Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?
If business didn't have regulations, they would definitely not ask you for KYC documents, wouldn't really care about the source of your money or probably would seize your account anytime. You use cryptocurrency for your privacy but once you make yourself in touch with centralized system, you are vanishing that privacy. Centralized systems 99% times don't care about your privacy because that's your problem, not theirs and to be honest, majority of people don't care about privacy too much if the service they get fulfills their needs.
Topic: Why is KYC mandatory in CEX? - page 2. (Read 888 times)
It's interesting that we disclose our information to banks, companies, and social networking sites but not CEXs.
I hear a lot of people say this, but it is because centralized exchanges are provably very bad at storing their customers' information safely, they are regularly victims of hacks and data breaches, so the chances are high that the information you give to a centralized exchange could be sold in the black market someday.Another reason i consider important is that i use a bank and i know they are centralized and must request for my personal information, but my reason of using BTC is because i want to hide some of my financial activities and use a currency that is censorship resistant, if i use centralized exchanges it defeats what i want to achieve and it is the same as me using my centralized bank for 100% of my financial activities.
Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?
If business didn't have regulations, they would definitely not ask you for KYC documents, wouldn't really care about the source of your money or probably would seize your account anytime. You use cryptocurrency for your privacy but once you make yourself in touch with centralized system, you are vanishing that privacy. Centralized systems 99% times don't care about your privacy because that's your problem, not theirs and to be honest, majority of people don't care about privacy too much if the service they get fulfills their needs. When talking about our personal data or identity, I believe no one can hide it because we are all using bank accounts, employee cards and health insurance cards, even social networks and all the centralized services we use every day. Our identities are no longer a secret, why do we go easy on those things but when it comes to CEX we feel uncomfortable. That's the question I've been wondering for a long time.
Furthermore, CEX is a place to exchange, buy, sell, and convert, not a place to store assets. Even banks cannot give us safety, there is no reason to trust CEX. It's our fault, when we lose money we shouldn't blame CEX.
I concur, as for certain renowned international CEXs, it can sometimes be challenging to report adverse incidents. However, if we carefully select our preferred CEX, such as opting for a local one, there may still be a possibility to report any detrimental occurrences to the relevant authorities.Furthermore, CEX is a place to exchange, buy, sell, and convert, not a place to store assets. Even banks cannot give us safety, there is no reason to trust CEX. It's our fault, when we lose money we shouldn't blame CEX.
What I've been doing all along is exclusively utilizing CEXs with impeccable reputations and the highest transaction volumes. Additionally, I turn to local CEXs for exchanging with FIAT currencies. I don't find it burdensome to undergo KYC procedures on both of these platforms since I require them for conducting transactions there.
As for some other centralized exchanges, I skip the KYC verification process and adhere to the transaction limits they've established.
DEX is not new, it has been around for a long time but for some reason until now it is still not more perfect and cannot compete on equal terms with CEX. DEX still seems to be slower and weaker than CEX in the battle for market share. I have also heard many people believe that DEX will be the future of exchanges, but so far CEX is still the place that people trust more even when there are many incidents and bankruptcies.
I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.
It was only about time before DEX finally started to become a mainstream choice, Why? because nowadays more people don't realize how important it is to keep our personal data confidential, and also using DEX will keep our assets safe from freezing from exchanges like CEX often do, and when users ask about the cause they will never get an answer that is convincing.I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.
It's quite strange that the many hacking dramas from CEX, bankruptcy, scams and so on haven't been able to make people massively abandon CEX and start using DEX because people will prefer the convenience they get in CEX while DEX looks more complicated like Bisq you have to download it to use it, but if there was a simple DEX I'm sure it would start to change people's perspective and start switching to something safer.
When talking about our personal data or identity, I believe no one can hide it because we are all using bank accounts, employee cards and health insurance cards, even social networks and all the centralized services we use every day. Our identities are no longer a secret, why do we go easy on those things but when it comes to CEX we feel uncomfortable. That's the question I've been wondering for a long time.
Furthermore, CEX is a place to exchange, buy, sell, and convert, not a place to store assets. Even banks cannot give us safety, there is no reason to trust CEX. It's our fault, when we lose money we shouldn't blame CEX.
DEX is not new, it has been around for a long time but for some reason until now it is still not more perfect and cannot compete on equal terms with CEX. DEX still seems to be slower and weaker than CEX in the battle for market share. I have also heard many people believe that DEX will be the future of exchanges, but so far CEX is still the place that people trust more even when there are many incidents and bankruptcies.
I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.
It was only about time before DEX finally started to become a mainstream choice, Why? because nowadays more people don't realize how important it is to keep our personal data confidential, and also using DEX will keep our assets safe from freezing from exchanges like CEX often do, and when users ask about the cause they will never get an answer that is convincing.I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.
It's quite strange that the many hacking dramas from CEX, bankruptcy, scams and so on haven't been able to make people massively abandon CEX and start using DEX because people will prefer the convenience they get in CEX while DEX looks more complicated like Bisq you have to download it to use it, but if there was a simple DEX I'm sure it would start to change people's perspective and start switching to something safer.
When talking about our personal data or identity, I believe no one can hide it because we are all using bank accounts, employee cards and health insurance cards, even social networks and all the centralized services we use every day. Our identities are no longer a secret, why do we go easy on those things but when it comes to CEX we feel uncomfortable. That's the question I've been wondering for a long time.
Furthermore, CEX is a place to exchange, buy, sell, and convert, not a place to store assets. Even banks cannot give us safety, there is no reason to trust CEX. It's our fault, when we lose money we shouldn't blame CEX.
KYC is important in centralized exchanges as they use it for profiling. They require customer information for some sort of data-correlation so they can use it for 2-factor authentication or something, and in some cases they require it to make sure that customers for withdrawals to make sure that they don't money launder. Other more viable options wouldn't really jeopardize the customer's identity on the line like Static IP addresses fetching to make sure that they aren't creating multiple accounts, but since these are easier to implement, and since it's a little counterintuitive to not ask for customer's information when you're already working with a centralized exchange, they might as well.
There is no cex without KYC and the reason for licensing, so to fulfil the regulatory mandate, the exchange must have to demand for customers' data and other vital information, but what has baffled me for some time now is that, despite all the KYC that have come along centralized exchanges still failed to protect the customers.Take the FTX issue for example, despite being a regulatory compliance exchange with customer mandatory KYC, its bankruptcy crisis still fell on the customers who lost a huge sum of money running into millions or billions of dollars, so if the regulator had an interest in the customers at heart while issuing a license to cex, there should be some form of insurance of the customers and collecting KYC should be in that regard of settling potential crises such as this, to protect the exchange users from losing funds.
I don't think the KYC requirement is for customer protection. To put it bluntly, centralized exchanges are protecting themselves because without complying with government regulations, they will not be able to maintain their business, and KYC is one of the regulations from the government. Furthermore, requiring users to KYC is because they are afraid of fraud, money laundering...this will harm them, not customers.
Everything they do is for their own benefit, so don't be surprised when they go bankrupt, they don't have any responsibility to us.
Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?
I do think that there are CEX that do not require any KYC but be wary of these exchanges as you should not keep your BTCs longer on them.
Most of the exchanges have KYC in order for the platform to provide security for both of the parties. This guarantees the exchange that they have your personal information and no shenanigans can be executed. In effect, exchanges require KYC for both of your security.
While this may be the case, I do recommend that you register in an exchange that do require KYC.
Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?
Honestly I almost thought bitget was a KYC free exchange until I discovered that you will need to do KYC before you can use the exchange to do anything you want even trading. This is not supposed to be so because I know there are some cex exchanges that don't make KYC compulsory at all except you want to increase the amount you can able to trader and receive funds. You can search the internet for other exchanges that don't make KYC compulsory which you can use in your region without any restrictions or need to use VPN. There are not too many centralized exchanges that do not require KYC, as far as I know only Kucoin does not require KYC if you only trade small amounts. for larger amounts, you cannot use them without KYC. centralized exchanges all comply with the law to operate, so failure to KYC is very unlikely, it is a government regulation and no longer under their jurisdiction.
DEXs are an option for those who do not want to expose their privacy, but they are not as liquid nor as full-featured as CEXs. so up to now, DEXs are not the choice of many people.
Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?
For most centralized exchanges, KYC is mandatory for several reasons ranging from keeping the customer from engaging in fraudulent activities with their accounts to ensuring customers credibility. However my qualms with these Centralized exchanges is that they are honest with the customers. Being that our personal information which we submitted to them are not well secured. They may even go as far as selling off these data to a third party for profit. Our KYC documents is not as private as they have us think it is. And fruads are still being committed. 
KYC is not mandatory in all CEX exchanges, but in big exchanges, no one can withdraw any funds without KYC, maybe the main purpose of the exchanges is Money Laundering, Scam, or Scam, so the exchanges have made KYC mandatory. It is my opinion that every major CEX exchange should make KYC mandatory It may be beneficial that no scammer can scam anyone
Some exchanges may not only require for kyc for a start but along the way they may choose to make such request later and place demands on it because they are unpredictable, why then can't we go ahead to make use of a non custodial wallet instead of using a custodial wallet from exchanges, we can also consider the risk in them as why not to use them together with the privacy abuse in using a centralized exchange.
Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?
Honestly I almost thought bitget was a KYC free exchange until I discovered that you will need to do KYC before you can use the exchange to do anything you want even trading. This is not supposed to be so because I know there are some cex exchanges that don't make KYC compulsory at all except you want to increase the amount you can able to trader and receive funds. You can search the internet for other exchanges that don't make KYC compulsory which you can use in your region without any restrictions or need to use VPN. Privacy is important when it comes to Cryptocurrency, so why do exchanges like Bitget require KYC (Know Your Customer) for all users, even those who only want to get airdrops? I thought KYC should be for those transacting many Bitcoins, Is it really necessary for everyone?
I do think that there are CEX that do not require any KYC but be wary of these exchanges as you should not keep your BTCs longer on them.
Most of the exchanges have KYC in order for the platform to provide security for both of the parties. This guarantees the exchange that they have your personal information and no shenanigans can be executed. In effect, exchanges require KYC for both of your security.
While this may be the case, I do recommend that you register in an exchange that do require KYC.
Not all platform requiring a KYC some of them just the basic email and phone number and we called this sometimes as level 1 only it's use for the account recovery and other feature, but of course they make a requirements and agreement if the account have a KYC they can experience difference in the local ones. But if you are just a small trader you don't pursue too much in KYC. Just likely a withdrawal amount only.
There are many limitations if you use a centralized exchange without KYC. For example, you cannot deposit and withdraw large amounts, you cannot use their P2P feature to convert to fiat currency, or your account may suddenly freeze and you will have to provide documentation ID card to solve the problem. If you really don't like KYC, it's best not to use centralized exchanges in the first place to avoid unnecessary trouble. You should use a decentralized exchange from the beginning.
But as far as I know, most centralized exchanges have started requiring KYC to be able to use even level 1.
Not all platform requiring a KYC some of them just the basic email and phone number and we called this sometimes as level 1 only it's use for the account recovery and other feature, but of course they make a requirements and agreement if the account have a KYC they can experience difference in the local ones. But if you are just a small trader you don't pursue too much in KYC. Just likely a withdrawal amount only.
DEX is not new, it has been around for a long time but for some reason until now it is still not more perfect and cannot compete on equal terms with CEX. DEX still seems to be slower and weaker than CEX in the battle for market share. I have also heard many people believe that DEX will be the future of exchanges, but so far CEX is still the place that people trust more even when there are many incidents and bankruptcies.
I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.
It was only about time before DEX finally started to become a mainstream choice, Why? because nowadays more people don't realize how important it is to keep our personal data confidential, and also using DEX will keep our assets safe from freezing from exchanges like CEX often do, and when users ask about the cause they will never get an answer that is convincing.I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.
It's quite strange that the many hacking dramas from CEX, bankruptcy, scams and so on haven't been able to make people massively abandon CEX and start using DEX because people will prefer the convenience they get in CEX while DEX looks more complicated like Bisq you have to download it to use it, but if there was a simple DEX I'm sure it would start to change people's perspective and start switching to something safer.
However, CEX is convenient, especially for newbies. Many people got into crypto because of their user interfaces, speed, and services. The simplicity of CEX has won over.
Although superior in data confidentiality and asset security, DEX has a learning curve. Downloading platforms like Bisq can be scary. However, DEX platforms may be able to simplify their interfaces as technology advances, combining DEX's security with CEX's user-friendliness. If that happens, it might transform the crypto industry by making it safer and more convenient.
KYC is a must in Centralized Exchanges primarily due to regulatory laws. Governments want to prevent money laundering and other illegal activities (and also track and see what people are doing with their money). So, for a CEX to operate legally in many countries, they're required to ask for KYC from their users. It's not just about legal laws, it's also for the safety of the exchange and its users. Without KYC, the exchange might be charged and convicted of helping in money laundering. And if people do P2P trades, there is a risk that the user might be receiving money that has been obtained from illegal source. The user might accidently become a part of a larger crime.
In general, KYC is not necessarily bad because by doing so we will be protected by law. Many people do not like revealing their identities so they feel uncomfortable with CEX when it requires KYC, but those who do not like KYC and think that they do not need legal protection, but when attacked or stolen, the first person they looking for is still the police and the law, LOL.
Personally, I don't hate CEX and I still use them because they offer many services that are not available on DEX. I also believe that CEX is here to stay and remains the top choice for investors over DEX. Whether we like it or not, that's what's happening.
DEX is not new, it has been around for a long time but for some reason until now it is still not more perfect and cannot compete on equal terms with CEX. DEX still seems to be slower and weaker than CEX in the battle for market share. I have also heard many people believe that DEX will be the future of exchanges, but so far CEX is still the place that people trust more even when there are many incidents and bankruptcies.
I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.
It was only about time before DEX finally started to become a mainstream choice, Why? because nowadays more people don't realize how important it is to keep our personal data confidential, and also using DEX will keep our assets safe from freezing from exchanges like CEX often do, and when users ask about the cause they will never get an answer that is convincing.I don't want to disappoint you, but I seriously doubt that DEX will not be the future and surpass CEX. Since FTX collapsed and recently there was also bad news about bybit but then people turned to OKX instead of looking to decentralized exchanges like we thought.
It's quite strange that the many hacking dramas from CEX, bankruptcy, scams and so on haven't been able to make people massively abandon CEX and start using DEX because people will prefer the convenience they get in CEX while DEX looks more complicated like Bisq you have to download it to use it, but if there was a simple DEX I'm sure it would start to change people's perspective and start switching to something safer.
KYC is not mandatory in all CEX exchanges, but in big exchanges, no one can withdraw any funds without KYC, maybe the main purpose of the exchanges is Money Laundering, Scam, or Scam, so the exchanges have made KYC mandatory. It is my opinion that every major CEX exchange should make KYC mandatory It may be beneficial that no scammer can scam anyone
around 2016 KYC is not mandatory, you can signup on exchange without those only email confirmation, but as time goes, once the government became aware of the money being transfer via crypto currency to launder, they require the exchange for the mandatory KYC so that if they need anything they would ask the exchange, today there is no way you can pull out the money without them being known who you are, in you process this through exchange,
the bad thing also for those who have money in cex is if they don't KYC their account will be suspended or worse be ban and lost the money.
the bad thing also for those who have money in cex is if they don't KYC their account will be suspended or worse be ban and lost the money.
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