It would seem that we have lost the War on KYC

I’m sure you all know what KYC is and why is important… But also that it is a scourge. By relinquishing extensive personal data in order to enter an ecosystem focused on privacy and anonymity, we shoot ourselves in the feet.

Every CEX has required KYC for a while now, and if they don’t, their on-ramp does. (Looking at you, kucoin) and most DEXs don’t have on-ramping features. If they do, they are outsourced to third party source which require KYC. Even services like the Brave browser need you to hand over your ID to claim BAT.

Metamask’s Wyre integration is rather well known for being useable without any KYC besides the bare minimum card info to make the transaction although I personally have never been able to get it to go through for unknown reasons, that and other problems being apparently extremely common.

P2P buying and selling still seems to be a viable way to convert fiat to crypto and back however due to potential trust or pricing issues, peer to peer is not ideal.

To put it simply, the only totally reliable way to acquire cryptocurrencies without already owning some is through mining or ATMs (which are are notorious for high fees and inaccurate pricing, and some bitcoin ATMs even require kyc. Yikes). The option for play to earn services or similar alook exist but usually require initial investments, and cannot be used to on-ramp yourself… Also most of them are scams.

ATMs are not ideal and neither are the P2E services. That leaves us only with mining.

I don’t think I need to explain why mining isn’t a great option, but I will anyway. Mining is incredibly expensive, and doesn’t make that much profit unless you buy a literal warehouse full of GPU s or ASICs.

So what’s the implication of this thinly veiled rant of mine? Well it’s pretty much that we’re screwed. The governments have not succeed in taking away all of your crypto privacy but they’ve made it real damn hard to keep.

Crypto regulation for CEXs is not inherently a bad thing but if regulations and restrictions make there way out of exchanges, that would be horrendous. So naturally, the enemies of cryptocurrency are going to try to make it hard to avoid exchanges because of you can avoid exchanges, you avoid the government.

We allowed this to happen by allowing CEXs to exist (they directly contradict everything crypto stands for) and now or only hope is to well… hope.

Either that, or do what we’ve been doing, and sacrifice the objective of cryptocurrency in order to make a quick buck of fiat.

/end rant

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13 thoughts on “It would seem that we have lost the War on KYC”

  1. Wallets are going to be regulators next target. While they can’t just require it, they can make exchanges based in their countries only interact with KYC’d wallets. Trezor already planned on its own to add KYC, it’s not far fetched at this point

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  2. But isn’t the idea of privacy coins that you get kyc’d at the on-ramp but then get to transact privately within the ecosystem? So it’s know that you are in the ecosystem but not known what you are transacting.

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  3. Privacy? I opened an acc in Binance yesterday and they kept pushing KYC until I said delete my stuff I FEAR FOR MISUSE OF MY DATA.

    Not sure they even deleted. They have my id, my address, my photo, they wanted a video with my voice.

    FUCK PRIVACY!

    Forgot to say, I had to give them photos of my phone info. All that and I did not had done a single transaction in their system.

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  4. At least they can’t see my dong. Oh wait… that dick pic with my seed phrase written on it that I sent to that hot chic interested in crypto… I think I have been scammed guys…

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  5. There is no privacy any longer. We all carry cellphones with GPS, drive cars with GPS, drive through vehicle licence plate readers daily, join points clubs everywhere to get a free whatever the fuck on our birthday, many post every social detail or their life and family life on social media.
    For many people literally their whole day to day life can be rendered by a subpoena or search warrant at most effort. Financial privacy is still two people can keep a secret if one of them is dead.

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  6. Why is kyc focused on us? It should be aimed at people who create new coins and anyone who starts a platform, ideally kyc could be a way to protect us by gathering data on the people who have the ability to rug us, but instead they are using it to monitor us.

    1984

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  7. I don’t have a warehouse filled with gpu,s or Asics and i made plenty of profit during the bull run. It depends on what you payed for your hardware and when you start. For me i view it as the same thing as buying the coin itself just over a much longer time frame and lower taxes than buying it directly on cex. That 50c a day that can turn out to be 100$ a day later on down the road.

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  8. I don’t think there’s anything contradictory about using regulated exchanges, it’s only a problem if you’re using old fashioned transparent chain coins.

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  9. Almost everything in the existing system is KYC’d as it is. (Short of paying for something in person with cash) Why anyone would expect crypto to be any different boggles my mind.

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