Crypto Exchanges without KYC
- Only a few exchanges offer trading of cryptocurrencies without prior ID verification (Know-Your-Customer).
- Most of these exchanges are very liberal in their interpretation of anti money laundering rules (AML)
- Nevertheless, such exchanges are sometimes very good
- However, deposits with euros or dollar are not possible without KYC.
What makes KYC free exchanges special?
Usually, registration on crypto exchanges involves verification via ID/address. Money laundering regulations (Anti-Money-Laundering, AML) require to clearly assign the identity of users. Especially in the case of euro/dollar deposits and withdrawals, the legislator wants to look closely who is doing the transactions
Some exchanges oppose this by, for example, not supporting SEPA withdrawals. On the KYC-free exchanges listed above (below a certain limit), users can trade Bitcoin & Co without the ID verification and also withdraw cryptocurrencies.
Why use an exchange without KYC?
Privacy is a fundamental right. So if users prefer to refrain from associating their trading activities with their person, this is their right. Of course, any profits made from trading must still be taxed accordingly.
Also: Trusted third parties are a security hole: Over an over data given to third party providers is lost. That also could be a reason to avoid exchanges that require verification.