Topic: Do the big KYC exchanges care where your coins come from? (Read 647 times)

Are we entirely sure that they are going to do it to us as well? Have you seen Binance illegally froze anyone's account? I have mentioned that binance does stop these scammers and rug pulls and hackers and all that, we need to consider this to be the most important part. I mean we are seeing how things are changing right now, that has to be most important part.

I feel 100% secure about it and we are not going to get our account frozen, I personally believe I am fine with them, and I put my money on them because I believe we are going to not have any issues with them at all, that has to be the most important part. I understand you might fear it, and if you do then you could just avoid putting your money in there at all.

I dont even know if thats why I was banned from Gemini.  For all I know they banned me for using a vpn.  I dont know if the eth from Veil is clean or not, I used it one time to mix a small amount of eth.  And that eth never went back to any CEX, it was sent out as a payment

Freezing of cryptocurrency in exchanges tells you why we don't have to keep our cryptocurrency on exchanges because they're not safe. Centralized exchange which are custody exchanges are doing what they're supposed to do by clearing their names as associate to scammers and hackers that try to launder stolen cryptocurrency through their exchange. They have to freeze those transactions because they have the power to do that. Binance exchange have frozen lost of accounts that are connected to reported frauds although they sometimes freeze innocent accounts too and for those that don't have the required details to proven their innocents, they don't get their accounts back and loses all the cryptocurrency they owned. We should never make the mistake of trusting exchanges to hold out cryptocurrency.

The gate opens and is friendly when you want to join, but when you want to exit, it can be very different. You can not trust centralized exchanges to be friendly with you forever and give you access to their services without KYC forever. Many centralized exchanges shadily use KYC as their tool to freeze user accounts and funds too.

It's not new story and new warning, but it does worth to share it again.
Reminder: do not keep your money in online accounts

The less difficulty in terms of usage and when you make deposit, not when you make a withdrawal.

Banks and exchanges want whales to use them, hence they give special treatment for them and many promotions. But, when you want to cash out or withdraw your money, they will ask to wait for certain period of time, you can prove this after you become a millionaire.

This is not how KYC and compliance works. I am definitely not a millionaire, not even ever invested 1 BTC when it was 20k, and I had to complete all the checks once I hit $100 daily limit.

Trust me, the bigger you are, the less difficult they will make it for you. Banks and exchanges don't care. They just want to have the least problems for the biggest clients.

Big, small, all of them. I mean we have seen plenty of people who hack places, and when hackers put their money in exchanges, exchanges catch them and freeze their accounts, that is one of the most important parts of crypto, that's where we stop them whenever we can. Of course some of them are very smart, and use clever tactics to move money over and not get caught, but the ones who do, exchanges will freeze the account.

I have seen plenty of Binance account frozen because they used BSC to not only scam and steal from people, but even rug pulls as well, because rug pulls are basically stealing too, and too many project devs tried to turn their BNB into cash and got caught at Binance as well. So yeah, if you illegally take someone's money and they know about it, then they end up freezing your account. I am not sure if they actually pay the victims back or not, that part I am not sure about, but it's clear that they do something about it and not just ignore.

If you are just a shrimp investor then this is something that a huge in concern on where your funds do came from. They dont really care about on the funds on where its been from not unless if it will really be that a huge chunk or we do talk about hundreds of thousands or millions then there's a possibility on where they will be making out some checks. Pretty sure that this company is really that monitoring out where these big funds came from and to know that these are regulated platforms or business on which they are really that getting in line with government rules and regulations on which if there's something that they had missed or cant be able to provide then that will really be giving out that huge impact or problem into their business and this is something that they dont really like to happen. Just dont make yourself that being too confident because there might be some instances that they will be making out some checks, but so far on my experience i didnt have been able to meet up some issues but just like on what i have said earlier that dont make out some checks on small amount transactions and they will be accepting it out as long it will be not something that gets attention into. Whales or simply millionaires are the ones will really be having these kind of problems but for us who are just that small investors or fellas then they dont really just that care.

Yup, that was the past. Global exchanges used to operate without license, local exchanges must do licensing. Thats the main difference.

But I think now they all have to comply, so Binance had to pull out of many countries, and then when they came back in they probably had to do more KYC and Source of funds requests. Like I said tho I don't use Binance these days after the SEC lawsuit, so have no idea. But we all know from the court case Binance even helped people use false dox so who knows

They usually don't care that's why they don't ask you to always tell them where the deposits came from. They'll be concerned when the deposit gets flagged because the address was involved in a scam and it has been reported. Receiving coins from mixers can also be a problem as you'll be asked to show proof that you own the coins and it isn't a stolen cryptocurrency. Some exchange don't ask you for any proof but they will close your account unaware when it has to do with an address that has a high alert from the federal government through the SEC. Usually coins from mixers are the one that gets flagged the most. It's always good to not deposit directly from a mixer or casinos into an exchange but pass the transaction through your personal wallet so you can sign a message to prove ownership if the need arises.

Usually global exchange such as Binance, Kucoin or Huobi never care where are your deposit fund come from gambling account, bitcoin mixer wallet no matter and your account keep secure without freeze.
But difference with my local exchange market when detecting huge amount deposit will freeze awhile and must filling form about where are our deposit fund come from and must put the sender wallet for refund if get failure deposit criteria.

Seems deposit fund come from due local exchange regulation, maybe they won't avoid from money laundering and ask detail about fund deposit from and need to know about the sender. In my local exchange Indonesia want detect taxes transaction because huge fund deposit and its our regulation have been adopted last one year ago.

The very first response is correct, everything seems to be flagged for where it came from.

However, in my experience prior to 2023 which is when I really used Binance heavily, they never cared where it came from. Cause I definitely deposited directly from gambling, which supposedly in the terms I remember was not possible.

I don't know if they care now tho.

If they are no-KYC exchanges, they can not spend resources to analyze origins of users' coins.

If they are KYC exchanges, I am quite sure with you that they have automatic bots to analyze it, but it can be different procedures among exchanges. These KYC exchanges can have deep analysis to detect tainted coins from their users' deposits or they just have a simple procedure to deal with Compliance issues with governments and regulatory agencies.

No doubt that big exchanges especially Tier 1 Centralized Exchanges will have stricters procedures which are their self-defensive tools, because they're aware that they are most favorite targets of governments. Binance is an example, and they are favorite targets to shut down and many lawsuit cases as well as $B fees to pay to governments.

Bitcoin Q&A: Blacklists, Taint, and Wallet Fingerprinting

they do investigate from where the coin coming from sometime, I think they have automated system for this kind of thing.
KYC also doesn't guarantee you won't get your money frozen, as sometime they even demand more in-depth verification such as video call and so on.
I think most of exchange are doing exactly this because they have no choice but to comply to the regulation.
as for the smaller exchange that doesn't do this, they're just still under the radar, eventually they will.

This suspicion could lead to the funds being frozen because it is certain that CEX will investigate further if danger is found then they can take direct action.
Although I myself have never experienced a case where the funds were frozen or the amount was suspected by CEX because it was not a large amount so they did not conduct any investigation.

What has been frozen is the funds from the mixer and CEX detected it easily.

I have not make use of this exchange you mentioned above but I know quite well that some exchange does not do such investigations of where your coin is coming from but what I know that they can do is to ensure that you are a sincere someone by having your kyc done, because it is the kyc being your documentation that is necessary or important to every exchange because of scam once you are done with your kyc, I think that they have much to say or questions your deposit, because if their is any accusations against you, they have what they can tender to free themselves from the crime.

Of course they care but about the source not about the amount, because CEXs have to comply with the rules of the country where they operate anything suspicious can put them in danger.
Lot of funds coming from small exchanges can raise suspicions of big exchanges, because it is unlikely that a whale would trust their funds to a small exchange.

I think all centralized exchanges have mandatory KYC and this has been going on since years ago. They will always care where the money is coming from but in my mind, the chances of getting flagged are a lot higher when you are talking about bigger amounts (except for maybe Binance based on the comments here). Similar to when you would like to send money from the exchange to a bank account. They will monitor it but you will never really have issues if you stay below certain numbers (<3000 €). At least that is valid for my country.

Some bells ring a charm - so you better have something ready for the CEXes to come after you 
Maybe this time you will be luck, but the next - not so much.
And it's better to be legal, as you said.

Centralized exchanges has upgraded unlike then, ever since they started probing them of allowing money laundering, they have team up with some chain analysts to watch over transactions that goes in and out of some exchanges, if you are caught using tent coins or stolen coins that is reported and you deposit the coin to the exchange, consider the coin is bye gone because it will be seized and your account risk been banned too if found suspicious of been criminal.

What I know is that many centralized exchanges are now scared of funds that comes from mixing, many of them don't want to see coins that are mixed but free coins that has been move from one wallet to another. I remember Binance asked some users in this forum that participated in mixer signature campaign to provide some evidence of payment and proof because the funds were directly send to Binance, my advice is this; if you know that your coins isn't pure Utxo, don't send to any centralized exchanges to avoid explanations later.