The CEO of Digitex exchange Adam Todd decided to
publicly oppose the KYC system, believing that this system only repels customers from the service and destroys the business. I myself am not a big fan of KYC, but it is definitely not without meaning and helps to prevent laundering and so on. I wonder what goals he can actually pursue by making such a decision.
What do you think about KYC and its appropriateness? Do you separate KYC by the types? Like going through KYC to just get the access to exchange platform (as it is
now with Shapeshift), or simply register with any email, but knowing that you might be one of the 0.1% and might be asked to confirm your identity (as it is now with
Changelly)?
I don't like KYC. It is even an understatement. I actually hate KYC. I agree that KYC requirements significantly repel customers from certain services. And if that happens, the business is indeed affected. Try putting up a sports betting site or online crypto casino with KYC and I am more than sure that it will be lagging behind its competitors that do not ask KYC from its users, if they don't die shortly after launching. In case of exchanges, it has unfortunately become a norm that they ask for KYC, as per legal requirements. But this is only due to the fact that centralized exchanges are the main thing for now. Sooner or later, when decentralized exchanges will take over, KYC will become a thing of the past.
Money laundering is not prevented by KYC. If a certain user is enrolling an account because he/she has something to launder, do you think he/she will provide his/her real personal information? He/she must be a foolish launderer if he/she does that.