In some cases regulations are necessary to put an end to fraud and corruption in the crypto/Blockchain industry. By requiring KYC compliance on centralized exchanges, the crypto world could become a better place. However, the mere fact that you'd need to provide some sort of ID verification would completely destroy the purpose of crypto. I've seen situations where centralized exchanges became hacked, putting customers' identities at risk. Last time I've heard, someone hacked Binance and threatened to expose customer's identities across the web.
This makes me to believe that KYC does more harm than good for crypto. Of course, regulation is necessary in order to legitimize the industry in its entirety. Institutional investors, conglomerates, and other entities will find crypto regulatory-compliant for their own needs. But knowing that KYC goes against crypto's principles, could make the entire industry similar to traditional banking.
What are your thoughts?
Exposing our private details is very risky especially if it will go to the wrong hands as they can do whatever they like. And what worst is that they can use our private details in shady transactions if they like to do so without our consent. This makes me to believe that KYC does more harm than good for crypto. Of course, regulation is necessary in order to legitimize the industry in its entirety. Institutional investors, conglomerates, and other entities will find crypto regulatory-compliant for their own needs. But knowing that KYC goes against crypto's principles, could make the entire industry similar to traditional banking.
What are your thoughts?
But with regards to exchanges especially those centralized one, most of them are asking for KYC because they want to prevent any fraud so we don't have other option but to follow their rules if we want to use their exchange. It is bad for crypto if it will be use in shady transaction but if it will be use correctly then it will not that bad at all, let's just hope that every exchange will tighten their security so hackers cannot penetrate their databases.
