The only thing I can be sure about when dealing with an exchange is that will not do KYC/AML is that I am sending my money to a bunch of criminals. How do you think that is going to end?
Maybe they are believers who want to do good business without the oppression of law.
I started in this position as well. My assumption was that if they require KYC, then they must be complying with some law that I could use against them if they fold. This may hold for some companies, but it is purely case by case. Mt.Gox implemented KYC before they folded, extreme example... I know. It just seams the law is rather one sided (as the video clip in my OP mentions).
As I stated before... my view is heavily biased by my experience, so I was trying to get a sounding of other users.
So you are saying that I cannot do any Bitcoin arbitrage without completing the KYC?
Or is there any way around?
You could go BTC/ALT then ALT/BTC. Move the ALT between exchanges. Volume would likely be way to low to be useful though. I know people that do this with LTC, but there seems to be as many losers as winners.
I avoid giving any info related to me at all costs. I generally don't mind giving my name and/or an approximate address, but I'm not giving pictures of my documents. When I have to send scans of my ID in my country for government-controlled entities (or other entities that require my ID, such as cable providers, water and gas providers etc), I scan the documents and then I edit them with big red letters on top of my ID saying "for exclusive usage of *company name here*", otherwise I'm not sending my data anywhere.
That being said, I voted "I refuse to do business with a company requiring it.", obviously.
There is only a slight advantage of doing red color on top of your I'd.
But anyone with basic knowledge of Adobe photoshop can remove the red color and write other company's name on it.
That is correct. It won't stop someone truly dedicated in stealing my ID. But it's an extra and easy security precaution one can take. That and sending low quality scans, where only the basic info can be seen, making it difficult to steal the ID.
Also, sending ID like this was the advice of my trusted lawyer. Works for me, so better pass it on
Another common method (although highly questionable), is simply to redact personal data. I know people doing this with paypal and they claim it works. The idea is scan your license, then draw a Guy Gawks mustache on your face, and black out the DL number and the like. Point is, sometimes the company just wants a check-box and doesn't really look at what they get. Then again... they may have TOS that would allow this protest to trigger forfeiture of deposits.
Anyway, for me it is too late, maybe for you guys it is not.
I always saw it as an odds game. If 2% of companies get their KYC database hacked, then the fewer companies I share with, the lower my exposure. Not zero, but lower. My employer has my license, my mortgage company has my license... but hopefully, by limiting that number it's not quite as bad.
More info on KYC in a useful
AML/KYC thread. It also seems to list KYC heavy -vs- KYC light companies.
https://bitcointalksearch.org/topic/amlkyc-explained-454795