Topic: Is kyc verification dangerous? (Read 375 times)

Not really, people who are afraid of KYC verification should realize that unless they are living in the woods off the grid type of life and screaming "they are all watching us!!!" with no tech, then I am sorry but your information is already shared.

Every time you use your phone, every time you use your cards, every time you fly, basically every time you do something that requires you to show some sort of ID, that means you are already in the open and government can find you. Hell USA found Saddam in ditch in the middle of a desert. So do not worry about your KYC, you can share it and it can even be public, and nothing wrong will come out of it.

Exactly, now imagine the stolen ID is yours.

Seeing from various perspectives is actually a problem in itself, this will involve trust in the service that requests your ID. Let's say you're trying to prove that you're an honest guy, but who are you dealing with?
We are never far away from the vicinity of criminal activity, all kinds of unexpected things can happen. Hiding ID doesn't mean we are perpetrators, it's just that we don't wanna be victims.

These sites are obligated by European laws and governments to acquire their customers' information, but they are not protected by them. The issue usually isn't the websites themselves; Binance is unlikely to use that information against you. Some others may do that as well, but I find it unlikely to happen. However, a possible scenario that has occurred on websites or even exchanges is finding a loophole in the platforms and acquiring your data without your consent with the risk of using it for malicious purposes. KYC itself isn't as dangerous as we describe it, but the above scenario is.

Until the gov decides to ban bitcoin, or impose some new tax on unrealized capital gains, or a million other things it could do. And they know exactly who owns bitcoin, so they would be coming directly to your doorstep wanting to have a chat with you.

My question to people who like KYC is why risk your future when you know how historically governments tend to want to limit the freedom of their people?

There are still ways to buy bitcoin without KYC. And there are still exchanges that don't require it. I highly recommend to buy some anonymous bitcoin while you can.

But anon bitcoin and hold it. You can still use your KYC bitcoin but anonymous bitcoin might become more valuable one day just because of the anonymity.

I'd personally pay a little more for mined bitcoin that hasn't been traded on an exchange, and, I'd pay more for older mined bitcoin than newer mined.

Too bad there exists no area where people can just meet each other IRL (in my area) and buy or sell bitcoin. Everyone in my town exclusively wants to buy and no one is selling.   

KYC is the most dumbest thing that's ever created that's related to cryptocurrency.
I mean we all want privacy as much as possible right. The problem right now is that, if we really wanted to buy some coins, we need to do KYC in various exchanges. I don't know if there are some exchanges (aside from DeFi) who aren't doing KYC for their customers.

As much as possible, we don't like KYC, but it's required and will be required if we really want to buy and sell cryptocurrencies. TBH, I've also done KYC in Binance just so that I can buy certain cryptocurrencies. I don't like it, but it's needed in order for me to use their other services, and there's nothing that I can do. Yes, it's dangerous, but is there other way for us to use a particular platform without sharing personal information to them?

In the end, it will be a choice between just sharing your personal information, or not using the platform at all.

Yet if there is nothing to hide, why it would be? Couple years ago in UE (especially eastern countries), companies, especially para-banks let people borrow money just by creating account and submitting ID photos. There were tons of scammers that had used stolen IDs just to get money and withdraw (with the help of poles, i.e. people who did not know that they were doing something wrong) in cash. After years of court cases, UE implemented a law that prevents such issue to happen again, (and if do), companies are obligated to pay enormous retribution for even ALLOWING that to happen. So at this point, as I'm member of country that is a member of UE, I do not see anything that could go wrong way by providing ID.

That is one opinion, you can take or have your own view on KYC it's up to you. Crypto is a separate entity from services that basically do not require KYC.
For crypto companies such as exchanges will not take the opinion "KYC is dangerous" because they have interests.


Yeah, several scam threats, the trigger is a data breach which is then sold on the black market.

Actually KYC verification has become an obligation in using sites that have high security and have been protected by the government, but KYC can also be dangerous if we do it on unofficial sites and they only use our data to commit crimes, so we also have to be careful in doing KYC if the application we use does not have special protection then do not try to give your personal data, and very many oknoms commit crimes by collecting KYC data for the sale of data, but the government is very concerned about the problem so if it is needed then never hesitate to do KYC.

What do they do to assure you that your information will not be sold? I don't trust those commitments, we don't know what they're doing with our information. If you accept KYC as a good thing, it is like agreeing to let the government control and regulate the market, then we will lose our freedom completely.

I also don't like KYC very much because, to tell the truth, in my country, even banks sell customer information, I am often bothered by real estate, forex, and securities organizations. But I can't stop using banks, nor centralized exchanges, because I also trade often, being a trader with almost no options. In general, we have to accept privacy trade-offs when using centralized services, and that is up to each person.

Actually, KYC is okay as long as the third party requesting it can protect it from hackers and ensure customer data is safe. But we have heard of many cases of selling KYC data from customers due to hacking on several websites, especially online shop websites where a lot of the data is collected and traded on the dark web.

And related to the KYC on the exchange because local regulators supervise the exchange and want to know the customers who use the exchange to trade. Third parties, in this case, exchanges, are responsible for protecting their customer data from hacking and that is why exchanges must be able to ensure it is in safe hands.

But I miss the old days when exchanges didn't require as stringent requirements as they do now. But that is in the past and now and in the future, maybe KYC will be more strict and we have to accept that if we want to use a centralized exchange.

Man, you just answered your own question. However, there's more risk in giving out your vital personal information than preventing all those criminal activities that was mentioned in the OP.
KYC are indeed an inconvenience on the customers end, as much as these exchanges does not want it to be implemented, but the government are requiring them to implement it on their platform, otherwise they'll put an end to your operation if they find out you're not following the government rules and regulations.

Well, there are always the risk of the site being hacked and all the KYC data being stolen. Then that information can be used to sign up for other services that can be used in crime or even scams that might implicate you.  

I know there were a major security breach at "Ledger" awhile ago, where people's personal information were breached and the hackers used that information to phish some of those users. (individually targeted)  

Of course it's dangerous, in the hands of the wrong right people they could use this to reset access to some of the platforms that don't have extra layers of verification holding your funds or personal data like credit card information etc and this could be a costly mistake in the long run as they could wipe your accounts dry.

Back in the day KYC was not a thing not until crypto interest increased and with this mearnt users trying to get more than they were allocated for in bounties, airdrops etc and to ensure no cheating was involved KYC was born, though some platforms carry out KYC as part of their regulatory compliance!

Too late, kyc not going anywhere.

Most of us don't like it but sometimes this could be the only thing that could save your coins from unauthorized access.

It's a 50/50 thing, if the KYC isn't the type that requires some kind of biometrics sometimes the system can be beaten... Its like those YouTube videos showing a phone being unlocked with a photo and not actual human

Honestly it's all about due diligence and how bad you want to access the goods and services being provided.

like me personally, when asked to do KYC, of course, I question the security of personal data, as long as it's not misused or traded, maybe there won't be any problems in the future, but there are lots of concerns, especially since we're in the digitalization era, and it's difficult for us to defend ourselves, like the law in a country where the procedures are clear, therefore it is necessary to be careful, to check first that our ID is safe

Indeed KYC is not as bad as people say, if it were really bad, it wouldn't be used to this day. But it only benefits the government more than the users, and another thing is that our world has changed, instead, it is KYC to ensure avoiding fraud, and money laundering from criminals. Nowadays, companies and organizations, especially financial companies, misuse the identity of users for profit, they are willing to sell our identity to advertisers and the black market...It was that behavior that made KYC dangerous for users, so people started to fear KYC.

Yes, this is correct. The only problem that I can see is how they make sure that the information that we have provided is secure and will not be compromised or sell our information to unknown people since it can be used to make crimes or suspicious activities. I guess that some people may not feel comfortable sharing their information and avoiding exchange or other platforms that are required to provide personal information.

Ha, they sure tricked you! It's not right for businesses, companies, exchanges etc to get access to the data of every individual that interacts with their business just to screen them. It is up to law enforcement to have the necessary tools to disrupt criminals without compromising innocent people's privacy by forcing them to submit sensitive information about themselves to third parties. KYC is a is disguised as "a tool to counter money laundering and criminals" but in reality it allows any business to collect the sensitive data of innocent people, which not only takes away innocent people's right to privacy but also opens up more vulnerabilities to their identity and sensitive information every time they submit it to a third party.

Yeah in a perfect world I guess but it's not just about hacks, it's about governments trying to be like Big Brother watching everything. Hell, I'm against it on principle of "I don't want anyone knowing how much money I have because it's none of their business!"
 
In fact, it's not even about "safety" it's more so about control. All this KYC stuff is the result of 9/11 'paranoia' in our government, and other people in our government used the opportunity to push for less privacy. It's all hogwash. We don't need KYC, it does more harm than good. Bitcoin is supposed to be like cash, a digital payment method, it's not supposed to have a name to every wallet. Some anoninimity was intentional by design. Anyways, there will come a time in which it will be impossible to buy non KYC bitcoin, and probably no way to erase your paper trail as I predict one day XMR will be on the chopping block... so I suggest everyone reading this do it now while you can.

In a perfect world we could trust that it would be impossible for governments to do bad things to its own citizens, in a perfect world governments would not even want to control its citizens, the government would promote individual freedoms and love granting liberty to its people. The US government is turning into the Eye of Sauron.

KYC is not bad because it’s the way to determine the people background. It’s purpose is to detect any fraud that involves money laundering etc. It’s just bad on crypto space since most of the project here doesn’t have the capacity to safely store the data of their consumers that’s why undergoing KYC on crypto projects is dangerous but KYC purposes itself is good if you are a law abiding citizen since your privacy is safe if the company handling it is license and trusted due to the confidentiality clause for the KYC procedure.