KYC bad decision?

[Aanuoluwatofunmi]

KYC is not a bad decision, we are the ones that made the bad approach, why do we have to go for the system that requires for kyc knowing that such is not too good for our personal privacy and yet we still make complain about it, we should know that one of the means through we can enjoy the crypto era is to completely go private starting from the kind of wallet we use and the way we keep our vital and sensitive information's away from public view.

[Freemind]

And this is despite the fact that Binance and other large centralized exchanges are registered in offshore areas, where, in theory, no one has any legal power over anyone. There is something else here that we do not know. In addition, many people do not like this situation when someone has indirect control over your assets. Everything may gradually change when the existing global financial system begins to collapse.

The fact that Binance (and other exchanges) are based in tax havens (or not) has no effect in this case. It must be taken into account that exchanges must comply with the regulations of each country in which they want to operate, which means that they will have to comply with all legal requirements, since they are going to offer their service outside the borders of those tax havens. Each country has different regulations, although in Europe the countries follow a very similar scale for belonging to the European Union.

Therefore, and due to these regulations, it is the government of each country that imposes the rules, if any exchange does not comply with all the requirements, it will not obtain the license to operate legally, and may face million-dollar sanctions and fines.

These are some of the reasons why exchanges are so strict with KYC, updating their policies every few months or requiring more personal information from users.

[Gyrgen]

And this is despite the fact that Binance and other large centralized exchanges are registered in offshore areas, where, in theory, no one has any legal power over anyone. There is something else here that we do not know. In addition, many people do not like this situation when someone has indirect control over your assets. Everything may gradually change when the existing global financial system begins to collapse.

The fact that Binance (and other exchanges) are based in tax havens (or not) has no effect in this case. It must be taken into account that exchanges must comply with the regulations of each country in which they want to operate, which means that they will have to comply with all legal requirements, since they are going to offer their service outside the borders of those tax havens. Each country has different regulations, although in Europe the countries follow a very similar scale for belonging to the European Union.

Therefore, and due to these regulations, it is the government of each country that imposes the rules, if any exchange does not comply with all the requirements, it will not obtain the license to operate legally, and may face million-dollar sanctions and fines.

These are some of the reasons why exchanges are so strict with KYC, updating their policies every few months or requiring more personal information from users.

If you really think about it, such organizations don’t need any license. You trade on the Internet, who said that the trading operation is carried out on the territory of this particular country. By and large, the only problem is for the user when he wants to withdraw crypto into fiat. Or am I missing something?

[EthereumDev_]

If you really think about it, such organizations don’t need any license. You trade on the Internet, who said that the trading operation is carried out on the territory of this particular country. By and large, the only problem is for the user when he wants to withdraw crypto into fiat. Or am I missing something?

It's true, there are several exchanges that have to complete KYC before making fiiat currency withdrawals, but not just fiat, making withdrawals with cryptocurrencies with quite a large amount also have to complete KYC.

[Gurujebs]

It's true, there are several exchanges that have to complete KYC before making fiiat currency withdrawals, but not just fiat, making withdrawals with cryptocurrencies with quite a large amount also have to complete KYC.

It's not just several exchanges, most of the centralized exchanges now required you to do a KYC before you can even make a deposit not to even talk about the withdrawal. You know what they do now, they don't allow users to generate any deposit address until you complete a KYC verification and the ones that allow deposit will not allow you to withdraw even though you didn't do any yet in the exchange.

Funny enough, when you make deposit and try to complete your kyc, that's when their system continues to reject your kyc because some of them don't want you to be able to withdraw your money again. Centralized exchanges are criminals hiding behind buying and selling privileged of customers.

[KingsDen]

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?

Kyc is a 2 edged sword. It is used by the project owners in order to maintain fair play in their projects. Without kyc many people will open so many accounts and cheat a particular product until it goes bankrupt. Kyc is also used by the government of countries to check crime in case some people who uses different projects decides to commit crime with the project. Kyc in other hand also helps individual to recover their accounts if they are eventually hacked by criminals. These are good examples or advantages of kyc. However submission of personal information and data is not without some disadvantages. Once this data are leaked there are very much not regainable. You are not actually sure of the security of your personal information in whichever database it is stored. Even if it is not leaked deliberately by the project owners, such such a sensitive information could be hacked by criminals and your data used to perpetrate evil. This is why it is not advisable to release their personal information to random projects because their data is yourself representing you in the internet world. You could be surprised that you'll be in a particular country and your data has been used to gain a big loan in another country which will definitely pretty in a very big mess. Criminals also need this letter which will indict you if you are eventually someone in the lord court. So it is better you are very strict with your data and not release it to random people.

[Gyrgen]

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?

Kyc is a 2 edged sword. It is used by the project owners in order to maintain fair play in their projects. Without kyc many people will open so many accounts and cheat a particular product until it goes bankrupt. Kyc is also used by the government of countries to check crime in case some people who uses different projects decides to commit crime with the project. Kyc in other hand also helps individual to recover their accounts if they are eventually hacked by criminals. These are good examples or advantages of kyc. However submission of personal information and data is not without some disadvantages. Once this data are leaked there are very much not regainable. You are not actually sure of the security of your personal information in whichever database it is stored. Even if it is not leaked deliberately by the project owners, such such a sensitive information could be hacked by criminals and your data used to perpetrate evil. This is why it is not advisable to release their personal information to random projects because their data is yourself representing you in the internet world. You could be surprised that you'll be in a particular country and your data has been used to gain a big loan in another country which will definitely pretty in a very big mess. Criminals also need this letter which will indict you if you are eventually someone in the lord court. So it is better you are very strict with your data and not release it to random people.

To ensure fair distribution in projects, I think the KUS is required last. It would be much more fair if you abolish the referral system for which a bad number of points are awarded as a rule. And the KUS does not save you from bot farms in any way, so this is a moot point.

[Freemind]

If you really think about it, such organizations don’t need any license. You trade on the Internet, who said that the trading operation is carried out on the territory of this particular country. By and large, the only problem is for the user when he wants to withdraw crypto into fiat. Or am I missing something?

Technically you're not wrong, but that's not how things work. Although business is carried out over the internet, it also has different regulations in each country. And not only when a user decides to withdraw their funds (or part of them) to fiat. When a user trades cryptocurrencies and makes profits, they must declare them to their country's tax office, as regulations force them to pay taxes on those profits, because economic wealth is generated, regardless of whether those benefits are received in crypto or fiat.

There are still countries (less and less) with very lax or non-existent regulations; Dubai, Portugal, Switzerland, Malta, and Singapore are some examples. But that doesn't mean they will one day propose regulations or make existing ones stricter.The user is ultimately the one who decides how to do things, like not using centralized exchanges, for example, and make things less comfortable, but always a little "more secure" and anonymous.

Below I leave a table with the countries with the highest tax rates on cryptocurrencies:



And now the table with the countries with the lowest crypto tax rates:



Here is a very interesting article (partial source of this information) on this topic: Are You Paying Too Much Crypto Tax? The 16 Best (and Worst) Countries.

[Mr. Magkaisa]

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?

     -    If an exchange has bad intentions, it is possible that it will happen, but if it is already known and reputed and has a good track record in this industry such as Binance, mexc, bybit, and others that are included in the top market As far as I know, they are not that kind of platform.

And that also depends on the research we will do if an exchange is really legitimate, just don't immediately give kyc to any new exchange in this field of crypto space.

[LUCKMCFLY]

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?

     -    If an exchange has bad intentions, it is possible that it will happen, but if it is already known and reputed and has a good track record in this industry such as Binance, mexc, bybit, and others that are included in the top market As far as I know, they are not that kind of platform.

And that also depends on the research we will do if an exchange is really legitimate, just don't immediately give kyc to any new exchange in this field of crypto space.

The truth is that I have never been in favor of doing KYC, because for me it represents something very annoying and I don't see it well, especially in crypto, we already have enough KYC in life with services, to pay for anything we want to buy on the street, everything This contributes to a good KYC, but in part we are people who always have the best intention of doing things, for me this KYC in casinos is already a fact that is mandatory, and it is very difficult to go against this , because things tend to be very stressful for many, I know the biggest challenges that casinos bring, apart from the bigger challenge of KYC when a casino can be a victim of data theft and people who have their crypto can be the target of crimes. Now life is very dangerous, everyone must take care of anything, it's not because he or she is a person who exaggerates everything, but taking good care of oneself doesn't hurt.

That is why I have Always said, the KYC must be fulfilled in the casinos that have the most Reputation, the new casinos must be much more Restrained.

[Altcoin1998$]

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?

There are many central exchanges that require KYC verification with personal documents and mandate mandatory KYC. Moreover, no trading or deposit or withdrawal is possible without KOIC, so KYC is mandatory. But if the central exchange is very popular and trusted then KYC verification should not be a problemNo but in case of non popular exchanges one must be careful before doing KYC verification. Moreover, before investing in a project, in the case where it is asked to do KYC with personal documents and then to invest, I think it is better not to invest in that project and it is better not to use personal documents as much as possible.

[Gyrgen]

If you really think about it, such organizations don’t need any license. You trade on the Internet, who said that the trading operation is carried out on the territory of this particular country. By and large, the only problem is for the user when he wants to withdraw crypto into fiat. Or am I missing something?

Technically you're not wrong, but that's not how things work. Although business is carried out over the internet, it also has different regulations in each country. And not only when a user decides to withdraw their funds (or part of them) to fiat. When a user trades cryptocurrencies and makes profits, they must declare them to their country's tax office, as regulations force them to pay taxes on those profits, because economic wealth is generated, regardless of whether those benefits are received in crypto or fiat.

There are still countries (less and less) with very lax or non-existent regulations; Dubai, Portugal, Switzerland, Malta, and Singapore are some examples. But that doesn't mean they will one day propose regulations or make existing ones stricter.The user is ultimately the one who decides how to do things, like not using centralized exchanges, for example, and make things less comfortable, but always a little "more secure" and anonymous.

Below I leave a table with the countries with the highest tax rates on cryptocurrencies:

It’s decided, I’ll move to the Seychelles, live for a couple of months and then move to Dubai. But you must admit, this doesn’t explain why centralized exchanges launch KUS. And the process of withdrawing crypto into fiat by a counterparty has nothing to do with exchanges at all. In general, I understand what you mean when you write about things that are not the case, but who forces these exchanges to open local offices in almost every country.

[Freemind]

It’s decided, I’ll move to the Seychelles, live for a couple of months and then move to Dubai. But you must admit, this doesn’t explain why centralized exchanges launch KUS. And the process of withdrawing crypto into fiat by a counterparty has nothing to do with exchanges at all. In general, I understand what you mean when you write about things that are not the case, but who forces these exchanges to open local offices in almost every country.

I'm not talking about things in general. When a company generates economic benefit in a country, it must pay taxes in that country, when a user obtains economic benefit in a country, it must also pay taxes in that country, except in the countries that appear in the article in my previous post. This is how tax laws work, although those laws are different in each country.

Exchanges, like other companies, must have tax domicile in each country in which they want to obtain a license, so they must open offices. In my country it is like that and I can guarantee it 100%, although in other countries I don't know what it will be like, but I guess it won't be much different.

The cryptocurrency to fiat withdrawal process has a lot to do with the exchanges, as the exchanges make profits (fees) which must also be taxed. Banks, which are where these cryptocurrencies arrive in the form of fiat, must also pay taxes and charge fees.

[LUCKMCFLY]

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?

There are many central exchanges that require KYC verification with personal documents and mandate mandatory KYC. Moreover, no trading or deposit or withdrawal is possible without KOIC, so KYC is mandatory. But if the central exchange is very popular and trusted then KYC verification should not be a problemNo but in case of non popular exchanges one must be careful before doing KYC verification. Moreover, before investing in a project, in the case where it is asked to do KYC with personal documents and then to invest, I think it is better not to invest in that project and it is better not to use personal documents as much as possible.

That's how I think, of course when we are in an exchange of this style, it is obvious that they will be regulated under the mandates of a government or governments, because in Binance, it is a centralized, reliable exchange that can make a difference, almost all the The world trusts Binance, and yet when in Colombia they asked them to do an investigation, they made sure that all the people in Colombia could not withdraw anything, so that seems to me like an abuse of power, because things cannot and should not If so, an excahgne should not surrender to the motives of whims, governments, and entities similar to those of the police, or something like that, there must be autonomy for the exchanges.

This is the only bad thing about complying with a KYC and even more so when they are on very famous exchanges, if this happens there on these exchanges, I don't want to imagine it on centralized exchanges that are not famous.

[Cryptsafe]

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?

There are many central exchanges that require KYC verification with personal documents and mandate mandatory KYC. Moreover, no trading or deposit or withdrawal is possible without KOIC, so KYC is mandatory. But if the central exchange is very popular and trusted then KYC verification should not be a problemNo but in case of non popular exchanges one must be careful before doing KYC verification. Moreover, before investing in a project, in the case where it is asked to do KYC with personal documents and then to invest, I think it is better not to invest in that project and it is better not to use personal documents as much as possible.

That's how I think, of course when we are in an exchange of this style, it is obvious that they will be regulated under the mandates of a government or governments, because in Binance, it is a centralized, reliable exchange that can make a difference, almost all the The world trusts Binance, and yet when in Colombia they asked them to do an investigation, they made sure that all the people in Colombia could not withdraw anything, so that seems to me like an abuse of power, because things cannot and should not If so, an excahgne should not surrender to the motives of whims, governments, and entities similar to those of the police, or something like that, there must be autonomy for the exchanges.

This is the only bad thing about complying with a KYC and even more so when they are on very famous exchanges, if this happens there on these exchanges, I don't want to imagine it on centralized exchanges that are not famous.

Of a truth exchanges are regulated under the government of the jurisdiction where they find themselves. No government would allow them to operate on their land without they obeying the rules and regulations. Not only that, exchanges are business and profit making organisations  so therefore the government would want to tax them for every transaction they conduct so as to generate revenue for their nation. Most times, these things are not just for the benefit of the nation but for themselves which is why they are hell bent on squeezing the hell out of exchanges .