At a basic user level, I think KYC is the bare minimum to keep yourself safe while using any CEX, but depending on the purpose of use, one can use thousands of accounts KYC pass. To be honest, sometimes I really want to protest the meaninglessness of a cyberspace where identity becomes unconvincing, but as a habit, I find that whether I like or hate this issue, it's okay there is no difference.
I remember some CEX's in the past that leaked personal information of users, and I also find it very funny that confidential identity is just a term we think it is, so there are many options about whether to accept it or not?
I think it's important to be proactive in using and choosing appropriate services.
Topic: Why is KYC mandatory in CEX? - page 6. (Read 888 times)
So are you entire denying the fact that KYC enhances security? I dont agree with you that exchanges implement it due to government pressure. Many have implemented it solely because of security issues as opposed to what you claim ser
If the centralized exchange implement KYC because they said it's to enhances their security, it's a bullshit.Do you think if there's a customer admitting he lose all of his funds because of hacked, the exchange will refund all the funds? nah. They're just collecting every customers' personal identity and you will not know what they will do next, you're also don't know how they're store your identity.
Every centralized exchange is prone to get hacked.
Well, you can simply not use exchanges with KYC. There are a lot of P2P exchanges. KYC is required mostly because governments are watching them and won't let them work otherwise.
Centralized exchanges are registered in jurisdictions as a business entity. Part of this registration requires they ensure their customers are legally allowed to do business in those jurisdiction and also to comply with laws such as anti money laundry laws. There is also the need to ensure that such exchanges are not used for other negative financial purposes such as drug trafficking, terrorism financing and others. So KYC for CEX is mostly the requirement of the government where they are registered in.
Think about it like this. If you wanted to open an exchange and wanted for it business legitimacy, employment rights, tax rights, with all the permits and licenses that come with it, then you have no choice but to comply with those regulations granting you that legitimacy.
You'd also (for marketing purposes) would like to know it's not a million bots claiming airdrops but actual users who you could later monetise.
As a user, you want "free" shit, be prepared to give something else in return. Your identity.
Don't like CEXs and can do without airdrops? Whoa, P2P!
You'd also (for marketing purposes) would like to know it's not a million bots claiming airdrops but actual users who you could later monetise.
As a user, you want "free" shit, be prepared to give something else in return. Your identity.
Don't like CEXs and can do without airdrops? Whoa, P2P!
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?
There are a number of decentralized exchanges you can make use of if you are not comfortable giving out your data to third party entity. We cherish and priotize privacy in this world of crypto but there are channels we wanna get through with that would require kyc from you and it's required because that's part of the policy that permits the operation of those Centralized exchanges as required by the authority that authorized their legitimacy. KYC are required for data reference purposes, security check and others, but what makes many crypto enthusiasts frown at it's how controversial and regulatory the government uses it against us.
I think government want to reduce the use of cryptocurrency for illegal transaction so government want to increase it trace ability. honestly I am okay with KYC as long as they only use it prevent criminal activity. but I am afraid that government do abuse of power by force the citizens to pay tax or pay anything to increase country revenue which they will corrupt it. honestly I think the taxation system in my country is unhealthy and weighing the citizen, in my opinion those people who work in that related institution are too slick. I hope there are more wise, good and honest people who manage my country in the future and replace the bad people. I hope for the better in 2024.
True, now KYC is mandatory for most centralized crypto exchanges as it is a financial services business. Apart from that, due to market skepticism, KYC on centralized exchanges is very necessary. Of course, one other reason to avoid money laundering and other illegal activities.
Because as time goes by, diversity in the current market is increasing along with the increasing number of cryptocurrencies being traded, making crypto exchanges increasingly popular among the public. Ultimately making governments in each country impose more serious regulations on centralized exchanges. In my country all local Cexes all require KYC, maybe in addition to preventing money laundering the government aims to also collect taxes from each user because all user identities are very easy to track because of this KYC.
Because as time goes by, diversity in the current market is increasing along with the increasing number of cryptocurrencies being traded, making crypto exchanges increasingly popular among the public. Ultimately making governments in each country impose more serious regulations on centralized exchanges. In my country all local Cexes all require KYC, maybe in addition to preventing money laundering the government aims to also collect taxes from each user because all user identities are very easy to track because of this 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?
Its the law. Or rather it is simply the exchanges following government regulations so that in a legal case, they are not the ones held responsible. Because they could lose a lot of money and the owners might end up in prison if they were at fault for say, terrorist money laundering schemes. Which I imagine is one of the worst case scenarios but it is a life- and business ruining event. Obviously the exchange owners do not want that. They would rather keep doing business.
But the real reason why CEXes follow the regulations is because they are all centralized and the government knows who to hold responsible. I doubt the owners care about forcing people to do KYC or stopping certain countries from trading on their platforms.
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?
Bitget is a centralized exchage that does not require for kyc before, but now they have started to request for such and according to how i heard, it is when you're withdrawing a particular amount of money that they subject you to kyc, but we cannot be sure if we are not reading their policy first as they would have effect a change on their ToS, so being a user, i will advise you to revisit their platform and read their terms and conditions as stated, if you're still using ba centralized exchange, know that you're not 100% free from kyc, the request may come in anytime.
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?
Because of regulation.
If they want to target global crowd especially on US or strict countries they need to pass some requirements that can make their business legitimate and it includes KYC to their costumers.
But if the CEX doesn't care much about global markets and target only certain areas where law is not much strict as first world countries have then some of them doesn't require KYC.
Although its good not to submit KYC but you also need to know or consider the risk since its more risky if there's no government regulate those exchange.
This makes it real clear now. I just read they're operational in 60 countries spaning across USA, Canada, Australia, Europe, Korea, Japan, LATAM, India, South East Asia, Africa. Since it is a legal requirements for them to be allowed operation in those countries, I see it's a needed enforcement.
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?
Centralized exchanges are group of organization that are making money for their own purpose by providing a centralized platform fr people to trade their coins together but government think that it's not all coins with value that are actually legit, they could be stolen from another since majority of them is pseudonyms and tracking will be something they can't overcome. Hence, they introduced an element call anti money laundering/know your customer( AML/KYC) just to know who deposit and who withdraw coins from these platforms and tracking becomes less stressful for them but this is at the cost of intruding ones privacy, it's even against the standard of bitcoin.
Some of these centralized exchanges also have the habit of selling people's documents and identification to the wrong people where they sell data for money and this ID are been resold to the bad actors which they used to carryout bad things. You don't want to wake up and found out that your pictures is everywhere with Bounty for wanted for criminal activity. KYC isn't a good thing to trust.
Privacy is important to users, but to centralized exchanges, they are like a company and they need to comply with the law if they want to stay in business. Furthermore, KYC also has advantages such as avoiding fraud, money laundering, hacking...KYC has many benefits. But what people fear is whether our identities are really protected by exchanges or if they are using them illegally. Everything has pros and cons and depending on each person's preference we choose CEX or DEX.
The fear is that customer personal information can be stolen or sold to scammers or other businesses. This information is also prone to hacks that can have some negative consequences. There are also cases where employees of the CEX platform leak client's data to the public, so they cannot be trusted. DEX will always be a good option regardless of the benefit most CEX claim to offer. Most of the centralized exchange are subjected to the government regulations, some of the regulation including preventing money laundering. Some users of the exchange might deposit some money that are gained with illegal activity, and then swapping those 'illegal' money to the clean money that are circulating on the exchange, by using KYC government can track if some illegal money from a certain person are deposited into the CEX.
They have to either abide by these regulations or face severe sanctions. Government policies are also dynamic which means that these CEX will have to change their policies periodically. CEX users are always encouraged to go through their terms of service to be aware of current developments.
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?
Centralized exchange will always require KYC this is a regulatory demand and not exchange in reality, exchange is out for business but to get licensed, an exchange will need to comply with some set of rules and requirements that the exchange must comply with before there are issued a license, and for that we must have to come to term with the fact that even though Bitcoin is decentralized still some of it services are highly centralized such as exchanges and other BTC payment gateways that we have and providing services for Bitcoin users. The only exit from such demand if you have high value for privacy is to use only decentralized exchanges anytime you want to exchange your Bitcoin, if not keep holding your Bitcoin in your wallet that is the best safety and privacy measures
Bitget has been doing such policy changes for sometime now. A few months back, for upto 50k, KYC was not mandatory. Then a few days back they again changed their policy and made KYC mandatory for every user.
I feel they are using KYC as an instrument to get new users. Earlier they had a signature campaign in the forum when they relaxed the KYC norm. I guess as soon as they hit a target of a certain number of users they abruptly closed the campaign and again made KYC mandatory.
CEX as they are centralized are know to use such kind of marketing tricks to gain new users. I remember Bitget relaxed KYC as soon as Kucoin implemented mandatory KYC. It is how churning of users are done by CEX like Bitget. It is better to use a DEX if you are someone who doesn't like going through KYC and please stay away from airdrops. They are a big waste of time after 2019.
I think policy flexibility isn't out of place if the policy is user's centric; besides crypto industry is fast evolving such that healthy competition should be a welcome development and I think their recent yield to mandatory KYC (at least level 1) should be borne out of popular demand particularly from user resident in the highly regulated areas.I feel they are using KYC as an instrument to get new users. Earlier they had a signature campaign in the forum when they relaxed the KYC norm. I guess as soon as they hit a target of a certain number of users they abruptly closed the campaign and again made KYC mandatory.
CEX as they are centralized are know to use such kind of marketing tricks to gain new users. I remember Bitget relaxed KYC as soon as Kucoin implemented mandatory KYC. It is how churning of users are done by CEX like Bitget. It is better to use a DEX if you are someone who doesn't like going through KYC and please stay away from airdrops. They are a big waste of time after 2019.
I also cant relegate the use of DEX cos tbh I use it occasionally but its complexity, inability and difficulty in recovery of password and seed phrases is a huge concern, not to mention the extra cost for gas fee and its complex UI.
Let's embrace KYC mate cos it comes with huge benefits
Nope, privacy is pointless in cryptocurrency because most of cryptocurrency are centralized and not open source. Only few cryptocurrency that care with privacy, one of them is Bitcoin. Since not all people are care with privacy too and these big CEX get pressured by government to enable KYC mandatory rule, they have no choice.
Let's imagine you're the founder of a big CEX and SEC force you to enable KYC rule, will you choose to enable KYC rule or shut down your exchange?
Let's imagine you're the founder of a big CEX and SEC force you to enable KYC rule, will you choose to enable KYC rule or shut down your exchange?
So are you entire denying the fact that KYC enhances security? I dont agree with you that exchanges implement it due to government pressure. Many have implemented it solely because of security issues as opposed to what you claim ser
Got an email reply from Bitget about the rules that apply now KYC will start October 1 so users are still free now to make withdrawals without KYC.
This is already a legal regulation and many others have explained so you should not be surprised however an exchange will definitely implement a KYC system for all users and you should know that this applies to all its customers not certain users with large transaction amounts.
As for preventing other things, it makes sense, especially if it's a centralized exchange there must be more control so it won't be private anymore.
This is already a legal regulation and many others have explained so you should not be surprised however an exchange will definitely implement a KYC system for all users and you should know that this applies to all its customers not certain users with large transaction amounts.
As for preventing other things, it makes sense, especially if it's a centralized exchange there must be more control so it won't be private anymore.
KYC is not mandatory in all centralized exchanges.
I don't want to believe there's truly a Cex that won't in the actual sense call for KYC. It might take a while to ask but it will definitely come up later. It was the same way with Binance when it launched in 2017. KYC free and all that (even no commission, trading) on Binance until at some point it became mandatory for its subscribers to do before they could make withdrawals. I know it's not solely the making of these exchanges but the regulations they've to face and comply with from monitoring bodies and government agencies. 
KYC checks whether the user is authentic, not how much money is transferred. Even though crypto privacy is vital, exchanges combine traditional banking with decentralized crypto. Those in charge. They want to limit money transfers, terrorist funding, and tax evasion. They must be able to face every exchange. KYC follows.
The simple answer is, why does the government impose regulations on centralized exchanges to enforce KYC, I think that is enough to answer your question, if it comes to privacy or anonymity it is indeed very important for everyone in general, but what can you do, the government enforces this also for security so that it requires exchanges to enforce KYC, if they were not required to enforce KYC I think they (CEX) would not do it considering that there are so many users who are against KYC for various reasons.
But don't worry, there are still many exchanges that don't require KYC, you can still find them.
But don't worry, there are still many exchanges that don't require KYC, you can still find them.
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