Topic: Kyc for accounts or wallets (Read 460 times)

for bitcoin storage wallets I have not found registration using KYC because they have implemented a special security such as prasa and privatekey, but for accounts on exchanges of course they will ask us to do KYC because every exchange they must know every user so that when fraud occurs when making transactions they will be easier to find the perpetrators, Unless they are hackers who hack every asset that exists, so it all has its own purpose even though we have to use our personal data, so it has all become a rule for user security.

He misunderstood about wallets and online accounts which can be accounts on centralized exchanges or on wallet provider platforms.

If you use a third party wallet provider service and that wallet is custodial, they can ask you to do KYC. If you don't do KYC, you have no option than leaving their platform and abandon that wallet.

Nowadays, it is more confusing as some wallet providers eventually deploying new products, they are like some in one, wallets and exchanges but if they are a centralized service and their wallet is custodial, KYC is very possible to be enforced.

Like Blockchain.com wallet that was only a wallet but they expanded their service and you can trade on Blockchain.com too.

Custodial vs. Non Custodial Wallets - "Not your keys, not your coin" Explained.

I think you are mistaking wallets vs exchanges.

Based on my experience, online wallets do not ask for any KYC documents. They only serve as a "wallet" for you to store your BTCs and to transfer to another wallet or a designated exchange.

Exchanges, on the other hand, are websites or applications that lets you use your BTCs for different purpose. You can also transfer your BTCs to another wallets but the beauty behind some exchanges is its convenience. You can exchange your BTCs to your local currency or even transfer it to your banks or other modes of storage.

This is the reason on why majority of exchanges ask for KYC documents due to the features they offer, which are not offered on wallets.

The wallet does not have a KYC but the exchange has. Seems like you are referring with the exchange in your statement. Exchange use only to change your coins or fiat currency into crypto currency and this not serve as a wallet people want to use the exchange as wallet so they can bought immediately a coins they want once get into the dip but at the end we can not deny the exchange can do anything they want and if they want to close or rug they can take our funds. Reason why we didn't encourage the exchange as a way of wallet. You don't have the private keys.  It's their money not yours until you have the full control of it.

I guess that's why OP confused. Normally there is no KYC process for Bitcoin wallets but centralized exchanges started to develop apps that enable to buy/sell/trade coins so OP think those are wallets as well.
You don't need to do KYC to use crypto-currencies unless you are in a centralized system such as Binance app. Newbies should learn how to use crypto-currencies and know which exchanges are secure before giving their ID's on apps.

A good open source wallet should never ask for a kyc and should always give you the ability to safely store your private keys.  The kyc is part of services such as exchanges or custodial wallets that should always be avoided by a good Bitcoiner who knows how the protocol works.

Some wallets require KYC, but not for holding and receiving coins, obviously. It's required for buying or selling coins directly in the same app.

I will never use a KYC wallet for my main bitcoin hoardings. I use wallet.dat with a passphrase on Bitcoin Core. Good luck getting me to KYC those coins. I understand exchanges requiring you to do it due to regulatory pressure but always hold your own coins in self custody (nobody else should know anything about those coins).

Little miss understanding from OP topic and regarding his account level we are understood about his mistake can't differentiate between wallet and exchange account. Actually wallet is not required for KYC like using trustwallet, metamask and many kinds of wallet exist right now. But need or required KYC for exchange market account like Binance, Huobi and several local exchange market, but for the beginner if worry about their document publish due upload to exchange market for KYC still have exchange not required for KYC like Kucoin.

Have thousand way for beginner if difficult for KYC their exchange account, check with exchange without required and sell crypto assets trough third party are trusted without directly withdrawing to bank account by local exchange market are required with KYC.

I have never heard of such KYC wallets too but it is only possible to do with custodial wallets. Like you don't have keys and if you use their wallets, you have to follow their requirements like using centralized exchange accounts.

Wallet KYC is impossible with non custodial wallet as you can create your wallet offline, airgap, nobody else knows what private keys you have.

Why KYC is extremely dangerous – and useless

My thoughts exactly after reading through the thread for a while and still kept seeing the same idea as in quote repeated across the write up!

OP isn’t really placing a significant difference between wallets and exchanges, sort of interchanging ideas between them both. I don’t know of any wallet that requires KYC to operate. They don’t even require you giving it a username. Naming your wallet is possible on some wallet apps but, it’s largely optional.

Should you be storing or hodling your coin on an exchange, I won’t say your doing it wrong but, hope your believes help you.

Two sides that are interrelated and cannot be avoided for an account then to do WD you still have to have KYC. Indeed, as you mentioned above, it is very important for individuals to maintain private data, even if it's just an ID card and that's still not bad. If the platform that we have chosen is KYC which is requested for a passport, wow, that's a different story.

I have never heard of any kind of wallet which requires KYC?

Not only would that be completely against the point of decentralization, it would be a wallet that nobody with a brain would want to use. Nobody wants to give away their government documents away so freely. Remember, those documents can be used by identity thieves to take out loans in your name or do worse things. Even KYC exchanges are nowadays frowned upon and rightfully so. We have absolutely no need for centralized platforms for cryptocurrency. The only use for them is convenience in buying and selling. But is that convenience really worth giving away your sensitive documents?

I think everyone should stay away from KYC. There are better alternatives.

I think you are referring to a centralized exchange where one have to pass kyc in other to purchase and transfer bitcoin in a larger quantities but there are some of them that do not need kyc except you want to trade on Future, margin or even p2p trading. All these required kyc for you to be able to trade freely. Cryptocurrency wallet such as Electrum or Trustwallet doesn't need any of the kyc you made mention rather we should be very careful given out our details to some centralized exchange. I think more reputable people already said their views.

I can't imagine if, in the future, hardware wallets, paper wallets, mobile wallets, and web wallets will ask their users to do KYC because that would not be in line with the idea of Bitcoin, which is anonymous. Crypto users will reject it and look for wallets that don't require KYC. Maybe what @OP meant was doing KYC when using a wallet on a centralized exchange, which has become normal for centralized exchanges.

For this reason, Bitcoin users are better off using separate wallets from exchange wallets to store their Bitcoins so that it will be safer and easier to control. @OP meant to warn us all always to be careful where we store Bitcoins and other cryptos and if we don't want to do KYC, keep Bitcoins and other cryptos in personal wallets.

One thing @OPO needs to understand is that if you use a centralized exchange, you have to do KYC even though there are still exchanges that don't ask their users to do KYC but later, the exchange will be required by the regulator. And if you don't want to store your crypto on an exchange, you can use a hardware or software wallet. It will be safer because you don't have to worry about hacking problems unless you can't store the wallet properly.

That can't happen. Government can ask us to hand them over all our previous, present and future addresses so they can register them under our name. There's Tor for that. Now obviously, there's another question.. how many would risk not listening to the government? I think enough people. If the moment comes where you're obliged to tell the government which addresses you own, I'd imagine there are many more things they'll try to break and monitor such as privacy and other personal stuff.

I'd 100% be using Tor to avoid such regulations because by then we're gonna be under a very scary and creepy governance. Orwell would be the closest thing you can get to that. So who cares anyway? It could mean "freedom" would be less free than prison, lol.

Back to the subject, they just can't impose KYC for wallets. Even if they try, remember Electrum and other similar wallets are open source which means a no-KYC fork would appear immediately. Worst thing, we start going back to using previous versions of the wallets. KYC can't be imposed on the network, they can only try to scare you to stop using BTC the way you should. And they'll probably try it, but it'd never work - remember BTC was initially created to be a peer-to-peer currency. If such anomalies happen because of the government, we'll just go back to what BTC should've been anyway.

It feels like the regulatory authorities and us are stuck in a perpetual game of cat and mouse. Bitcoin was designed from the ground up to be a completely decentralised and anonymous digital currency. Still, here we are, going through the motions of KYC checks for cryptocurrency wallets. I don't like to admit that, but I think you're probably right. Given the worldwide push for rules, it may not be long until wallets also require KYC.

It seems excessive for exchanges to demand confirmation of funds, right? But they're the ones attempting to follow the rules so they don't get in trouble with the authorities. It's difficult to predict how government inspections will go. Perhaps they are taking place unseen to the public eye.

But I think we as a society have a duty to resist these intrusions into our financial privacy. Crypto was supposed to be our safe haven from these oppressive restrictions, but now it may be one of the first things to go.

Wallets such as hardware wallets, paper wallets, mobile wallets, web wallets etc does not require KYC. You are only required to write know your seed phrase for safekeeping. You get to perform KYC when you are using a hot wallet which are centralized exchange wallets.

The wallets I mentioned above do not have terms and conditions, it is only centralized exchanges that gives you terms and conditions. Op, I can see a lot of gap in your knowledge. Instead of creating topic like this and dishing out advice, I would advise you take some time to read more and be equipped with a lot of information about Bitcoin and other crypto-related stuffs for your own good.

Wrong, Bitcoin is pseudonymous not anonymous. Although leak of privacy can put a danger, but you need to know if most of people not consider privacy is important. Take a look with how many people are use centralized exchanges, how many people send their KYC on shitcoin project to get airdrop, how many people are posting their luxury lifestyle in their social medias etc, if they consider privacy is important, they wouldn't do that.

It's up to every person to consider privacy is important or not.

This makes good security of KYC and stops duplicate bad steps from happening. But you be careful to send KYC or it's an Airdrop. your data can be an option for them to make you lose in the future.