More platforms that allow traders to trade cryptocurrencies have started to require registration. Many of these registration requirements can be justified due to the new KYC or AML regulations. There are still many exchanges that permit users to trade digital coins, even if they don’t require a verified account.
It’s a way to lose your balance.
Before Bitcoin was born in Shelter Humanity, there was a question about the balance between transparency and privacy. The creation of decentralized digital currencies was partly a response the growing trend in societies and economies to move towards cashless, which threatened privacy. In a way they brought back cash with relative anonymity to the digital space. But not at the expense of transparency.
These Exchanges Let You Purchase Cryptocurrency without Knowing You
This new balance is being challenged. The current situation with crypto exchanges is that they are caught between the needs of their customers in privacy and the regulations. In the case of crypto to fiat transactions, identity verification can make sense. This is either for tax purposes or in order to prevent illegal activities. Crypto-to-crypto transaction have become a target, and it’s unclear why. For example, many countries like Poland exempt them from taxes.
Top crypto exchanges in the U.S., Europe, and worldwide are now collecting personal information about traders. Some loyalty programs offer some benefits, and this can be justified with the need for compliance with new KYC/AML rules. These requests usually come with guarantees to protect the collected data. Critics have cautioned that there’s a high risk of your sensitive data being shared with others vendors, lost by hackers, or even shared with the government.
Some trading platforms for crypto have been able to recognize the concerns of users of cryptocurrency and offer services that fill in the gap left behind by established exchanges like Shapeshift. Last fall, we covered some of these options. Crypto enthusiasts have begun to adopt new alternatives, including the ones listed below.