But I don't think it's fair; to be guaranteed that your funds are safe, for example, but were suddenly frozen for no reason at all.
I couldn't agree more.
What's happening is they're displaying that fancy "
no-KYC" banner just to attract customers while enforcing it silently under the hood.
If a Swap Service doesn't have a choice but to enforce KYC requirement, they shouldn't advertise themselves as "
no-KYC exchange" or at least mention it in their TOS that the user complied with.
An honest exchange should be transparent on what they're enforcing. (
even though it's hard to find like a single line in the exchange's terms of service, that still counts)
There are two cases here:
- It's the user's fault if he didn't read the service's TOS, Privacy Policy or FAQs where it's stated the above.
- Or the service is a scam/honeypot/mismanaged if the user doesn't agreed to a TOS that they may enforce "ShotGun KYC".