What if you do not want to share your personal information with cryptocurrency exchanges? This question worries a lot of people who want to enter the crypto industry and this is not surprising as blockchain is meant to be an anonymous way of conducting payments through it. As more personal information you share with crypto services, as less anonymous you become. Nowadays there are a lot of tools that analyze transactions in the blockchain.
On the one hand, their development leads to the fact that the crypto industry becomes safe in terms of money laundering and financing of terrorism, on the other hand, this jeopardizes the basis of the technology — anonymity. Relatively speaking, by providing the service with your personal data, you open your face in the world of cryptocurrencies. If such information is not available to a regular user, then large services receive a significant amount of data regarding your financial transactions, comparable to traditional financial institutions. What if hackers gain access to this data? This is really scary. There have already been cases of personal information theft in the crypto industry, and the stolen information is freely sold on the darknet.
KYC and ALM strengthen the old financial system, being fairly effective leverage on the crypto industry. Moreover, due to the lack of a proper verification mechanism, entire countries are cut off from the global payment system. The community rightly sees a direct threat, as many services start to abuse these procedures, for example, they ask to provide comprehensive information on the origin of funds. Sometimes the user can interpret this as purposeful retention of funds, but if you a real owner of these funds — you will be able to prove it. In any case, it can take quite a long time, and it is very sufficient in a such volatile market.
Verification is also required for users who would like to withdraw fiat currencies via bank transfer, to credit cards or electronic wallets. As cryptocurrencies are not widely accepted, most people sooner or later convert crypto into fiat currencies. And if you are not interested in sharing your personal information with third parties, you should choose the service that provides exchange without verification. Even in 2020, there are still some services that remain true to the tradition of anonymity in the crypto world and it becomes rarer.
For example, using cryptic exchange you are allowed to withdraw USD to bank cards, PayPal, Webmoney, and cash worldwide without a need to send any identification documents, as well as proof of funds. It is important to note that if your goal is to withdraw funds to bank accounts, then, in any case, you will need a certain package of documents, as required by banks. Services that require verification prohibit sending funds to third parties, and with services that do not require verification, you can send funds to anyone without any restrictions. Since information is worth its weight in gold, anonymity, and freedom have become even more valuable.
