Topic: Kyc for accounts or wallets - page 3. (Read 460 times)

One attribute they will make you learn in this forum is meekness and the ability to accept correction without offense. If you are here to learn then you should be teachable because that's how you will learn. Don't be offended when you are corrected because nobody knows all.

OP when you open an account in an exchange they give you an address. That address can be used to receive and send coins from or to other addresses. But you don't have control over the wallet that generated the address because you don't have the keys. The exchange keeps your funds so they might decide to release or hold your funds at any point. The exchanges are custodians of your assets because you don't have the keys. But when you have the keys to your wallet and no third party is holding them, you are using a non-custodians wallet. No third party is in custody of your funds. You should also know that there are closed and open-sourced wallets. The best ones to use are open-sourced wallets.

While software wallets whose source are verifiable and open-source are entirely safe to use but on the other hand hardware wallets such as Ledger require us to do KYC to use quite a few of their features and for receiving the wallet on the customer end. Some libertarians such as Lopp has went to greater extremes to own a house to receive hardware wallets and to do the KYC. Through this way, they should be able to maximize their anonymity thereby feeling safer from hacks which has happened in Ledger at the past.

I would recommend if someone is planning to own a large sum of Bitcoin, they should be opting out the Lopp's way of hiding one's identity as we can never be sure or trust centralized companies such as Ledger, Trezor or Keepkey with our information. When Ledger's email and address database leaked, many individuals who had purchased wallets from the website were contacted by scammers and were threatened in the process. On top of that if you really want to maximize your anonymity and be safer from hacks while dealing with large amount of bitcoin, it would be better to use open source OS's such as Linux too.

Nowadays storing seed words on cloud storages has been increasingly dangerous as the company providing such services has the ability to always work towards governments and seize our digital assets.

It seems that the original poster (OP) may not be familiar with non-custodial wallets, as he haven't mentioned them in their post. The main point of your topic is to avoid using custodial wallets altogether, which eliminates the need for KYC (Know Your Customer). Centralized exchanges and custodial wallets typically require users to submit their KYC information. It would be beneficial for you to expand your knowledge about different wallet systems.

Even the so called closed source crypto wallets don't ask for KYC verification unless the wallet company is also running a crypto exchange, I know about Luno wallet which is also a crypto exchange and it's centralized, since the wallet and the exchange are running in the one single app makes KYc verification important.

If any crypto wallet is asking you for KYC it's wrong, do not use such crypto wallet to store your asset, closed source wallets and non-custodial wallets are big red flags, something you must avoid at all costs.

if there will be kyc to BTC wallets like Electrum, users will definitely decline faster than they know. it would mean the team is compromised.
if its possible for the wallets to be compliant if the government mandates them, i think those close-source btc wallet companies will comply with what government asks. we are living in crazier times. who knows what could happen but for now, we are lucky to have no btc wallet that as for kyc.

The so called exchange accounts creation for thier users thereby being generated a custodial wallet makes it appears as if they are really wallet, but on a real sense they can be termed wallet under custodial wallets but we often refers to this categories as not wallet since they have the private keys in their custody to the assigned wallet even though the actually currency is stored on the blockc and not on the exchange account created.

Usually, it's only the centralized exchanges that ask for a KYC compliance but if it's with the typical wallet that we use such as Electrum, it doesn't really ask for a KYC.

Well, it's up to the user if he's going to be obliged and comply with these KYCs because if you don't. Your funds are going to be held and delayed in these platforms.

It's true that we should be the one that are holding our keys but upon transfer to those centralized platforms, we don't have it anymore.

I guess you really need to be clear in your post, or try to understand different kind of wallets,

url=https://bitcointalk.org/index.php?topic=5173370.0]Custodial vs. Non Custodial Wallets - "Not your keys, not your coin" Explained.[/url]

And as others have said, maybe you are referring to custodial wallet, like what you find in exchanges or any other services like gambling platforms.

My thought as well! I haven't come across crypto wallet that requires KYC before. It seems OP is mixing things up to confuse himself and the readers as well. It's really funny seeing newbie advising newbies but that doesn't matter anymore since some of these newbies accounts are being operated by some high rank members as alt.

Creating post is not actually a bad idea because Practice makes one to be perfect. Maybe OP finds it difficult to locate a thread that's a compatible with what he wants to say and decided to create a thread. Op, You should embark on research before you attempt to advice others.

Same here, but I think that the Op is confused about something here. Kyc(know your customer) is mostly used by exchanges or crypto accounts and not wallets. Using kyc exchanges sometimes is a choice that depends on  the individuals goal and specific use cases eg business purpose. and such for someone new to the crypto verse, the non-custodial wallets are usually suitable since you just want to store or hodl  cryptocurrency.

Since hardware wallets are expensive, it is sometimes adviced for users to use a non custodial wallets which require no kyc, and is less expensive. you just  have to download from legit source (play store, or their original website) and then install on your device with few mobile data.
It is not advisable to use kyc required platform as it puts your identity at risk. Here is a thread that explains fully why you should avoid kyc
Why KYC is extremely dangerous – and useless

OP, you should learn first instead of  advising newbies like you. Creating topics shouldn't be what must be done at your level,knowledge is what you need for you to grow. It is only centralized exchanges that asks for KYC and you should also understand the the wallet that you feel is yours on their platform is theirs because they are in charge of the private keys. Sorry for the criticism mate

KYC and Bitcoin wallet? To be sincere I do find this topic funny.

Op, you should start by researching the difference between wallet and exchanges... I guess what you read about or referring to is an exchange and not a non-custodial Bitcoin wallet.


Read my entire post, I made mention of "non-custodial"

Wallet account creation?.
If you need a wallet avoid platforms (exchanges) what I know about is custodial and self custodial wallet. Those that gives you full control over your wallet, you have your key and phrase and they are open source which their code could also be verified by other developer.

For security reasons we should avoid custodial wallets, checking their terms and conditions might be useless because they can be change them when ever they have your money under their control, so just avoid them even when they say no KYC, trusting a 3rd party with your holdings is a very risky thing to do.

Noncustodial wallets do not require KYC, he is referring to custodial wallets and custodial exchanges. Both are not even wallets, they are accounts.

Are there really any wallets that require a KYC procedure in order to be used?

Aren't you talking about accounts on exchanges that require KYC (like Binance - Coinbase etc.)?

According to my Bitcoin understanding Bitcoin is an asset that should be owned by an owner anonymously  now my point here is Bitcoin investors especially newbies should be very careful with wallets and crypto accounts that requires kyc for verification most newbies may be shocked or confused but the reasons are for your safety
 kyc puts you personal information and privacy at risk it also gives ability for your transactions to be monitored.
So please before making wallet registrations always read through terms and conditions as well as privacy policy
Or rather get a hard ware wallet especially if you have large amounts of Bitcoin or other crypto currencies

Part of the Bitcoin idea was anonymous identity of users
 so as an asset owner you should support this notion
DON'T FORGET TO KEEP YOUR KEYS SAFE MATE!!