Is KYC necessary for crypto-to-crypto exchanges? - page 2.

kakonhat

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Quote from: Abiky on January 23, 2019, 06:33:25 PM

Do you think it's necessary for a crypto-to-crypto only exchange (like Shapeshift) to require compliance with KYC/AML laws? AFAIK, cryptocurrencies aren't subject to the control of governments, since they were designed to eliminate middleman. Also, they're not considered legal tender and real currencies (unlike Fiat currencies like the USD).

Because of this, I wonder why governments are requiring KYC for crypto-to-crypto exchanges if cryptocurrencies are not issued or controlled by a central authority? Of course, this would be extremely necessary to implement within fiat-to-crypto exchanges, but I don't any reason why it’s necessary to enforce KYC/AML on crypto-only exchanges.

Can someone enlighten me about this?

On the side you are right, you have good logic for this question. But I think KYC not only for that it also need to verify your account for future. Suppose you have lost your email or 2FA then when you will go to recover it then there will need KYC to know the real account owner. Maybe it could be one more reason for the KYC. If I am wrong please forgive me.

elda34b

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Tbh I'd rather not send my personal details online to someone who I never met in real life. Most exchange requires KYC (even crypto to crypto) because they're afraid government will fine or shut them down. Oddly enough, some of them don't reveal their real identity too. Which is kinda saying something like, "hey I know you, but you don't know me. I'll take your money away after this".

Let's just use atomic swap if we want to trade crypto, no KYC (at least it should be) at all.

herurist

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Quote from: Abiky on January 23, 2019, 06:33:25 PM

Do you think it's necessary for a crypto-to-crypto only exchange (like Shapeshift) to require compliance with KYC/AML laws? AFAIK, cryptocurrencies aren't subject to the control of governments, since they were designed to eliminate middleman. Also, they're not considered legal tender and real currencies (unlike Fiat currencies like the USD).

Because of this, I wonder why governments are requiring KYC for crypto-to-crypto exchanges if cryptocurrencies are not issued or controlled by a central authority? Of course, this would be extremely necessary to implement within fiat-to-crypto exchanges, but I don't any reason why it’s necessary to enforce KYC/AML on crypto-only exchanges.

Can someone enlighten me about this?

KYC is only one way to know that your customers is human not bot, second thing is if something wrong happen ( specially with law ) there's proof to show who the player. KYC not easy because not all of us can accept it and scare if their data used for another purposes by exchanges. I believe many exchanges already comes up with no KYC, take one and do your activity.

bitcoin31

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For me Im KYC is good because in specific way. Like the bounty hunters who cheated in one campaign. But for me because I want security for my self so I don't like KYC if they inplemented to cryptocurrency. We have rights to hide our information and Identity. Im not against to KYC but in the other way I thinl they need to set that and they need to study where they implemented KYC and not.

Abiky

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Quote from: bettercrypto on January 23, 2019, 07:19:47 PM

I thjnk the purpose of KYC is to trace every transaction. Traceable transaction can be used to detect any price manipulation. We know that pump and dump are very common here in cryptocurrency. They used KYC to prevent any pump and dump. Now, for some traders and investors, they don't like KYC that exposed their identity. So my stand here is neutral as of now. I still need to check further the pros and cons of KYC.

KYC laws could be both good and bad, depending on the situation. For money launderers and criminals, KYC is good to help track and stop such individuals. However, if you're looking for privacy, then KYC laws are a bad bet. This applies specially to crypto, whose main purpose was to eliminate middleman. Bitcoin and other cryptocurrencies were designed in a way where it's not required to give personal information to use them. By requiring KYC on crypto-to-crypto exchanges, it greatly defeats the purpose, IMO.

I believe that the fairest approach would be to apply KYC/AML laws to exchanges that trade Fiat vs crypto, instead of crypto-to-crypto exchanges. Sometimes I wonder whenever atomic swaps would require to comply with KYC/AML laws, as governments worldwide see their true potential. Undecided

Quote from: Agapelove on January 23, 2019, 07:41:54 PM

As of now, a lot of traders don't prefer KYC in their cryptocurrency transactions. And I'm not sure if most of them are in favor of having KYC in exchange of a more secured transactions or systems. For me, KYC is necessary for the ones who are putting up crowdfundings. But, for the traders, I don't think it is necessary.

Yes. It's quite troublesome to go through all the process of KYC just to get into trading. I believe that KYC is well-suited for ICOs and crowdfunds, than crypto-to-crypto exchanges, IMO. I guess that we'll have to figure out how everything unfolds in the future, as governments try to apply proper regulatory measures for the Blockchain industry.

Agapelove

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As of now, a lot of traders don't prefer KYC in their cryptocurrency transactions. And I'm not sure if most of them are in favor of having KYC in exchange of a more secured transactions or systems. For me, KYC is necessary for the ones who are putting up crowdfundings. But, for the traders, I don't think it is necessary.

bettercrypto

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I thjnk the purpose of KYC is to trace every transaction. Traceable transaction can be used to detect any price manipulation. We know that pump and dump are very common here in cryptocurrency. They used KYC to prevent any pump and dump. Now, for some traders and investors, they don't like KYC that exposed their identity. So my stand here is neutral as of now. I still need to check further the pros and cons of KYC.

Abiky

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Do you think it's necessary for a crypto-to-crypto only exchange (like Shapeshift) to require compliance with KYC/AML laws? AFAIK, cryptocurrencies aren't subject to the control of governments, since they were designed to eliminate middleman. Also, they're not considered legal tender and real currencies (unlike Fiat currencies like the USD).

Because of this, I wonder why governments are requiring KYC for crypto-to-crypto exchanges if cryptocurrencies are not issued or controlled by a central authority? Of course, this would be extremely necessary to implement within fiat-to-crypto exchanges, but I don't any reason why it’s necessary to enforce KYC/AML on crypto-only exchanges.

Can someone enlighten me about this?

Topic: Is KYC necessary for crypto-to-crypto exchanges? - page 2. (Read 233 times)