Is KYC is benefit to crypto people or not. what are the advantages and disadvantages of doing KYC.
Universal money and Anonymous is the biggest strength of btc
BTC, now every country follows KYC and then it can be controlled by someone.
Now KYC is trend in crypto market.....
I too used to wonder why we should do KYC to trading on cryptocurrency exchanges given that crypto came about out of the need for people yearning to stay anonymous from governmental financial tracking of transactions online. But then for exchanges to conform to regulations in countries where they operate it seems like they cannot do without KYC especially where the movement of large sums of money are involved.
KYC (Know Your Customer) refers to a process that banks and other financial institutions use to gather identifying data and contact information from current and potential customers. Its purpose is to prevent fraud, money laundering, and other illicit activity, as well as the misuse of financial accounts.
So to answer your question around the benefits of KYC to crypto, KYC helps in reducing and eliminating money laundering and financial fraud, remember Silk road. Also, there are fears around the world especially in security circles that funds moved and exchanging hands anonymously can end up being used to finance terrorism and extremism activities.
BUT if one wishes for ways to circumvent KYC, you can diversify your portfolio of crypto holdings to different exchanges. That is, if you’re not comfortable to give away your KYC data to any exchange, the solution is for you to separate your funds into different exchanges. This is possible because most exchanges provide daily 2 BTC withdrawal for non-KYC users
Also as a rule of thumb, you don’t want to keep all your eggs in one basket. (Even if the basket is the BIGGEST baskets in the world
Binance) That’s another reason for you to separate your portfolio into different exchanges.