While the crypto space started with complete anonymity, in recent times crypto exchanges have become centralized now more than ever. This means exchanges now have detailed know-your-customer procedures before and after signing up.
Now, there is a place for KYC rules, as procedures like these nip crimes like money laundering in the bud. However, there are millions of crypto users who want to be anonymous without any interest in these ills. Besides, isnt that the point of cryptocurrencies, decentralization？
This article will explore what KYC is.
What is KYC？
KYC is a system adopted by cryptocurrency and financial service providers aimed at censoring users on their platforms. As stated earlier, the term stands for “Know Your Customer” or “Know Your Client”.
Generally, the KYC process involves asking potential users for basic personal information before getting the service they need. Additionally, some service providers expect the users to undergo a more detailed verification process before they grant access.
This is hinged on the responsibility of these service providers to account for their consumers. These service providers include exchanges and platforms that sometimes need to know their customers.
However, some other crypto exchanges dont request any verification before allowing people to use their services.
They leverage the fact that some customers want to be left anonymous or are uncertain about the use of their data. This is a good enough reason, especially in crypto trading, where transactions worth a lot of money take place.
Why might someone want to avoid KYC in crypto？
Crypto exchanges without KYC are a significant part of the decentralized ecosystem. They provide services to numerous traders and additionally come with some significant benefits:
Absolute decentralization
Anonymity of transactions
Data privacy
Hiding and protection of Identities
With basic knowledge of what no KYC crypto exchanges can offer, we can go on to discuss some major exchanges that provide services without verification.
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