KYC Laws - Reading Assignment

Privacy Coins - Ultimate Course
#182

  1. It is written by global enforcers with the purpose to have tabs on cryptocurrency exchanges and their users activity.

  2. Photo’s of IDs and Passports to name a few.

  3. The KYC is asking the exchanges to enforce it on their users.

  4. Ultimately the KYC and AML will have your personal info along with your financial info within the crypto currency exchanges.

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#183
  1. Who writes KYC/AML laws, and what is their “official” purpose?
    Financial Action Task Force

Providers of crypto-related services, such as exchanges and custodial wallets, are considered “obliged entities” and will have to comply with the union’s AML regulations in the future. That means abiding by the rules applicable to other financial institutions including the obligation to perform customer due diligence and submit suspicious activity reports. That also applies to investment firms, tax advisors, accountants, notaries, and lawyers who transfer or receive payments equivalent to €10,000 and more.

  1. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    passport, a selfie, information about where they work, where they live, and all other types of data that will surely be stored in an insecure way.

  2. Who is responsible for enforcing KYC compliance?
    Exchanges

  3. How is KYC a threat to privacy? Who might gain access to what ?
    All your transactions can be tracked to your identity

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#184

  1. The purpose of KYC is to “Know your customer”. It is a blatant attempt to limit privacy in the name of safety and anti-money laundering. It is a way for governments, banks and corporations to have more control over cryptocurrency’s

  2. The type of information that is collected for KYC compliance. Government issued ID’s, drivers license or passport and a selfie to cross reference/verify your identity.

  3. Any regulated entity selling cryptocurrency. Must obtain KYC from its customers.

  4. KYC is a major threat to privacy. If you know every customer there is no anonymity.
    Exchanges and centralized databases always get hacked. Exposing thousands or millions of users personal date. Witch could lead to targeted attacks and identity theft.

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#185
  1. Financial Action Task Force sets the standards for G20 nations. Then each jurisdiction has its own requirements.
  2. KYC. Photo ID license or Passport. Address, cell phone number. Birthday. SSN in the USA.
  3. Exchanges and digital asset custodian/businesses.
  4. Data in a centralized depository can be hacked and then released to hacker sites to be sold and then abused. Institutions could use the info against you if it is their posture to attack you.
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#186

  1. Governments and departments related to the state who holds legal responsibilities.

  2. ID, verification of living address, Social Security Number, Tax registration number, citizenship number.

  3. Mainly the exchange sites or exchange companies.

  4. KYC means to give certain essential informations to the related exchange sites or companies, which eliminates privacy, these exchange sites/companies will share the related KYC informations with the governments or state authorities in case it was requested formally from them.

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#187

1. Who writes KYC/AML laws, and what is their “official” purpose?
Financial Action Task Force (FATF) and the EU’s Fifth Anti-Money Laundering Directive (AMLD5) write KYC/AML.
Their purpose is anti money laundering.
2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
Name, address and birthday is collected.
3. Who is responsible for enforcing KYC compliance?
The crypto exchange like Binance etc…
4. How is KYC a threat to privacy? Who might gain access to what ?
It’s a threath of your right of anonymity.
Hackers could get acces to your identity.

2 Likes
#188

KYC Laws - Reading Assignment

  1. Who writes KYC/AML laws, and what is their “official” purpose?
    Financial Action Task Force (FATF) and the European Union (EU), who is founder of the Fifth Anti-Money Laundering Directive (AMLD5).
    The purpose is stricter controls on buying and selling cryptocurrencies, and increasing compliance.

  2. What type of information is usually collected for KYC compliance?
    A picture of customers passport or driver license, a selfie, and some addresses where customers can be found.

  3. Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)
    The crypto exchanges.

  4. How is KYC a threat to privacy? Who might get access to what?
    The KYC data are stored on a centralized servers, and these data could be vulnerable to hackers that would get their hands on customers data. They could then use those personal information to create “fake” accounts, in use for criminal activities.
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#189

  1. FATF, to put know your client rules in action and see who is buying or selling cryptocurrencies and increased compliance.

  2. send a picture of their passport, a selfie, information about where they work, where they live, and all other types of data that will surely be stored in an insecure way.

  3. all companies that allows the trading and the movement of crypto with a certain grade of centralization.

  4. as a matter of fact, informations such as ID, proof of residence and etc will reveal not only your financial status which as itself is a big matter but also reveals your personal identity which in some cases there are restrictions on some areas(as its been called high risk areas) and I believe its against the whole philosophy of free financing and the bans again will show up. After all what differences crypto will be bringing to our lives if we are still following the previous infrastructure?

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#190
  1. Who writes KYC/AML laws, and what is their “official” purpose?

The Financial Action Task Force (FATF), an independent inter-governmental body that develops and promotes policies to protect the global financial system against threats such as money laundering and terrorist financing

  1. What type of information is usually collected for KYC compliance?

send a picture of their passport, a selfie, information about where they work, where they live

  1. Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)

Exchanges, banks, trading platforms

  1. How is KYC a threat to privacy? Who might get access to what ?

Privacy is essential freedom, its shapes our society and is int’l recognized human right and the foundation of modern democracy, so if you don’t value freedom, or stand up for privacy as a right, society, your freedom and rights will be eroded over time.

Data breaches, - ie your overall identity, specifically Passport picture, passport ref numbers, signatures, personal address - drivers license ref numbers - happen as business are often not able to protect the data - a or have a cadence to delete or update or restrict its unwarranted use around the world, between people, jurisdictions, public sectors and criminals

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#191

Financial Action Task Force (FATF).

Personal info like, pictures of passports, selfie, information on residence.

Centralized Exchanges.

It removes the anonymity. Also, the Information you provide is probably stored on a centralized newtwork which can be hacked or given to governments. Governments can link your transactions to your personal info and monitor you. Today’s examples are the ledger hack revealing customer personal info and Facebook giving info to police.

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#192

[quote=“Grant_Hawkins, post:1, topic:13029”]

  • Who writes KYC/AML laws, and what is their “official” purpose?
    The goverment ( Financial action task force) FATF

  • What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    Pictures of passports, selfie, information on where they work, adresses.

  • Who is responsible for enforcing KYC compliance?
    The exchanges.

  • How is KYC a threat to privacy? Who might gain access to what ?
    It removes the anonymity from cryptocurrency. Information of your idenitity from a transactions are stored at centralised newtwork where goverments can observe your transactions and in the worst case scenario be hacked/leaked. So your transactions are no longer anonymous.

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#193
  1. Who writes KYC/AML laws, and what is their “official” purpose?
    Politicians and regulators. Prevent money laundering, terrorist financing…
  2. What type of information is usually collected for KYC compliance?
    Passport, proof of address
  3. Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)
    Exchanges, custodial wallets…
  4. How is KYC a threat to privacy? Who might get access to what ?
    If KYC data is not stored securely hackers can get access to it
1 Like
#194
  1. Who writes KYC/AML laws, and what is their “official” purpose?
  2. What type of information is usually collected for KYC compliance?
  3. Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)
  4. How is KYC a threat to privacy? Who might get access to what ?

1- Control devices set by goverments and stsate agencies to “protect us from ourselves”.

2- National I.D. numbers and proof of residence, at least.

3- The platforms.

4- Having access to private keys AND I.D.s, they can follow the flow of your money.

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#195

They would only have access to public keys and addresses, not the private keys itself. Which is enough to track the user funds and remove privacy from the blockchain. :slight_smile:

1 Like
#196

yeah, you are right, I meant public key, thanks!

#197
  1. The financial action task force gives guidance and local governments write the regulations. The “official” purpose is to prevent terrorism financing and money laundering. Just so everyone knows…only .34% of transactions in cryptocurrency were illicit in 2020. Most of the crimes are perpetuated with the US dollar. The real purpose is to exert control: to make sure they get their cut in taxes, and possibly confiscate one’s assets like the USA did with gold in 1933.
  2. Unfortunately, everything is collected with KYC including name, address, government issued ID, contact information, social security, etc. if they could get your blood type and genetic profile… they would. :slightly_frowning_face:
  3. The exchanges are given the task of enforcing KYC and they wish they didn’t have to.
  4. It’s a threat to privacy because while governments get all the information to make sure they get their cut and maintain control…they don’t responsibly protect the information. The government, the exchanges, even ledger get hacked and now we are bait for the real criminal.
1 Like
#198

KYC Laws - Reading

  1. Government regulators like the Financial Action Task Force(FAFT) writes laws.
    There official purpose is to prevent and financing of terrorism and money laundering.

  2. Information that are collected for KYC(Know Your Customer) compliance are:

  • passport or ID

  • proof of address

-proof of work

  • selfie of self etc.

  1. Exchanges are responsible for enforcing the KYC compliance.

  2. Government and its agencies and unauthorized persons like criminal, might get access to your funds and transactions by getting hold of your private details linking you to transactions. This will defeats the whole idea of transactions being anonymous, which the bitcoin whitepaper on privacy is trying to preserve.

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#199

  1. To stop money laundering and prevent financial risks, governments and institutions like the Financial Action Task Force write KYC/AML laws.

  2. For KYC compliance they collect your full name, birth date, address, picture of your passport or driver’s license, a selfie, employment information, and bank account info.

  3. The cyrptocurrency exchanges are responsible for enforcing KYC compliance.

  4. KYC is a threat to privacy because your identity is connected to all your transactions which also increases the probability of your identity getting hacked.

1 Like
#200

  1. Know Your Customer (KYC) laws are issued by the Financial Action Task Force (FATF), and the Anti-Money Laundering laws are enforced by the European Union’s Anti-Money Laundering Directive (AMLD). FATF is an intergovernmental organization that operates globally to prevent the misuse of virtual assets for money laundering and terrorist financing. The AMLD is a legislative act that protects against virtual asset-facilitated crime. Over the years, this directive has been improved upon to prevent criminals from finding loopholes.

  2. In centralized cryptocurrency exchanges, KYC compliance collects identity documents such as a driver’s license, passport, or identity card.

  3. All centralized exchanges are responsible for enforcing KYC compliance.

  4. KYC poses a serious threat to privacy because ID documents collected by exchanges are not secured. These documents can be hacked and sold for profit places like the dark web or used for laundering money by using fake crypto accounts with valid identities.

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#201

  1. Governments. They write them to counter illegal, criminal, and terrorist activities

  2. Personal information like your name, address, bank account, spending behavior, income, etc

  3. (crypto) Banks and (crypto) exchanges

  4. Exchanges and banks might get hacked and criminals might gain access to all personal records. Organizations, governments, and companies might buy or gain access to your personal data in order for their personal benefits. Follow your beheaviour, sensorship or sell your data.

1 Like