- Laws are written by governments to prevent the flow of money for or from illicit activities or to hide it from governments. Exchanges however determine how they want enact enforcement.
- Passport or photo IDs, along with other identifying information.
- The exchanges where a user trades.
- It allows exchanges to tag a user and the transactions that they make. This can be very valuable information not just for governments to know where and how much money a citizen has, but also for malicious actors to know who they should target for a scam. As we have seen time and time again databases that contain this information can be compromised.
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FATF write the laws to protect us from the boogeyman
What type of information is collected? I can’t remember what coinbase asked for. I remember for sure my ID. Probably enough for someone to steal my identity if the exchange was hacked.
Exchanges bear the burden of enforcing kyc, further increasing cost and making the barrier for entry worse for budding entrepreneurs.
KYC is a threat to privacy because it’s against the whole idea of CRYPTOcurrency, and if they decide they disagree with you in their increasing attack on free society, they can and will cut off everything they can.
Whoever has access in the centralized service would be able to access your information. hackers and disgruntled employees alike.
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[quote=“Grant_Hawkins, post:1, topic:13029”]
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Who writes KYC/AML laws, and what is their purpose?
KYC is written by the Financial Action Task Force (FATF) in the US and Fifth Anti-Money Laundering Directive (AMLD5) in Europe -
What type of information is usually collected for KYC compliance?
ID card information, face verification, proof of address, and biometric information.
- Who is responsible for enforcing KYC compliance?
In the US The Consumer Financial Protection Bureau, in the UK Her Majesty’s Revenue and Customs
(HMRC) along with Other agencies include National Crime Agency (NCA) and the Serious Fraud Office (SFO). Europol enforce KYC/AML in Europe.
- Explain how KYC is a threat to privacy.
You essentially give up your identity which the government can access via the enforcement agencies in specific countries. You information is also at risk should any company that holds your information be hacked or leaked by a bad actor.
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1.)The Financial Action Taskforce (FATF) is responsible for KYC laws. Their official purpose is to enforce KYC laws and to put stricter controls on buying and selling crypto to increase compliance. (OBEY)
2.)Information collected for KYC can include name, address, passport, selfie, work location and other data.
3.)groups responsible for enforcement include exchanges, investment firms, tax advisors, accountants, notaries, and lawyers who transfer payments equivalent to 10,000 Euros or more.
4.) KYC is a threat to privacy and Bitcoin because if institutions and exchanges have access to your data, we know this info can be sold to other groups including criminals which can then be used against you.
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- KYC/AML laws are written by Financial Action Task Force with the declared intention of stopping money laundering.
- It’s picture of passports, where you live.
- Governments are responsible for enforcing KYC compliance.
- KYC is a threat to privacy because user’s personal data is being collected by crypto exchanges.
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Governments and state agencies write KYC/AML laws The purpose is to put in place stricture controls on buying and selling cryptocurrency
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Personal data including name, address, bank account, scans of physical ID, etc.
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The centralized exchanges must enforce KYC to appease regulators
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It connects your identity to your crypto assets. If an exchange is ever compromised, you’re privacy is therefore compromised and any leaked data can be used nefariously.
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- Who writes KYC/AML laws, and what is their “official” purpose? — government regulators, prevent “suspicious activity”
- What type of information is usually collected for KYC compliance? — passport and id info
- Who is responsible for enforcing KYC compliance? (Hint: it’s not the government) — exchanges
- How is KYC a threat to privacy? Who might get access to what ? — your crypto holdings
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Governments and the Financial Action Task Force (FATF) write KYC/AML laws to prevent anti-money laundering, prevent tax evasion, and to have a say in the growth of the future technology.
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Anything and everything that provides identity verification is collected for KYC compliance purposes. So that includes name, age, address, passport, occupation, purpose of transaction, transaction amount, members involved in the transactions…
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Companies are then responsible for enforcing KYC compliance. In some cases, companies do not agree with the ethicacy/morality of the KYC or want to forgo the hassle of enforcing KYC, and so they limit customers’ actions e.g. Paypal does not (currently) allow users to withdraw crypto from Paypal.
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KYC is a threat to privacy as it is another attack vector that hackers can use to gain information for their own malicious purposes. Those malicious purposes may even come from the government themselves as we slowly head towards an Orwellian society.
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- FATF writes the laws and they are supposedly monitor suspicious criminal activity in efforts to stop it.
- Passport, selfie, proof of bill or address, bank account, SSN, etc
- Exchanges
- It is a massive personal data collection. it keeps track of your bitcoin holdings and a history of transactions, etc
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- Governments write KYC/AML laws and the purpose is to have stricter controls on buying and selling cryptocurrencies.
- The information collected for KYC can contain a picture of an ID/Passport, a photo of the user and information about where they work and live.
- The exchanges are responsible for enforcing KYC compliance.
- KYC is a threat to privacy because they can track when you buy or sell cryptocurrency, so it removes the anonymity, allowing them to track that cryptocurrency’s history.
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the government, their purpose is to pervent money laundering, or so they say.
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personal data, bank data, wallet address…
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the exchanges
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it would be easy to connect transactions back to everyone if they would have all our adresses.
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Who writes KYC/AML laws, and what is their “official” purpose? | The writers of the KYC/AML laws are the Financial Action Task Force (FATF), and their “official” purpose is to help prevent money laundering.
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What type of information is usually collected for KYC compliance? | A picture of one’s passport, a Selfie, Information about where one works, and where one lives.
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Who is responsible for enforcing KYC compliance? (Hint: it’s not the government) | Crypto exchanges.
How is KYC a threat to privacy? Who might get access to what ? | First of all, crypto exchanges will be able to get one’s personal information of deny you service, as well as
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- Official purpose is to prevent money laundering, written by the european union.
- personal details and suspicious txs
- government and companies aligned with it
- third parties gain access to your movements and personal details which may be stored insecurely and vulnerable to hackers.
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KYC/AML laws are written by governments as well as intergovernmental agencies such as the FATF. Their “official” purpose is to create global standards for crypto assets by creating stricter controls for buying/selling cryptocurrencies and ensuring anti-money laundering compliance.
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For KYC compliance, a copy of government-issued ID is usually required, as well as information about what a user does as an occupation, and where the user lives, banking information, etc.
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The crypto exchanges are responsible for enforcing KYC compliance laws in the jurisdiction where they wish to operate.
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KYC can be a threat to privacy because it is easier to link crypto transactions to a user. Also, the personal data obtained by exchanges for KYC compliance could be compromised if the exchange were to be hacked into.
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- Financial Action Task Force. Prevent money laudering
- names, govt issued ID, address
- companies that allow trading and movement of currencies
- removes anonymity
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KYC are almost exclusively written by govt regulators. Their official purpose is for anti money laundering or AML purposes.
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The typical information collected is a copy of a photo id, info about place of work, residential info, and the requirement to take a selfie.
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Exchanges and custodial wallets have to enforce KYC rules.
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Anonymity is gone and one can assume that if exchanges are hacked, your info becomes exposed.
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- The KYC/AML laws are written by the governments and the purpose is to avoid money laundering.
- Personal data (a valid passport or national id card)
- It removes the anonymity from the crypto owner and the government can check your tx and verify the provenance of the money and force you to pay taxes.
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The financial action task force. Their purpose is to try to prevent companies from doing business with the wrong types of customer and that they are not aiding in money laundering. KYC (Know your Customer) and AML (Anti Money Laundering) is what they stand for.
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Selfie Photo + Passport or Government issued ID.
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Financial Regulators.
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KYC means it is hard to remain anonymous when using cryptocurrencies, so it may be relatively easy for governments and their agents to link an individual to for example a bitcoin address or an ethereum account.
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Who writes KYC/AML laws, and what is their “official” purpose?
Regulators and the politicians/states behind them. What they want is basically track crypto currencies relatedness activity. -
What type of information is usually collected for KYC compliance?
Official identity, address, professional activity, transaction history. -
Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)
Exchanges and other actors who offer crypto related services (lawyers, notaries, etc.). -
How is KYC a threat to privacy? Who might get access to what ?
Because it forces the leaking of private informations. The problem is that the entities accessing these informations might not work in interest of society. As an example, an autocratic government might know every little transactions made by an individual, even if that individual is not living under the rule of that government .
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1. Who writes KYC/AML laws, and what is their “official” purpose?
FATF = Financial Action Task Force
It is “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”
https://news.bitcoin.com/fatf-global-standards-crypto-assets/
2. What type of information is usually collected for KYC compliance?
Some common requirements are,
Develop customer identification processes
Identify individual customers through their official identity documents
Verify corporate entities through corporation documents along with verification of beneficial owners
maintain risk profiles of customers
Take AML compliance measures if required
https://shuftipro.com/knowledgebase/kyc-compliance
Information I know of that is needed for KYC is passport, ID, social security number, home address, full legal name etc.
3. Who is responsible for enforcing KYC compliance?
Financial Industry, Fintech, Real estate sector, gaming industry, legal sector, precious metals and art dealers
4. How is KYC a threat to privacy? Who might gain access to what ?
KYC is a threat to privacy because your information can get leaked. You are storing your personal data with a company and if their servers get hacked, your information can get stolen. You must trust this company to not be hacked. Also if you buy crypto with a centralized exchange that requires KYC, your crypto transactions are generally not truly anonymous as it can be very easy to connect the dots with what wallets you own or have interacted with that relate your personal real life identity.
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