Post
Topic
Board Bitcoin Discussion
Re: Buying BTC from KYC exchange
by
o_e_l_e_o
on 27/07/2021, 08:17:59 UTC
So, no crypto exchange in the world can guarantee their user data? And what I ever heard about their promise to keep KYC data safety is fake only?
There is a famous quote from a famous professor of computer science which goes like this:

Quote from: Gene Spafford
The only system which is truly secure is one which is switched off and unplugged, locked in a titanium lined safe, buried in a concrete bunker, and is surrounded by nerve gas and very highly paid armed guards. Even then, I wouldn't stake my life on it.

The point he is making is that no can every possibly be 100% secure. There is always a chance that someone who isn't meant to be able to access it can, or that someone who is meant to be able to access it "goes rogue" and steals/sells the information on it. Any exchange which is "guaranteeing" the safety of your data either don't understand this basic fact, or understand it fine but are deliberately lying to their users to instill false confidence in newbies. Either way, I wouldn't trust anyone who makes such a claim.

If it is true, even Binance cannot guarantee our data? I am starting to be a bit afraid about my KYC data on Binance.
Binance have been hacked for thousands of users' worth of KYC data in the past, so they absolutely can't guarantee anything: https://thehackernews.com/2019/08/binance-kyc-data-leak.html

Even if you want to declare it now, in many jurisdictions you have already committed a tax crime, so you are in big trouble if you declare it.
Which jurisdictions require you to pay tax simply upon on acquiring bitcoin? Most that I see discussed on these forums only require tax to be paid when gains are realized, so when your bitcoin is sold, exchanged, spent, etc. Certainly that is the case in the US. Even if I bought 10,000 BTC 10+ years ago for a dollar, I owe no tax on my ~$400 million stack (nor do I even need to declare it) until I start to offload that bitcoin.