Topic: Isn’t KYC anti-ethical to Bitcoin? - page 4. (Read 846 times)

The bitcoin in its initial premises remains the same, nothing has changed, it is a characteristics of bitcoin to be able to be anonymous to a certain point or at least without kyc, today it is an option to choose that situation.

Actually, there are ways that can help you to stay anonymous, but it will require a lot of effort, accuracy and it may become more expensive. You can use mixers and some private chains such as Monero. I know that even these technologies are not a guarantee as for now, but it least it will help to be more anonymous. What comes to KYC, I go around it, so I use exchanges and platforms that don't require it.

KYC defeats the purpose of bitcoin, yes. Though with the current state of developments surrounding cryptocurrencies, and the legal framework existing to cater them, I can say that there's not much we can do about KYC. There are still no-KYC platforms though, but they impose a certain limit on the amount you can trade/buy with them, and that sucks for the most part.

Expect more KYC in the future when the governments figure their shit out, though you can always count on people to go against this amd establish their own decentralized, no KYC platforms.

"Anti-ethical" is a strange choice of words, and something that is not ethical is usually called "unethical" or "immoral". KYC is against the values that Bitcoin represents - self-sovereignty, control over own money, avoiding trusted third parties and their risks. But at the same time, control over your money means that you are free to hold your bitcoins on some custodial wallet that requires KYC. It's not a good idea, but you are free to do it.

This probably became one of the hindrance for mainstream adoption as well. The narrative on BTC before big personalities and institutions came into the picture is black market or dark web since transactions on Bitcoin network are private. Common people won't buy and use it since they are scared to be involved or associated with illegal activities.

From an individual perspective it's anti-ethical, but looking at the big picture it's not, because we live in centralized countries ruled by centralized entities. To be allowed inside these socities, bitcoin needs to be adapted to the local rules, like anyone and anything else.

Furthermore I must say regulations such as KYC aren't totally bad, although I personally don't like them and wouldn't like them to be necessary. However we need to be realistic and confess KYC procedure helps authorities fight illegal activity easier and crypto businesses to stay legit as they have a compromise not only with their customers, but also with the local laws of the territory where they operate from.

Well, there's nothing new with all these exchanges as they always follow what the government told them. And i think they are just doing what centralized exchanges should do. And as a trader, if you want to keep your privacy, then you have all the choices you want. There are still some good exchanges who are not requiring KYC. But we can't deny the fact that maybe in the near future, we can no longer see exchanges who are not asking for KYC as most of the exchanges nowadays are becoming centralized. So better get used to it.

It is not hard. If you don't like KYC, you can trade it on DEX such as Pancakeswap or Uniswap. KYC is only required for CEX, they use KYC for security purposes. I think we cannot blame them, they have the right to apply KYC. I think they are not trying to kill the anonymity on Bitcoin, they just ensure no problems on their exchanges. By applying KYC, they fight money laundering and fraudsters.

Unfortunately, we can't avoid this KYC now. Because for local exchanges or other crypto businesses to be legit, they need to be under the government's approval.
And since they need to implement the AML laws, they need to know the identity of their clients, and one way, is really require their KYC details.
So even if we say it is not the original purpose of btc, if we want adoption, we can't avoid this to happen.

Whether we like it or not, it certainly comes that all exchanges and even P2P transactions will ask KYC. As the more scamming and hacking incidents happen, the more it pushes through and we started to feel it now. SEC will probably set strict rules and regulations in regards to KYC and live no chance to keep anonymous. But if this will be the solution to move fast the adoption, I guess, it needs our support as well.

I don't think, I'm close-minded in my speech? Everyone can buy his first BTC without a third party. The majority prefer to use an exchange, or anything similar because they can do it easily online as 1,2,3. It's about convenience, yes maybe, but it has a cost.
I don't know if I shall say they're lazy, don't take the time, or are not well informed but you can truly purchase BTC directly peer to peer.



And that's why I replied "not true" because it isn't. But for the same reasons above, people don't want to spend time looking at how to do it.

How many of us are dealing without a 3rd party, whenever it's to buy, sell, or simply live the crypto life? We don't do any type of magic. By using a third party, there is also a long-term effect. Since people use such solutions, this is exactly why we see more and more restrictions of various kinds (laws, AML, or other things).

Honestly, people talk a lot about decentralization and privacy, but they're the first to use centralized platforms and give them their personal documents. (Isn't it funny?)
The newbies entering the crypto world then think it's how it's work and how to do it. While in reality, it's not true. We should rather show them the true road of Bitcoin.

What's the sense to buy a decentralized currency but to use a centralized platform. Better to keep using fiat and your bank account, your debit card, and your cheque.

Ah, I know the answer. Follow the money.
It's to speculate and to make cash.

It finally shows people are interested only in speculation and not really in the ideology behind Bitcoin.
Sad but true.

In every setting, a certain sacrifice is needed before the mainstream or adoption happens and this is something that has been discussed some times ago on this forum. However, it was the increase of crypto theft that make SEC to introduced KYC/AML to the exchange, and every exchange site that wants to keep operating must abide by the command.
Despite that, it's not hard to buy BTC without KYC but you have a price to pay for your anonymity though.

I think that's a little bit closed-minded. Sure, transacting by using a third party definitely goes against the “ideology” of this innovative technology, but the thing is that you have to buy those coins from somewhere.

You may choose to not leave another one hold them, but you need an exchange to accomplish your purchase. The great downside is that you'll have to hand out this personal information in order to get your coins. So, you're already starting eponymously.

I think what they say is the transition from bitcoin to fiat. That a third party is required.

Right. Since they are centralized, so they are bound to follow the rules made by the government. For me, if its just for security reasons, then i think there's no problem about that. But knowing that we are giving our personal identities, then the essence of turning into bitcoin so we can be anonymous will already be lost. Or does it really matter nowadays? Maybe for early adopters here, yes it is, but for newcomers i doubt if they are still thinking or even affected by it. As long as we can gain crypto, well that's all that matters.

It was inevitable and logical if you really think about it. I think that cryptocurrency has many useful purposes, however you'd have to be blind or ignorant if you expected criminals not to abuse it eventually. The average person is safer in the long run if you're able to see inputs and outputs. I don't frankly see much importance in anonymity unless you have something to hide and the majority of Bitcoiners will be working with traceable funds anyway. If you're trying to withdraw money after a large increase in value then it's fair that you should pay any local taxes that might be due because they help maintain the society that you're in. That generally leaves people who are trying to clean or move funds that do not belong to them into fiat currency and adding KYC actually benefits authorities in pursuing this type of thief.

Yes.
It's all due to government restrictions and the exchanges are just following what the government mandates them. As mentioned, you will still be able to find some ways of doing it anonymously. But are people would care about what's being proud of by the early bitcoin folks about anonymity? What matters to these days especially to the new investors is bitcoin itself is an investment and that's it.

Agree on this one and thanks to government on centralizing on everything that deals with cryptocurrency specially with Bitcoin and that do really sucks big time.
It might not be ethical but what can we do? Aside from p2p which is risky to do so we don't have any options but to deal with those platforms or
exchange on where we could buy bitcoin.
The only way to make yourself anonymous is to make use of those mixers or changing up wallets.

Everyone talks about privacy but the point is not only about privacy, giving or not your personal info. It's also about the fact that you use a 3rd party to make a deal/transaction and that's exactly what Satoshi wanted to avoid.
A transaction from Alice, directly to Bob. Not Alice sends a transaction to ABCDcompany that checks the payment and then forwards it to Bob after checking, again, some info on Bob.
ABCD company can be a bank or any financial institution, an exchange platform, a person acting as a middleman,...


This.
It could be probably better to use the term "against the ideology" but I agree with you on protecting their business. But that's not as if we didn't have any alternative to centralized platforms. The person using such are simply people who don't really give a fuck to some part of the ideology


Not true.
banknotes can be anonymous. Gold, and other metals too

It's hard to purchase a crypto but once you are into cryptos doing transaction in Cryptos only it's not really that difficult to maintain this pseudoidentity, I personally feel that this KYC thing is somewhat necessary too because of scams and hacks that are happening around these days, and pseudo identity isn't really a very big requirement for 80% of the people, they are pretty okay with anyone knowing about their identity online and where they pay.

You need to do KYC when you are converting BTC to fiat or vice versa as when you are dealing with fiat, government laws would come in. If you want to trade BTC without doing KYC you can use DEX or any P2P marketplace which dont need KYC like Bisq. But I dont think so, KYC is anti-ethical to BTC as BTC was supposed to be mined and traded among other people as currency, not to traded for fiat currencies.