One day an exchange like Binance may block a user's funds and will request for KYC verification before releasing the funds. How will you go about this?
We use Binance internally as an "institution" we are fully KYC/AML verified. User won't interact directly with Binance we only use their "api' for trading and liquidity.
I am looking at it this way. Some shady users realize using your platform does not require KYC. They send in funds from suspicious sources in hope of receiving "clean" funds. Authorities that have been trailing the funds ask binance to block the funds and ask you to prove source of funds (another KYC verification)
1. How are you going to verify the source of funds from unverified users because trust me binance will freeze funds from suspicious transaction if asked by law enforcement authorities?
2. How will you refund the users, since you already claimed to them that they don't need verification to use your platform?