Topic: Exchangers and new regulations. - page 2. (Read 560 times)
These are basically for security purposes. Exchanges are like crypto banks with trading facilities. So they are trying to give some assurance of the coins in their care. If many exchanges adopts these trickling regulation , we are going to have further regulations in other areas of cryptocurrency like icos and scamming.
The most recent case I've noticed is the Poloniex one
Poloniex was acquired by Circle which is owned by a bank.
I think that they have plans in exchanging crypto for fiat in a way or another and for that KYC is a must.
At least this is what I hope to be the reason and not something obscure related to leaking user info to bankers or government. At least not yet.
KYC In ploniex was implemented early this year and so far no problem about the security of every user. The price is red in poloniex simply because the market is dumping. I’m using poloniex and I still believe my money and personal informatio will be safe there, hopefully.
You must be jumping into conclusions there mate. Government demanding Exchanges to require KYC to their users does not make them a new kind of banking system. KYC as a requirement is a simple means to avoid a lot of criminal activities, not to mentions that it is their way to verify that you are a real person, and not a robot trading into their system.
But that's why banks require KYC -- they are considered financial institutions and money transmitters, so they need to comply with anti money laundering laws. Governments are beginning to treat exchanges the same way. So if people use them to store money, they're essentially banks. They know your identity, they monitor your financial transactions, they report suspicious activity to the government. They may not be lending institutions, but for our purposes as customers, they're essentially banks.
There's even a bill in the US -- not passed yet -- that seeks to define exchanges (and other entities including mixers) as financial institutions. If the bill is passed, exchanges will literally be considered banks.
IMO, these new regulations are not so straining as they seem. These may even help reduce fictitious accounts and identities which may constitute fraud. It may be alarming for some especially for those who value their freedom with the use of crypto but these new regulations do not constrain too much its users. I would much prefer to have a secure and safe system rather than participate in a world where criminals are free to run about.
So, in this world in which there are so many criminals, as you say, you're willing to send to a company your digitalized personal ID, as well as other personal information, as the scan of your own face?
The point is: all this information can be hacked as well!!!
That's true. They are looking for ways to get user data and as you said, utilizing the exchange platform is one of the easiest way they can do that. I think that could also be the reason why KYC is on the rise. Anyways everyone says you're information is private and safe with us but I bet you if anything comes up and the government needs access to your data, they'll do everything they can to get it
IMO, these new regulations are not so straining as they seem. These may even help reduce fictitious accounts and identities which may constitute fraud. It may be alarming for some especially for those who value their freedom with the use of crypto but these new regulations do not constrain too much its users. I would much prefer to have a secure and safe system rather than participate in a world where criminals are free to run about.
I am using few exchanges but they didn't ask me any proofs yet but we have the options that to provide our personal details to increase our withdrawal limits per day so it is not needed for a small traders like me and I never provide any details yet.But if it will be implemented in future then it may affect the trading as well because most of the people want to stay anonymous with the crypto earnings.
I have actually zero in Poloniex, and, still, they asked me for a picture of my face, alongside with all the other information.
Exchanges taking this path can become a target for hackers, but maybe the coins are no longer to be their goal, for they can hack even your face and your place of residence, your trading history and exactly know how much you have, how much money you've moved.
Besides, the fact of facial recognition still gives me shivers. I don't have any facebook account of this kind of social media, but I have friends and they post anything in their accounts, even pictures of me with my family, etc. I don't get why the picture, for the facial recognition, is unnecessary and pointless to protect people, on the contrary, this is more about surveillance.
You must be jumping into conclusions there mate. Government demanding Exchanges to require KYC to their users does not make them a new kind of banking system. KYC as a requirement is a simple means to avoid a lot of criminal activities, not to mentions that it is their way to verify that you are a real person, and not a robot trading into their system. We are also lucky as we are not required to physically appear in order to verify our accounts compared to some stock brokers where they require you to physically submit your documentations. We cannot have a free and unregulated market aymore, it is much more safer this way.
I am using few exchanges but they didn't ask me any proofs yet but we have the options that to provide our personal details to increase our withdrawal limits per day so it is not needed for a small traders like me and I never provide any details yet.But if it will be implemented in future then it may affect the trading as well because most of the people want to stay anonymous with the crypto earnings.
I have actually zero in Poloniex, and, still, they asked me for a picture of my face, alongside with all the other information.
Exchanges taking this path can become a target for hackers, but maybe the coins are no longer to be their goal, for they can hack even your face and your place of residence, your trading history and exactly know how much you have, how much money you've moved.
Besides, the fact of facial recognition still gives me shivers. I don't have any facebook account of this kind of social media, but I have friends and they post anything in their accounts, even pictures of me with my family, etc. I don't get why the picture, for the facial recognition, is unnecessary and pointless to protect people, on the contrary, this is more about surveillance.
Since last week? As far as I know, they said they were going to implement those new rules in Q1, as early as January. There were some warnings about this. I think it had to do with the acquisition by Circle.
Personally, I pulled my money from Poloniex when the first announcement was made (December, I think). I don't trust them or the third party they use to verify documents, and I didn't want my funds locked up over it.
Well done. I didn't hear of it the last December, I just received an email and my account was blocked at the same time. Fortunately, I had nothing in there.
The Circle change, yep, probably that's why.
I am using few exchanges but they didn't ask me any proofs yet but we have the options that to provide our personal details to increase our withdrawal limits per day so it is not needed for a small traders like me and I never provide any details yet.But if it will be implemented in future then it may affect the trading as well because most of the people want to stay anonymous with the crypto earnings.
I have actually zero in Poloniex, and, still, they asked me for a picture of my face, alongside with all the other information.
Exchanges taking this path can become a target for hackers, but maybe the coins are no longer to be their goal, for they can hack even your face and your place of residence, your trading history and exactly know how much you have, how much money you've moved.
Besides, the fact of facial recognition still gives me shivers. I don't have any facebook account of this kind of social media, but I have friends and they post anything in their accounts, even pictures of me with my family, etc. I don't get why the picture, for the facial recognition, is unnecessary and pointless to protect people, on the contrary, this is more about surveillance.
Since last week? As far as I know, they said they were going to implement those new rules in Q1, as early as January. There were some warnings about this. I think it had to do with the acquisition by Circle.
Personally, I pulled my money from Poloniex when the first announcement was made (December, I think). I don't trust them or the third party they use to verify documents, and I didn't want my funds locked up over it.
Well done. I didn't hear of it the last December, I just received an email and my account was blocked at the same time. Fortunately, I had nothing in there.
The Circle change, yep, probably that's why.
Well, it seems that regulations are taking the direction of controlling the exchangers' users information. Given the difficulty of controlling the cryptosystem, for it is decentralized and, somehow, anonymous, governments are choosing to introduce some new requirements into exchangers, so they can control the identity of the crypto users.
The most recent case I've noticed is the Poloniex one, for the new rules have been implemented since the last week. Now, they ask you for your real name, your place of residence, a pick of your personal official ID, your telephone number, and (the most amazing), a picture of your own face, alongside with a paper in which the date must be written.
Regulations are coming, and they can hit hard the market, I'm afraid. Today every coin in Poloniex appears in red.
So. They can't totally control the coins, but they can control the use you make of a coin.
If exchangers become a new banking system, then, what's the point of crypto?
I am using few exchanges but they didn't ask me any proofs yet but we have the options that to provide our personal details to increase our withdrawal limits per day so it is not needed for a small traders like me and I never provide any details yet.But if it will be implemented in future then it may affect the trading as well because most of the people want to stay anonymous with the crypto earnings. The most recent case I've noticed is the Poloniex one, for the new rules have been implemented since the last week. Now, they ask you for your real name, your place of residence, a pick of your personal official ID, your telephone number, and (the most amazing), a picture of your own face, alongside with a paper in which the date must be written.
Regulations are coming, and they can hit hard the market, I'm afraid. Today every coin in Poloniex appears in red.
So. They can't totally control the coins, but they can control the use you make of a coin.
If exchangers become a new banking system, then, what's the point of crypto?
I love the idea of decentralized exchanges. But how do you get USD in and out of the system?
There's things like Tether, but they've had huge banking problems, and have also been subpoenaed by the US government -- seems risky to depend on. And they require KYC for direct banking anyway.
That will actually fuel Bitcoin even more as base currency. People will buy Bitcoin where they can, and trade crypto to crypto on these decentralized exchanges till they are done and start to cash out in the same way they entered.There's things like Tether, but they've had huge banking problems, and have also been subpoenaed by the US government -- seems risky to depend on. And they require KYC for direct banking anyway.
It's also going to be interesting how atomic swaps will gain ground in the coming years. Theoretically right now it's only LTC>BTC and vice versa, but I can see it become a more global thing later on.
It will allow everyone to even bypass decentralized exchanges if deployed globally. We decide the exchange rate of the trades, where the market effect will even things out to add liquidity and fair exchange rates.
That is governments at work. It seems the only to get any manipulation to do to us is to follow the activities on exchanges. Well, let's all hope the rules and regulations dont become too much to affect our activities.
If exchangers become a new banking system, then, what's the point of crypto?
It wont really come to a point where exchangers can become a new banking system. Government might able to impose regulations but not totally stopping the true essence of cryptos existence.It would really give doubts specially to traders but come to think off that there are lots of exchangers in the market and implementing such regulation to be applied generally or on all exchange would takes time. For now we can avoid those exchange that do already have that kind of new regulation. 
I love the idea of decentralized exchanges. But how do you get USD in and out of the system?
There's things like Tether, but they've had huge banking problems, and have also been subpoenaed by the US government -- seems risky to depend on. And they require KYC for direct banking anyway.
There's things like Tether, but they've had huge banking problems, and have also been subpoenaed by the US government -- seems risky to depend on. And they require KYC for direct banking anyway.
There are services like Localbitcoins and paxful. Make use of those services. If your volume is not significant, then these websites will not ask for your ID and verification. Maintain and low status and never do a transaction with a significant volume, that may act positively on you. There are people who are willing to do cash transaction with you without going through banking channel. Explore these services and you will have your answer.
a picture of your own face, alongside with a paper in which the date must be written.
UGH, I must have overlooked that part..
I just did mine but didn't do the paper.. It'll probably screw me..
I haven't used polo in quite a while anyway..
The most recent case I've noticed is the Poloniex one, for the new rules have been implemented since the last week. Now, they ask you for your real name, your place of residence, a pick of your personal official ID, your telephone number, and (the most amazing), a picture of your own face, alongside with a paper in which the date must be written.
Since last week? As far as I know, they said they were going to implement those new rules in Q1, as early as January. There were some warnings about this. I think it had to do with the acquisition by Circle.
Personally, I pulled my money from Poloniex when the first announcement was made (December, I think). I don't trust them or the third party they use to verify documents, and I didn't want my funds locked up over it.
The answer is decentralized exchanges. earlier I was also a little skeptical about using a decentralized exchange, but looking at the requirements of majority of the exchanges, I think it is the best tool available for us right at this moment to fight this situation.
I love the idea of decentralized exchanges. But how do you get USD in and out of the system?
There's things like Tether, but they've had huge banking problems, and have also been subpoenaed by the US government -- seems risky to depend on. And they require KYC for direct banking anyway.
The most recent case I've noticed is the Poloniex one
Poloniex was acquired by Circle which is owned by a bank.
I think that they have plans in exchanging crypto for fiat in a way or another and for that KYC is a must.
At least this is what I hope to be the reason and not something obscure related to leaking user info to bankers or government. At least not yet.
That's a very serious concern. Governments know that they can't control the cryptocurrencies. That is the reason why they are trying to get information about the crypto users and assess the situation to take further step. A full sized regulation is inevitable for sure where crypto users will be identified by the government and forced to comply with their own rules and regulations. But as you correctly asked, if the anonymity is gone, what is the use of crypto?
I think some regulations are needed, ok. But this surveillance nightmare is going too far. As long as I provide my fiscal information, my name, and my ID, they should feel satisfied. But why your face? This is the one requirement I find scary as hell. Your face appears on your ID, but some exchanges are even asking for you to download a facial-scan program. To what end? For governments to recognize your face in any airport, street, station? What's next? A DNA sample? With which ones are they going to share this information if asked?
The answer is decentralized exchanges. earlier I was also a little skeptical about using a decentralized exchange, but looking at the requirements of majority of the exchanges, I think it is the best tool available for us right at this moment to fight this situation.
I'm afraid those are not going to survive for long... But, yes, we need to fight this. Orwell's 1984 wasn't supposed to become a manual.
That's a very serious concern. Governments know that they can't control the cryptocurrencies. That is the reason why they are trying to get information about the crypto users and assess the situation to take further step. A full sized regulation is inevitable for sure where crypto users will be identified by the government and forced to comply with their own rules and regulations. But as you correctly asked, if the anonymity is gone, what is the use of crypto?
The answer is decentralized exchanges. earlier I was also a little skeptical about using a decentralized exchange, but looking at the requirements of majority of the exchanges, I think it is the best tool available for us right at this moment to fight this situation.
The answer is decentralized exchanges. earlier I was also a little skeptical about using a decentralized exchange, but looking at the requirements of majority of the exchanges, I think it is the best tool available for us right at this moment to fight this situation.
Jump to: