In the world of cryptocurrency, KYC has become an increasingly discussed and debated topic.
KYC policy also known as Know Your Customer is a set of rules and procedures that financial institutions and other regulated entities follow to verify the identity of their customers and assess the potential risks of illegal activities. KYC policy aims to prevent and detect money laundering, terrorism financing, fraud, and other financial crimes.
KYC policy emerged in crypto due to the increase in crime-related activities associated with the exchange of cryptocurrencies, and  It is important for financial institutions because it helps them comply with international and national regulations that aim to combat financial crime and protect the integrity of the financial system. KYC policy also helps financial institutions avoid legal penalties, reputational damage, and operational losses that may result from non-compliance or involvement in illicit activities.
The KYC policy, in as much as it is very important, is also very tedious, hence leading to a disadvantage which includes many others. First of all, the requirements needed before transactions are sometimes extremely long. Though, it depends on the type of account and the level of risk involved. Some requirements include a phone number, passport/ photograph, ID card, address, source of funding, reference letter, and many more. This leads to a lack of privacy as such detailed information about a person is on the internet, prone to risks like Identity theft, data breaches, malware and viruses, phishing and scam emails, and many others.
Another thing about KYC Is the disparity in regulatory approaches. This creates a complex space between crypto traders and exchanges as KYC requirements adopted in some countries are stringent, and then lenient in other countries.
In response to the increasing need for privacy, non-KYC exchanges like Bitunix have emerged. It serves as an alternative for users who prioritize facelessness and wish to bypass the traditional KYC process.  Although the exchange allows traders to avoid KYC requirements for transactions of over 500,000 USDT, for larger transactions, it acknowledges the need for heightened security and KYC becomes necessary.
Now, after spelling out the importance and the problems of KYC, do you see Bitunix's new trading option as its solution, or do you think there may be a better approach to solving the problems of KYC? Also, it's possible you don't see KYC as a problem at all because of how crucial it is , just state whatever your thoughts on the KYC policy are.
Thank you