Topic: Why KYC is extremely dangerous – and useless - page 7. (Read 5979 times)

based on my chat with Binance support, frozen account or assets happen because you account got security issue or something else made your account detected unusual. This case can be a good information for all of binance user, especially who don't want to passed KYC. Thank you for sharing, i hope you can get your money back.

A BIG WARNING here! STAY AWAY from Binance Free Accounts! At some points, they will freeze your assets and force you to provide KYC. THis happened to me! This Exchange is not serious at all!

AFAIK, Binance one of exchange that not asking KYC for members who not needed to withdraw more than or equal 2 BTC/day. It's mean, if you are joining in exchange that asking KYC to activate your account, you should avoid them. How to do this, you can join them, but don't use real personal information first. Or, if you want to play safely, you can try to search/ask in the forums before join and find information about KYC on exchange you want to join. This exchange list articles^[1] can be an option that not asking KYC as mandatory for members.

^{[1] DYOR/DWYOR}

Almost platform are posing for KYC which is basically annoying and crypto currency not designed for this type of KYC processor. However, I forced to submit KYC on Bittrex for withdrawals once they were implemented KYC policy. As I remembered, I even have submitted KYC on Hitbtc & coinbase and also some exchangers.

PM me a copy of your ID. I swear it will never be misused.

You wouldn't do that, would you? Why would you give it to somebody else? Whether it's a small company, a corporation or simply a person, just why? Moreover, why do you have to give it after registering and depositing funds on most websites?

You could deposit 1 BTC on a website and I may have the password of it and complete KYC to withdraw your money from your accounts into my wallets and nobody would suspect a damn thing, I mean.. "you" have completed the identification process, haven't you? Besides IP, how would Binance know that the guy who completed KYC after their account activity turned "suspicious" is the same guy who registered?

It's just plain nonsense and too many are taking advantage of it. But it's only me and a handful of others complaining about it, everyone else says "well you should give it if you really have nothing to hide" .. -insertEdwardSnowdenquotehere-

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Let that be their personal matter. If you'd like to sell your hands to somebody 'cause you want to make money off them, then feel free to do it. They're doing that as they will to, but nobody tells you about the dangers of KYC before registering everywhere. All you're being told is, "obey the law".

KYC is much riskier and more likely to be a victim of fraud The reason KYC is dangerous is that we don't have personal information and there are many KYC who do not have wallet keys and hack our wallet I was once the victim of this deception. Therefore, it is better not to do KYC to protect your data from the websites that ask you to do KYC.

The need to pass verification on Binance is not only to increase the daily limit for withdrawing money. Passing KYC allows you to use additional services of the exchange. Only after verification you will be able to take advantage of margin trading and futures. In addition, you will be able to restore your account if you lose access.

Sometimes it is unavoidable to go through KYC, but it is extremly important to check the party to which you submit your documents beforehand.

I guess for some exchanges KYC is just an alternate income stream (by selling this data) while other exchanges indeed just try to comply with the law.

One extreme example I encountered is Crex24 for which I created a Scam accusation recently after they suddenly and out of the blue went "you need KYC to withdraw":

https://bitcointalksearch.org/topic/scam-crex24-sudden-kyc-while-crex24-wishes-to-stay-anonymous-5243879

I myself do KYC while buying ico in years 2018 if secure my data I do not quite know that KYC be misused someone irresponsible when I read this thread I realize that personal documents are very important and very dangerous if it is owned by the bad guys and used in any use for the benefit of crime.

Off course kyc could be risky factor our data could be used in wrong purpose if the website that we had done a kyc being fraud than it ws not good for us....

Great work @1miau. If you don't mind i would like to do Polish translation.


I will quote my post here that i made for a guy who was pro restrictions and pro KYC:


And actual data right from darknet:


In present world you don't even need to collect single $ from ICO to call it successful. All you need to do is no-KYC bounty and change it to KYC bounty after 2 months.

I found this thread to be extremely informative and helpful OP. I truly wish more places and people would take a similar sentiment on the current "accepted" KYC "standards". I will be directing the companies and business who are demanding KYC from me to this exact post. Wonderful read!

You should be using an open source 2FA authenticator app which allows you to export your encrypted database as a back up, such a Aegis or andOTP, and not Google Authenticator, which is the worst 2FA app out there. If your mobile with 2FA is stolen, then your accounts shouldn't be compromised because the attacker does not know your passwords, and you can still access your accounts by restoring from your 2FA database back up.

I've got your idea. Maybe passing KYC on Binance was not the best idea after all. But what about situation when your mobile with 2FA is stolen. How can you recover access to your account ?

Anyway, I will never pass a KYC for a bounty reward or something that I wont use often.

Good security is expensive. Exchanges don't want to spend money and lose out on profits. We have seen time and time again that exchanges can be subject to huge security breaches and lose thousands of customers' KYC data, and people don't care. They will continue to use them and continue to trust them, even though they can't be trusted. Why would an exchange spend all that money on good security for their users, when their users will continue to use them regardless? So instead they opt to tender their KYC processes out to the lowest third party bidder, with predictable results.

This is a poor reason to complete KYC. If you have different, strong passwords for both your email and your Binance account and use a secure method of 2FA for both (not SMS or SIM based), as well as practicing basic security practices such as not logging in on public computers, then the chances of your accounts being hacked are minimal. If your Binance account was hacked, then you should be able to recover it from your email address.

If your account was hacked, and any coins you had on it stolen (although they shouldn't be since you should be storing all your coins in your own wallet), then what good is recovering the account anyway? You won't get your coins back. Risking your KYC documents for this reason is pointless.

But I've passed KYC on Binance just to be sure to have some instrument that my account is mine. Imagine some steal access to your account (probably got access to your mail, but keeps silent about it). How can you prove that this is your without giving any kind of person identification to exchange.

This is absolutely true!
And we have been many cases where data have been leaked and who knows what the hell  happens with these huge data.

Few cases:
https://www.infosecurity-magazine.com/news/data-leak-password-reset-crypto/

https://cointelegraph.com/news/bitmex-email-data-leak-fallout-is-serious-many-users-already-affected

My opinion is that crypto exchanges should be more focused on security than on KYC.
But well, KYC is needed also to fight against things like AML.
It's complicated situation.

I'd say it depends on how much you need to withdraw on a daily basis. Since you mentioned Binance, they have a a 24-hour withdrawal limit of 2 BTC. For most users this is enough. Do you honestly need to withdraw more than 2 BTC per day that would justify going thorough KYC?

Personally I dont like to do KYC for any kind of bounty project. But I like to do KYC for exchange platform like binance,bittrex because it has huge advantage. you can withdraw huge amount of btc/crypto and your problem within the exchange will be solve easily. so its good to do KYC for exchange. but for bounty project its not good at all. because most of the bounty project are fake and they are just trying to collect our personal data and so why KYC is very risky for us.

its extremely dangerous since it really expose your identity, specially information the may lead you be a target of hackers , and we know that the information that we are giving is very critical, since this info are also being use in the banks, by a lot of people, hackers can take advantages of the info,
giving your info or selling it, this also can happen, i see a lot of group selling information's for companies the offers credit card and health cards and its annoying i know everyone experience this,
great topic i hope to see more