonymise your transactions after you buy the coins.
Yes.  It's important to governments that exchanges abide by their KYC regulation.
Decentralised exchanges.

It's a tricky one.  Exchanges aren't a part of Bitcoin's design.  Once you actually have some bitcoin, the most secure way to transact is to have one sender and one recipient, with no other third parties involved, so there's no KYC.  You also shouldn't be leaving your coins on an exchange once you have them.  But again, this is only once you already have bitcoins.  

If you want to get bitcoins, the ideal way to do that is to meet someone willing to sell you some bitcoin in exchange for your local currency, preferably in cash.  But they're not always easy to find.  So some people do find it easiest to register with an exchange who accept fiat, but unfortunately, most of them do now require KYC.  Even some traders on localbitcoins (which I'd recommend over centralised exchanges) insist on seeing ID now (which seems somewhat perverse), so even that isn't always a perfect solution.  But if possible, try to find someone on localbitcoins who doesn't want your ID.  

Failing that, there is a Currency Exchange subforum here, but be sure to check profiles and their trust feedback before striking any deals to ensure you're doing business with someone reputable.  If you can also find a reputable escrow, that's better still.  If you see any red text on the trust page, tread carefully.  It may also be worth checking the Reputation boards just to make sure there have been no prior grievances.

Altcoin trading is less of an issue, since decentralised exchanges and atomic cross-chain transactions will eventually put a significant dent in the popularity of centralised exchanges.  But bridging the gap between fiat and Bitcoin is going to be problematic for the foreseeable future.

Even if all the exchanges require KYC there is LocalBitcoins which will let you buy bitcoins for cash and from anywhere and with anyone in the world. Also there are decentralized exchanges launching which cut outs these KYC exchanges.

if by "blockchain" you mean the blockchain technology then no, it is not necessarily enforce anonymity nor does it enforce decentralization. you can see many altcoins that exist which are neither anonymous nor decentralized.

but if your focus is on bitcoin, then it is decentralized but it is not fully anonymous.

exchanges are simply services, like payment processors, gambling sites, retailers, shops,... what each of them do has nothing to do with bitcoin and its anonymity and decentralization.

if you go to a restaurant, eat, pay with bitcoin and get food poisoning does that mean bitcoin gave you food poisoning or did the restaurant? exchanges aren't different....

Not really, well that's not the purpose of exchanges. They are merely a conversion point when you want to convert your Bitcoin to Fiat or let say to some other crypto currency. Otherwise in the ideal scenario Bitcoin and your anonymous wallet's alone should be enough for any transaction. Let say in case of buying or selling you would be dealing with other party one to one without any exchange or third party involved.

Is not wrong for exchange to ask to know their customer. Exchanges serve as a store house where everybody involved keep their investment. So if they ask for identity to be provided before they enter into trust agreement with a customer, is a security measure to also secure the customer's fund. Banks do that anyway.

Blockchain and exchanges are not the same. They are far apart.

As far as I understand, blockchain and bitcoin imply anonymity and decentralization.
However, crypto exchanges now seem to kill these features by KYC procedures, so exchanges know who are their customers, how much money they have at their accounts etc.
Is this right? Will these exchanges exist for a long? How this problem can be solved?