KYC and identity theft risk - page 2.

BartS

sr. member

Activity: 980

Merit: 255

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

Hello guys.
I'm very very far from making some kind of cash-out, but i was just wondering... How do you handle the thing of being forced to give your personal informations to exchanges to be able to convert your cryptos in fiat and transfer them on bank?
For how i see it there it's a very high possibility (if not certainty) that exchanges are selling the informations given by their costumers... and anyway there is alway the risk that they get hacked.

Knowing this, why you handled your ID and documents to exchanges? making some money it's enought to compesate the risks for you? do you use some alternative way to cash out your crypto?

For me, giving bank coordinates should be enough to allow people to cash out... The worst that can happen in that way is having your bank account hacked, but in these cases the banks give some warranties and some kind of protection/indemnity...
I don't see the necessity to provide an exchange with photos, ID, bills etc...

What do you think? do you think this system will change in the near future? what alternatives do you have?

The issue here is you are using their platform and when you do that you need to follow their rules, this is the same problem with banks we can complain all we want but if you have your money in a bank then you need to follow their guidelines, you only have two options, become a long term holder of your coins and wait until you can use them directly in your everyday life or use decentralized exchanges and then cash out to fiat using a p2p platform.

longwintershere

jr. member

Activity: 224

Merit: 1

“Revolutionizing Brokerage of Personal Data”

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

Hello guys.
I'm very very far from making some kind of cash-out, but i was just wondering... How do you handle the thing of being forced to give your personal informations to exchanges to be able to convert your cryptos in fiat and transfer them on bank?
For how i see it there it's a very high possibility (if not certainty) that exchanges are selling the informations given by their costumers... and anyway there is alway the risk that they get hacked.

Knowing this, why you handled your ID and documents to exchanges? making some money it's enought to compesate the risks for you? do you use some alternative way to cash out your crypto?

For me, giving bank coordinates should be enough to allow people to cash out... The worst that can happen in that way is having your bank account hacked, but in these cases the banks give some warranties and some kind of protection/indemnity...
I don't see the necessity to provide an exchange with photos, ID, bills etc...

What do you think? do you think this system will change in the near future? what alternatives do you have?

choose the most trustworthy exchanges who don't need to be selling their sensitive data to secure profit. I doubt the company like Coinbase would be selling stuff like this. Some leaks can always happen, almost impossible to prevent that.

alyssa85

legendary

Activity: 1652

Merit: 1088

CryptoTalk.Org - Get Paid for every Post!

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

Hello guys.
I'm very very far from making some kind of cash-out, but i was just wondering... How do you handle the thing of being forced to give your personal informations to exchanges to be able to convert your cryptos in fiat and transfer them on bank?
For how i see it there it's a very high possibility (if not certainty) that exchanges are selling the informations given by their costumers... and anyway there is alway the risk that they get hacked.

Knowing this, why you handled your ID and documents to exchanges? making some money it's enought to compesate the risks for you? do you use some alternative way to cash out your crypto?

For me, giving bank coordinates should be enough to allow people to cash out... The worst that can happen in that way is having your bank account hacked, but in these cases the banks give some warranties and some kind of protection/indemnity...
I don't see the necessity to provide an exchange with photos, ID, bills etc...

What do you think? do you think this system will change in the near future? what alternatives do you have?

You have two choices here. Either you can cash out slowly - that means not going for full verification, but the lower tiers that only require a name and address and bank accounts, but which limits how much you can take out each month. Set up several of these types of accounts on several exchanges, and then patiently cash out over a period of months.

The second option is to sell in person, which is risky.

Joel_Jantsen

legendary

Activity: 1988

Merit: 1317

Get your game girl

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

I'm very very far from making some kind of cash-out, but i was just wondering... How do you handle the thing of being forced to give your personal informations to exchanges to be able to convert your cryptos in fiat and transfer them on bank?

I don't use exchanges.There are a few p2p services which help you exchange coins without having to verify anything.Identity risk is a big problem and anti-bitcoin.

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

For how i see it there it's a very high possibility (if not certainty) that exchanges are selling the informations given by their costumers... and anyway there is alway the risk that they get hacked.

Not sure about 'hackers' but certainly government organisations.That's why they take the details in the first place,to track users.

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

Knowing this, why you handled your ID and documents to exchanges? making some money it's enought to compesate the risks for you? do you use some alternative way to cash out your crypto?

People are idiots.Most of the retards who sign up on exchanges are only there to earn money and don't give two shits about their privacy.

Samarkand

sr. member

Activity: 658

Merit: 282

Quote from: magneto on February 21, 2018, 03:27:20 AM

...

AFAIK, exchanges will actually try to bypass verification as far as possible and allowed. Because they know that they'll get a much larger following and user base by doing that instead of requiring strict identification.
...

In my opinion only the less legitimate exchanges (Bitfinex, CEX and similar exchanges) will try
to bypass verification as far as possible.

The licensed and regulated exchanges are actually pretty eager to conform to the expectations
of the regulatory bodies. E.g. exchanges like Bitstamp take KYC pretty seriously as anyone, who ever
had to fill out one of their KYC forms can confirm.

Besides, some exchanges are even acting in advance of passed legislation:
Japanese Crypto Exchanges Unite to Form Self-Regulatory Group

magneto

hero member

Activity: 1666

Merit: 753

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

Hello guys.
I'm very very far from making some kind of cash-out, but i was just wondering... How do you handle the thing of being forced to give your personal informations to exchanges to be able to convert your cryptos in fiat and transfer them on bank?
For how i see it there it's a very high possibility (if not certainty) that exchanges are selling the informations given by their costumers... and anyway there is alway the risk that they get hacked.

Knowing this, why you handled your ID and documents to exchanges? making some money it's enought to compesate the risks for you? do you use some alternative way to cash out your crypto?

For me, giving bank coordinates should be enough to allow people to cash out... The worst that can happen in that way is having your bank account hacked, but in these cases the banks give some warranties and some kind of protection/indemnity...
I don't see the necessity to provide an exchange with photos, ID, bills etc...

What do you think? do you think this system will change in the near future? what alternatives do you have?

AFAIK, exchanges will actually try to bypass verification as far as possible and allowed. Because they know that they'll get a much larger following and user base by doing that instead of requiring strict identification.

The government is who is requiring these documents. Exchanges are only acting on behalf of the gov's interest.

I don't see the need in providing ID to exchanges either, but for one reason or another, the government/exchange wants the exchanges to know who's doing the exchanges before anything can be withdrawn from the exchange. You can avoid this via p2p trading platforms, as others have said such as LBC/paxful.

enhu

legendary

Activity: 2492

Merit: 1018

I don't agree to all those mandatory requirement of sending documents and identification but there is just no other way for me to cash out from the tokens I have but to follow their rules and if they say there is the need for me to upload my drivers license then I guess I would do so as I don't also want to risk myself getting involve in exchanges with a user from localbitcoin.

timerland

hero member

Activity: 1526

Merit: 596

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

Hello guys.
I'm very very far from making some kind of cash-out, but i was just wondering... How do you handle the thing of being forced to give your personal informations to exchanges to be able to convert your cryptos in fiat and transfer them on bank?
For how i see it there it's a very high possibility (if not certainty) that exchanges are selling the informations given by their costumers... and anyway there is alway the risk that they get hacked.

Knowing this, why you handled your ID and documents to exchanges? making some money it's enought to compesate the risks for you? do you use some alternative way to cash out your crypto?

For me, giving bank coordinates should be enough to allow people to cash out... The worst that can happen in that way is having your bank account hacked, but in these cases the banks give some warranties and some kind of protection/indemnity...
I don't see the necessity to provide an exchange with photos, ID, bills etc...

What do you think? do you think this system will change in the near future? what alternatives do you have?

I do feel uncomfortable with handing over my ID with exchanges, which is why I don't really like exchanges which force you to verify yourself that much. However, sometimes it's the regulation of the countries. And yes, some of the big exchanges are indeed licensed exchanges in a country. So they'll have to follow the rules.

If you aren't comfortable either, then just don't use exchanges or even get a friend to do it.

If you're wiling to trade a 3-5% reduction in fiat payment for your privacy, then you can certainly find a lot of buyers on localbitcoins willing to take your bitcoins for that kind of price as well.

_bitnux_

jr. member

Activity: 147

Merit: 1

Quote from: warningsigns on February 20, 2018, 08:30:13 PM

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

I don't see the necessity to provide an exchange with photos, ID, bills etc...

I would give mine to a licensed and regulated exchange (Bitstamp, Coinbase, Kraken..) but not to one of those fly-by-night exchanges. Do your due diligence too. Don't give your documents to anyone or anything which has no track record of operational accountability and also to those which do not operate in jurisdictions that have solid and established data protection laws.

What make them licensed and regulated? they pay taxes? are they controlled like banks? how can we know that tomorrow bistamp will not disappear and sell all the info they have to some criminal or some kind of private organizations?
I agree it's not smart to handle your info to some shady or new exchange, but at some point you must choose one to cash out with.

At date, to which exchange would you handle the required info to cash-out? which one has enough regulation to be considered reliable at least as a bank? which one raises in you enough trust to make you know they will not use your personal info? or that at least they cannot disappear escaping from the law?

(lot of question i know and i'm sorry, just trying to understand)

warningsigns

hero member

Activity: 896

Merit: 1082

Quote from: _bitnux_ on February 20, 2018, 06:12:07 PM

I don't see the necessity to provide an exchange with photos, ID, bills etc...

The necessity stems from the regulatory requirement that they be and stay KYC/AML compliant. Banks want assurance that the source of funds being wired to them are from legitimate sources and are not being laundered. And because cryptos can come from anyone anywhere (even criminals) then an exchange's non-compliance potentially makes them a conduit or a tool to launder funds. When you convert the coins to fiat, then instruct the exchange to wire that money to your account, the money is given a legit facade. The missing link is where the coins come from which is why regulators want exchanges to positively identify people trading on their site.

The ID and utility bills story is the sensitive part. I would give mine to a licensed and regulated exchange (Bitstamp, Coinbase, Kraken..) but not to one of those fly-by-night exchanges. Do your due diligence too. Don't give your documents to anyone or anything which has no track record of operational accountability and also to those which do not operate in jurisdictions that have solid and established data protection laws.

_bitnux_

jr. member

Activity: 147

Merit: 1

Hello guys.
I'm very very far from making some kind of cash-out, but i was just wondering... How do you handle the thing of being forced to give your personal informations to exchanges to be able to convert your cryptos in fiat and transfer them on bank?
For how i see it there it's a very high possibility (if not certainty) that exchanges are selling the informations given by their costumers... and anyway there is alway the risk that they get hacked.

Knowing this, why you handled your ID and documents to exchanges? making some money it's enought to compesate the risks for you? do you use some alternative way to cash out your crypto?

For me, giving bank coordinates should be enough to allow people to cash out... The worst that can happen in that way is having your bank account hacked, but in these cases the banks give some warranties and some kind of protection/indemnity...
I don't see the necessity to provide an exchange with photos, ID, bills etc...

What do you think? do you think this system will change in the near future? what alternatives do you have?

Topic: KYC and identity theft risk - page 2. (Read 350 times)