The issue is we cannot share our personal information with these sites. Every time any exchange has verification things done gets hack and all the data is exposed to the hackers so why we risk that?
Bitcoin is totally anonymous so why we need to put our information on those sites?
There is no way to remain anonymous these days. Many bitcoin exchanges have already made KYC compulsory and rest will follow the same. If you want to use your bitcoin , you have to trust few sites and do your KYC.
By the way, just for the information if a site is hacked and our KYC is compromised , what can hackers do with our ID's Scan copy and picture ?
A lot of things. They can blackmail you saying that they will sell your identity in the black market. They can have access to your social accounts and other accounts as well by showing the identity and the picture. In short many things can be done as our ID and picture is the thing that can be used anywhere to retrieve anything which is personal to us.
So better keep your documents safe.
I agree that all these things can happen if our documents are hacked but then we need to see what is the intensity of the loss and it varies from person to person.
In the case of Localbitcoins, if i stop using it, i will not be able to cash out my bitcoins within Pakistan as i found localbitcoin to be the fastest and easiest way to cash out. On the other hand i do not care if my social media account is hacked as i am not a celebratory and hackers would not get anything if they hack my account. If they use my identity to create some illegal accounts for illegal activity in other countries that also wont be much affected to me.
Yes, if i stop using localbitcoins and trading on exchanges by not submitting my kyc, that will have a bad impact on my earning and living.
You really are a badass person to not to care about your social accounts, People like me care about everything.
