What are the repercussions of failing to complete KYC on an exchange?
Not being able to use the exchange for one, or if you're stupid enough to deposit before verifying your identity, you won't be able to withdraw or trade with your money. At least that's what it was for Binance and most CEXs on the market. If you don't want to undergo KYC trade under decentralized exchanges instead. they won't get in your hair from the moment you sign in with them, and you can pretty much do everything a CEX could do, but don't go yapping about the lack of features cause most DEX out there's cut and dry, what you see is what you get when it comes to offering features and all that stuff. I wouldn't really suggest going for CEXs that are no KYC, cause more often than not they are shady as hell. 
Topic: KYC matter? (Read 835 times)
What are the repercussions of failing to complete KYC on an exchange?
Then you can never make a successful transaction like withdrawal or even deposits especially if you are putting a bigger amount. But if you chose decentralized exchanges, then KYC will not be an issue since everything in there does not require KYC, plus you will have all the access of your transactions without putting them at a high risk of losing. 
It is good to point to the fact that people should not leave coins on exchanges because any exchange can be hacked and because the person do not have complete control over his coins.
To the pointBut as I shared my thinking, you lose more than on just your cryptocurrency when you KYC and that exchange turns to scam. Scam exchanges double scam you by: stealing your cryptocurrency; stealing your KYC document.
hero member
Activity: 462
Merit: 767
Instant cryptocurrency exchange with own reserves!
KYC is not the ones that are dangerous but it is when someone steals it from you and impersonates you but we shouldn't worry as long as we know that we are using a very trusted platform with no or less history of being hi-jacked. And they definitely improve their security from time to time because it can affect them once something bad happen to them or to their customers.
Do you think Coinbase is trusted with the personal information? I thought it was. The reality is it is not trusted with personal information. They have a record of selling user information on the Darknet for $1 each. Coinbase had a third party to collect their user data, and that company sold users' data online. Later, Coinbase agreed with the accusation.
Unfortunately, I am unable to give you the source. But if you look around, you will find the news. But if you cannot find it, mention me here or anywhere, and I will try to find out the source to help you. So, it doesn't matter how trusted the platform is. The data is not secured.
There is no problem if you have not deposited your funds to the exchange, so it is a problem if you have deposited and want to withdraw your money, some exchanges require KYC to transfer to your bank account or your crypto wallet.
You will not be able to withdraw the balance there or any other features. There are some exchanges that before depositing the balance must complete KYC verification but some are not but at the end when withdrawing KYC it is very mandatory to verify.
I think there are still No-KYC exchanges and from some exchanges you can use. No-KYC Exchange Encyclopedia
This is the most concern of those who claimed to be non-KYC exchanges because when you deposit, they will never require KYC, but when you decide to withdraw your balance they will suddenly require KYC verification. Otherwise, those amount will never be withdrawn and will only stay at an exchange. But with clear KYC exchanges, every time you deposit and withdraw your balance, KYC verification will always be compulsory. I think there are still No-KYC exchanges and from some exchanges you can use. No-KYC Exchange Encyclopedia
hero member
Activity: 462
Merit: 767
Instant cryptocurrency exchange with own reserves!
If that exchange is not scam and does not plan to scam customers, they will announce their KYC policy change and give their customers enough time to decide one of two options:
- Withdraw all money, refuse to complete KYC.
- Submit KYC, finish it and use full service of the exchange.
- Withdraw all money, refuse to complete KYC.
- Submit KYC, finish it and use full service of the exchange.
Not only exchanges but every platform that implements KYC and does not inform their existing users should be considered a scam platform. For example, OKX users didn't need to do the KYC, but they started implementing KYC. Kucoin, Bitget, and now OKX are asking for KYC from users, and they are doing it by publicly announcing this.
Sometimes, KYC does not guarantee that users' funds are protected if they keep them there. Coinbase started closing accounts even though users were KYC verified. I did not check what was going on.
What are the repercussions of failing to complete KYC on an exchange?
Firstly, I believe KYC is government's way of winning the war against true Decentralisation and compliance has constrained exchanges to have it from almost every CEX exchange user.
As much as this might be a healthy practice for prevention of fraud and other vices, it negates the very essence of the blockchain technology.
Limitations attached to not having kyc is that you can not withdraw your depositsled funds from an exchange where you're yet to KYC on or you cannot withdraw beyond a margin.
That means you have your resources stuck in there until you get KYC'ed.
What are the repercussions of failing to complete KYC on an exchange?
KYC does matter in my case. To me KYC seems like a hassle process Because I feel embarrassed to present personal data to anyone else. So when I am going to exchange my fund then I am seeking for those exchangers who don't asked for KYC verification.
However, the exchangers say that as aml (anti-money laundering) they keep these know-your-customer(KYC) terms. But I think it's wisest to keep your data safe so you can use trusted exchangers that don't require kyc verification. These exchangers can seize funds for your kyc verification at any time.
Many people who do KYC think it is a hassle and they are not at all prepared to do this KYC, rather they don't do KYC to protect themselves. However, there are many exchanges where you must complete KYC as they will not give you access if you do not have KYC for withdrawing your funds. Although there are some exchanges that provide access for small withdrawals but when withdrawing large amounts you can never do so without kyc. If you want to withdraw large amount, you must complete kyc verification, but you will be allowed to withdraw from the exchange. Also, if you care about protecting your privacy, you can definitely use decentralized exchanges, where KYC does not matter, and these are the best for protecting your privacy.
hero member
Activity: 1036
Merit: 933
Find your Digital Services at- cryptolibrary.pro
What are the repercussions of failing to complete KYC on an exchange?
KYC does matter in my case. To me KYC seems like a hassle process Because I feel embarrassed to present personal data to anyone else. So when I am going to exchange my fund then I am seeking for those exchangers who don't asked for KYC verification.
However, the exchangers say that as aml (anti-money laundering) they keep these know-your-customer(KYC) terms. But I think it's wisest to keep your data safe so you can use trusted exchangers that don't require kyc verification. These exchangers can seize funds for your kyc verification at any time.
I don't know why many people frown at KYC verification but I think sometimes, it may be as a result of previous experience that is making people to be more conscious about dropping there data on exchange except the exchange has user data protection which will enable individual data to be well kept in a portfolio where no one has access to it even though the exchange get hacked.
You're exposed to a third-party attack should such an exchange or company get hacked as your data/details can be stolen in that event and be used for impersonation and other criminal activities to your person. Etc.
You'll need to go through this thread to get the whole idea of why many people frown at KYC. Why KYC is extremely dangerous – and useless
KYC is not the ones that are dangerous but it is when someone steals it from you and impersonates you but we shouldn't worry as long as we know that we are using a very trusted platform with no or less history of being hi-jacked. And they definitely improve their security from time to time because it can affect them once something bad happen to them or to their customers.
You can easily verify kyc on major exchanges like binance and kucoin but your personal information will be sent to third parties but your account will be protected. In that case it is dangerous to submit documents for kyc verification in low quality exchange, so first be specific about which exchange you want to pass kyc. KYC is essential for processing large fund deposit and withdrawal both because this customer is valuable. But i think using kyc anywhere else without exchange is dangerous because they can seize your documents and use them for bad purposes.
What are the repercussions of failing to complete KYC on an exchange?
For not doing your KYC verification, you might not be given access to withdrawal, although exchanges differ in handling KYC issues. Some exchange would not allow you withdraw big amount of funds, but they will allow you to withdraw little amount of funds. While some wouldn't even allow you to withdraw at all, until you have completed the KYC verification. There are decentralized exchange too, these exchanges don't do KYC and if you care about your privacy, they are the best. Exanple of fecentralised exchange is bisq and Agora Desk, you can look at it hereThis is not entirely true, the circumstances will determine if you are going to be allowed to withdraw or they will not. First of all, when you register with a centralized exchange, the first they disallowed you is making deposit, they will not allow you to deposit any coin into the exchange and if you already have coins on the exchange prior to the announcement of KYC i.e if they don't allow accept KYC before and later change their mind, they will open withdrawals for some people to remove their coins if they don't want to do KYC but will not be allow to do trading on the exchange.
There are some exchange that ask your primary details which you can provide with false information and use the exchange if you want to use that particular exchange but it doesn't worth it because if they suspect you of anything, they will ask for other details and if it doesn't match the first information you provided, they can seize your coins till further investigation is carried out.
Of course, KYC matters!
If you do not submit your KYC, the platform may freeze your account and confiscate the available balance. If you care about your privacy, do not use such platforms which ask for KYC.
If that exchange is not scam and does not plan to scam customers, they will announce their KYC policy change and give their customers enough time to decide one of two options:If you do not submit your KYC, the platform may freeze your account and confiscate the available balance. If you care about your privacy, do not use such platforms which ask for KYC.
- Withdraw all money, refuse to complete KYC.
- Submit KYC, finish it and use full service of the exchange.
But as a customer, when you see such KYC announcement and given time to withdraw your fund, you should withdraw all your funds first. Then if you like, you can submit KYC and wait for approval. If your KYC is completed successfully, you can deposit your fund again.
But Reminder: do not keep your money in online accounts
hero member
Activity: 462
Merit: 767
Instant cryptocurrency exchange with own reserves!
What are the repercussions of failing to complete KYC on an exchange?
Of course, KYC matters!
If you do not submit your KYC, the platform may freeze your account and confiscate the available balance. If you care about your privacy, do not use such platforms which ask for KYC. I would suggest using agoradesk.com, which is a platform where users can trade between them, and there is no need for a KYC. There are a bunch of other platforms that do not ask for KYC. But you have to search for it and check if it meets your needs. Recently, coinbase started closing users' accounts even thought those users were KYC'ed there. I don't care about them since previously it was proved that they sold user information.
I am not sure anyone mentioned about this but there are some exchanges that will give access to deposit addresses only after you complete your KYC which is a really good thing in my opinion cause if the user can't able to do KYC then he won't lose any money at all but it's not the same on every exchange where most likely you will be restricted to withdraw as many others said until you complete KYC.
There are very few no KYC exchanges left but even on them you will be restricted from a lot of things like low withdrawal limits, won't be able to deposit fiat, can't access more trading like futures and derivatives.
You are right, we will experience limitations in using the features provided by the exchange if we do not carry out KYC, such as having a very small maximum withdrawal and so on, which you mentioned, I have experienced on several exchanges.There are very few no KYC exchanges left but even on them you will be restricted from a lot of things like low withdrawal limits, won't be able to deposit fiat, can't access more trading like futures and derivatives.
Maybe talking about the negative impact that will occur for users who carry out KYC, when the exchange goes bankrupt or is hacked, our personal data will potentially be disseminated and could be traded by irresponsible individuals for use in criminal acts.
You are right, on the past when not going through KYC was still an option then it made sense to chose to exchange your coins on several platforms in order to not put all your eggs in one basket, but with the change on the regulations and the need to go through KYC then it makes more sense to use a single platform.
As in this way you only expose your information once instead of doing so several times, however this means the exchanges at the top become even more powerful to the point one of them could reach monopoly status.
Because in the past exchanges were given leniency with their regulations so that they still allowed users to use the platform without KYC, but now the regulations have become stricter and the attention of many governments has put pressure on the platform, including users, to comply.As in this way you only expose your information once instead of doing so several times, however this means the exchanges at the top become even more powerful to the point one of them could reach monopoly status.
It will be very difficult to use one platform, when you have certain coins as a result of an airdrop or bounty while the coins are on another platform, not the platform you use, then they will definitely register and do KYC to be able to sell the tokens, but it wouldn't make sense if can really survive on one platform.
Still use it wisely, because this is a small risk for you when submitting documents for KYC, even if there is other leaked data, we can't do anything except that only the platform can cover it.
Maybe the best solution is for people who store their eggs in an exchange that already has permission and supervision from the government in your country so that everything is safer.
You are right, on the past when not going through KYC was still an option then it made sense to chose to exchange your coins on several platforms in order to not put all your eggs in one basket, but with the change on the regulations and the need to go through KYC then it makes more sense to use a single platform.
As in this way you only expose your information once instead of doing so several times, however this means the exchanges at the top become even more powerful to the point one of them could reach monopoly status.
Because in the past exchanges were given leniency with their regulations so that they still allowed users to use the platform without KYC, but now the regulations have become stricter and the attention of many governments has put pressure on the platform, including users, to comply.As in this way you only expose your information once instead of doing so several times, however this means the exchanges at the top become even more powerful to the point one of them could reach monopoly status.
It will be very difficult to use one platform, when you have certain coins as a result of an airdrop or bounty while the coins are on another platform, not the platform you use, then they will definitely register and do KYC to be able to sell the tokens, but it wouldn't make sense if can really survive on one platform.
Still use it wisely, because this is a small risk for you when submitting documents for KYC, even if there is other leaked data, we can't do anything except that only the platform can cover it.
Stick to one reliable platform as it is almost impossible now not to do KYC. You are right just don't do KYC on multiple platforms as the risk of getting your information leaked is huge but still if we are talking about the fact that we have already given our information to one platform it is still possible for data to leak.
We are really forced to do KYC to completely use all the features of a platform. To be cautious we should always do this on the most established platform we are using and make sure it is not a fake website.
You are right, on the past when not going through KYC was still an option then it made sense to chose to exchange your coins on several platforms in order to not put all your eggs in one basket, but with the change on the regulations and the need to go through KYC then it makes more sense to use a single platform.We are really forced to do KYC to completely use all the features of a platform. To be cautious we should always do this on the most established platform we are using and make sure it is not a fake website.
As in this way you only expose your information once instead of doing so several times, however this means the exchanges at the top become even more powerful to the point one of them could reach monopoly status.
I don't know why many people frown at KYC verification but I think sometimes, it may be as a result of previous experience that is making people to be more conscious about dropping there data on exchange except the exchange has user data protection which will enable individual data to be well kept in a portfolio where no one has access to it even though the exchange get hacked.
You're exposed to a third-party attack should such an exchange or company get hacked as your data/details can be stolen in that event and be used for impersonation and other criminal activities to your person. Etc.
You'll need to go through this thread to get the whole idea of why many people frown at KYC. Why KYC is extremely dangerous – and useless
But protecting personal data today I think is no longer effective when we are also using social networks, online payment applications...most of which require KYC to be able to use.
Stick to one reliable platform as it is almost impossible now not to do KYC. You are right just don't do KYC on multiple platforms as the risk of getting your information leaked is huge but still if we are talking about the fact that we have already given our information to one platform it is still possible for data to leak.
We are really forced to do KYC to completely use all the features of a platform. To be cautious we should always do this on the most established platform we are using and make sure it is not a fake website.
Jump to: