Re: Anonymity vs. KYC: The Pros and Cons of Cryptocurrency Exchanges

Quote from: Huppercase on March 10, 2023, 03:52:50 PM

Quote from: EXMON on February 19, 2023, 08:26:19 AM

Hey everyone, I wanted to start a discussion around the topic of anonymity and KYC (know your customer) requirements in cryptocurrency exchanges. As we all know, there are exchanges that require extensive KYC verification, while others operate with little to no verification process.

On one hand, KYC can help prevent fraud, money laundering, and other illegal activities. It can also provide a sense of security and transparency for users who want to know who they're trading with and ensure that their funds are safe.

However, KYC can also compromise anonymity and privacy, which are often highly valued by cryptocurrency users. Some argue that the need for KYC goes against the decentralized and borderless nature of cryptocurrencies, and can even put users at risk of data breaches and identity theft.

So, what are your thoughts on exchanges with and without KYC? Do you prefer exchanges with strict KYC requirements, or do you value anonymity and privacy more and prefer to use exchanges with little to no verification process? What are the disadvantages and advantages of each approach? And what measures do you take to ensure your anonymity when exchanging cryptocurrencies?

Let's have an open and respectful discussion around this topic and hear everyone's perspectives. Looking forward to your input!

List of KYC data breaches.

Doing KYC and not doing have advantage and disadvantage, the advantage is for the exchange to weed out bad people, knows who they are dealing with and help to fish out users from countries that have been sanction, that is the benefits of doing KYC to any exchange. The disadvantage here is that exchanges are known for non-transparency, they can do whatever please them with people information. I have read where Binance leaked users KYC on the internet that was trending for weeks, such things are the thing we fear of not repeating by other exchanges.

Filtering out those bad people on which i do believe that it is one of the benefits that it would have. The main thing on here is on why exchangers or these business are really that applying out such rule it is just that because its mandatory and its something which they would really be needed up to comply for them to continue to operate. We do know that on this crypto world on which having that decentralization and anonymous will always be preferred. Try to look into those situations before on year 2015-2018 on which most of platforms isnt really that strict when it comes to KYC but later on on which they've been making out such transition on which they've been that becoming something like this on which they've been that imposing those kyc compliance due to because that they had become that regulated.

For us users, then there's nothing we can do but to comply with it also. Actually there's no really that something to worry aside from those possible leaks of information but actually we dont really know on what would really be that happening and we might already have that exposed our information on different ways or things or methods on what we've been dealing in the past. Now that we do have such integration then we should really be that prepared and embraced up on the risks.