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!
That's an interesting topic. I actually used to be firmly against KYC. My first account was on Poloniex, and I left right after Circle acquired them and introduced verification. It was the same story with several other exchanges after that – as soon as they enforced KYC, I stopped using them.
I was planning to do the same with Cryptomus. They also started without KYC but then introduced it after getting their Canadian license. However, one of their managers convinced me to stay.
His argument was that basically all major crypto companies are licensed and require KYC now. So today, a lack of verification is more of a 'red flag' for an exchange than a benefit.
Besides, with all the wallet de-anonymization tools available now, you can't really talk about bulletproof anonymity anyway. But the fact that Cryptomus supports a privacy coin like XMR, combined with their transaction policies, ensures a solid level of quasi-anonymity.
So, in the end, KYC isn't an obstacle to anonymity. You can be 'hidden in plain sight' if you understand how cryptocurrencies really work