KYC bad decision?

[Yamane_Keto]

I believe that KYC will be part of the future of cryptocurrencies and will work just like banks, as they will be gateways between cryptocurrencies and cash, and decentralized platforms will develop so that the transfer between cryptocurrencies is easy and automatic. if you do not want to complete KYC, you must start using and promoting open source projects.

It's just like banks. I know people who don't deal with banks and their financial lives are stable.

[ajiz138]

Now it is difficult to avoid KYC for centralized platforms let alone for an exchange almost all exchanges are mandatory for customers to do KYC, this is also part of the government rules and regulations.

We never know whether our data will be safe on their side? Sometimes exchanges also often lose their security due to many hacks occurring and it could be that our documents with millions will be taken by them but we never know about that, what the platform says of course says the data will remain safe in the database.

If you are doubtful about this risk then there is still an option where we can exchange or buy coins on the decentralized Dex platform.

[EluguHcman]

This is indeed worrisome and questionable. Many investors only have a one way sightedness that the implementation of KYC is just for the users account's verifications in other to maintain a safe and secured account without undermining that the provided details could be alternatively be in used elsewhere by the organization without your consent.
I am still yet to figure how possible Binance exchange could submit to being guilty of fraudulent to their exchange site despites the possible provisions of its KYCs that is tended to authenticate and secures registered accounts on their sites.

[Geey]

There are many places in this crypto market where ones personal information is presented for kyc verified. There are many exchanges that have made KYC verify mandatory and many projects also require it to purchase tokens. Do you think it is risky for you? Can they use your personal documents elsewhere?

I think exchanges that require KYC verification are good and not just anyone can open an account because they have personal data... exchanges that require KYC are the same as banks where everyone who wants to open a credit card must collect their personal data and I'm sure the exchange will not mess with your personal data and not even misuse it.

[Ambatman]

I am still yet to figure how possible Binance exchange could submit to being guilty of fraudulent to their exchange site despites the possible provisions of its KYCs that is tended to authenticate and secures registered accounts on their sites.

The KYC is the reason they couldn't pretend and had to plead guilty.
Know your customer as it is called prevents binance from denying they weren't aware what the funds were used for.
Kyc is risky especially when you dealing with huge funds incase of a breach your data would be at the mercy of hackers. Despite its danger the only advantage i can pick from it is that it provides an almost (i said almost) secure and trust method of p2p since the exchange knows who you dealing with and in case of a report can seize their funds. But i don't think this little advantage outweigh its deficits.

[Freemind]

One of users' biggest fears about KYC is not just that governments have (that they can obtain in other ways) their personal data. The number of data thefts and leaks increases every year, and that's even worse since our personal data can be sold on dark web forums for many illicit purposes, which would cause serious problems for any user. I have never liked KYC and have avoided it whenever possible, but in rare cases there is no other option but to use it.

Forum users will be able to find a lot of information about what I'm saying to give you an idea, but I'm still going to leave you some examples of reports from cybersecurity firms:

List of Data Breaches and Cyber Attacks in 2023 – 5,951,612,884 records breached

Breakdown of the 11 most significant 2023 data breaches

[joniboini]

I think exchanges that require KYC verification are good and not just anyone can open an account because they have personal data... exchanges that require KYC are the same as banks where everyone who wants to open a credit card must collect their personal data and I'm sure the exchange will not mess with your personal data and not even misuse it.

What do you mean by good? Do you mean those that follow regulations or are registered, so you can sue them if they lose your money? If that's not what you meant, then I'm not sure what kind of exchange is bad if they don't ask for KYC. We've seen Kucoin or other exchanges allow non-KYC users in the past, and you can access them just fine. Some of them even provide compensation after they suffered one or two hacks, regardless of your KYC status. In fact, data leaks are likely going to happen more often if every service that you need to use requires KYC.

I tend to look for non-KYC options to avoid my data being sold or leaked, considering how sloppy most services are in regard to their database security. You can't fault people for distrusting KYC when there is a news of database leak from a major company like LastPass which contains sensitive data like users' passwords.

[dekafee79]

Of course, KYC is risky for us because it requires secret data. But we have no choice, all centralized exchanges ask for KYC. I join local exchanges in my country, we must do KYC to join it. However, I think it is quite safe because the local exchanges is under control by the government. But for global exchanges, it may be riskier because no institution regulates them.

I agree with you, KYC is very risky because it contains our privacy data. 
However, all exchanges require us to fill out KYC.  it's mandatory. 
Meanwhile we transact there.  I suggest choosing a reputable exchange, so that our KYC is safe. 
Don't provide new exchange  that doesn't have a good  reputation yet.

[dkbit98]

Doing KYC and sending personal documents to a bunch of websites is certainly a bad decision.
I could understand doing KYC to one or two services you need to use, but risk for hacks and leaks is getting much higher if you start doing this on more websites.
And besides, there are more than enough decentralized exchanges like Bisq, p2p trading platforms, and other exchanges that dont have any kyc at all.
It is possible to to operate just fine in crypto space without kyc and without holding coins on exchanges, I know plenty of people like that.

[Senin]

We can talk for a very long time about the bad or useful qualities of KYC checks, but this will not at all affect the further spread of KYC in the cryptocurrency market. Almost all exchanges will sooner or later succumb to pressure from states and their governments and will require us to undergo KYC, otherwise states will close the cryptocurrency exchanges themselves. This must be taken into account and prepared for in advance.

The current tense situation with various military conflicts in the world will only accelerate this process. States simply cannot allow large amounts of cryptocurrency to move on their territory without their control. The question is not even that they want to control everything, but that cryptocurrency can be used to harm the interests of society.

[DrBeer]

There is, in my opinion, only one nuance: whether your data, which has been provided for KYC, can be used for purposes that may cause you harm or loss. For example - can your data be used for illegal activities. For example, pretending to be you - when registering a car accident, obtaining a loan, or similar actions.... If such actions, with that set of your data, cannot be performed - what are the risks?
I will say by the way - in hospital, in internet stores, in banks - there is much more information about you, and it is more accessible than KYC data

[Salahmu]

There are many places in this crypto market where ones personal information is presented for kyc verified. There are many exchanges that have made KYC verify mandatory and many projects also require it to purchase tokens. Do you think it is risky for you? Can they use your personal documents elsewhere?

Actually for me I like the fact that most exchanges are kyc enabled and however I don't think our data could be use for other purposes but we should be very careful in times of chosen exchanges that we can use our private data on because there are so many minor exchanges that does not have enough security that can protect and secure the privacy of it users as such leading to users data being stolen by hackers for illegal purpose, so perhaps is better to go for a very reputable exchange that Values the security of it users.

[MrSpasybo]

We can talk for a very long time about the bad or useful qualities of KYC checks, but this will not at all affect the further spread of KYC in the cryptocurrency market. Almost all exchanges will sooner or later succumb to pressure from states and their governments and will require us to undergo KYC, otherwise states will close the cryptocurrency exchanges themselves. This must be taken into account and prepared for in advance.

The current tense situation with various military conflicts in the world will only accelerate this process. States simply cannot allow large amounts of cryptocurrency to move on their territory without their control. The question is not even that they want to control everything, but that cryptocurrency can be used to harm the interests of society.

We live in a complicated world, many exchanges require KYC to comply with anti-money laundering or terrorist financing regulations, users have no other choice. If users do not want to perform KYC, DEX, P2P or OTC are alternatives but have many limitations in terms of products and services.

I think the decision belongs to the user, depending on their risk tolerance. A professional trader will not give up trading for living just because the exchange requires KYC.

In addition, we provide info in public services everywhere. When hackers attack and appropriate data from these facilities, we will also have to face the risk of losing important personal data such as copies of passports, fingerprints, and social security numbers.

It is very difficult to change other people's opinions, so we can only protect our own information to the maximum extent and choose the most reputable trading platforms (CEX).

[Freemind]

Actually for me I like the fact that most exchanges are kyc enabled and however I don't think our data could be use for other purposes but we should be very careful in times of chosen exchanges that we can use our private data on because there are so many minor exchanges that does not have enough security that can protect and secure the privacy of it users as such leading to users data being stolen by hackers for illegal purpose, so perhaps is better to go for a very reputable exchange that Values the security of it users.

The problem is not that your data is on an exchange (or on a server that belongs to that brand). The problem is the security it has. Every day I see how many cyber attackers violate the security of global companies with a large security budget and top-level professionals. Ransomware (and other variants) grows every year with hundreds of attacks and 93% of companies are not prepared to respond. That is the biggest problem with KYC and the biggest fear we should have as users.

[gunhell16]

There are many places in this crypto market where ones personal information is presented for kyc verified. There are many exchanges that have made KYC verify mandatory and many projects also require it to purchase tokens. Do you think it is risky for you? Can they use your personal documents elsewhere?

Maybe it depends on your trust in an exchange platform if you give kyc to it, just like Binance. Also, if we know that it is legitimate and reputable, I don't think they will use our personal information for bad things.

Anyway, of course, the choice is still in our hands to follow in this matter. Just be careful with the exchange that we choose, especially if it is new to the field of the crypto business industry that we live in today.