KYC Laws - Reading Assignment

Privacy Coins - Ultimate Course
#102
  1. To prevent money laundering.
  2. Personal information about the customer.
  3. The service provider (exchange).
  4. They can link your addresses to you and if the exchange gets hacked, who know who might get that info.
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#103

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

The FATF issue global standards for crypto assets. And on a local scale local government financial regulators.
The official purpose is to protect against fraudulent activity.

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

A selfie, A scan or photo of your passport photo page, proof of address like a copy of a recent utility bill or bank statement and in some cases details of the work you do, or what your annual income is a;ong with other such details.

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

Crypto service providers like exchanges or custodial wallets.

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

The sensitive details required of KYC compliance leaves the user very exposed as it gives the requester an in depth and personal profile of the user.
If these details get hacked, users identities could get stolen and used to carry out fraud.
These details could also potentially be requested by the government authority. Therefore highlighting all transactions carried out by that user. If the government determines aspects of the spenders transactions to be illegal the government will know exactly where to find the user.

#104
  1. Who writes KYC/AML laws, and what is their “official” purpose?
    The governmental authorities. The “official” purpose is to prevent money laundering.
  2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    A persons address, ID, telephone number, picture,
  3. Who is responsible for enforcing KYC compliance?
    The exchanges
  4. How is KYC a threat to privacy? Who might gain access to what ?
    The information of a hacked crypto exchange can be used by criminals to fake an identity. The government can demand access to every information on an exchange. Depending on the low of the country you could be in trouble. KYC removes the anonymity, which undermines the initial purpose of a cryptocurrency.
#105
  1. Regulators. Their official purpose is to combat money-laundering and the funding of terrorism.
  2. Usually some form of government ID and in some cases proof of address.
  3. The exchanges are responsible for enforcing KYC.
  4. Private information such as identity documents might get in the hands of hackers or even sold on the dark web.
#106
  • Government agencies to protect against money laundering.
  • Personal data: bank accounts, ID, photo…
  • Crypto Exchanges
  • Transactions are not anonymous, because transactions can be linked to your personal information. Your identity could be compromised if data were to be leaked.
#107

National and international government bodies write Know Your Client/Customer (KYC) and Anti-Money Laundering (AML) laws with the stated purpose of stopping money laundering, financing terrorism, tax evasion, identity theft, and other criminal activity.

KYC compliant crypto exchange requirements can include a selfie, a picture of the user’s driver’s license/state-issued ID/passport, social security number, home address, employment status, etc.

Exchanges enforce KYC compliance due to pressures from regulators. The failure of user’s complying has resulted in exchanges threatening to suspend their accounts or withholding their funds.

KYC is a threat to people’s right to privacy because you have to trust a third-party with sensitive information and your crypto. A hacker can come along and gain access to both.

#108
  1. The government is responsible. Their official purpose is to prevent money laundering.
  2. Personal information, bank account, address etc.
  3. The centralized exchanges.
  4. It is a sneaky way to connect transactions and addresses to people who own them.
#109
  1. Governments
  2. ID, address, phone number, proof of residency and sometimes even more
  3. the exchanges
  4. we the people can no longer manage money ourself without the government knowing who owns how much… and they can checkif we stated our cryptos in our tax files or not
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#110
  1. Who writes KYC/AML laws, and what is their “official” purpose?
    Goverment EU, USA
  2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    Personal information ID, bank account,
  3. Who is responsible for enforcing KYC compliance?
    The exchanges are forced to action on it
  4. How is KYC a threat to privacy? Who might gain access to what ?
    You link Crypto transactions to persons. So via that way their is no privacy anymore how they received the crypto. Also when an exchange is hacked all your private Information is public.
#111
  1. Govt’s and the state writ the laws governing KYC/AML laws under the pretense of avoiding illicit activities.
  2. Every bit of identifying data they can gather about you.
  3. Exchanges and brokerages that must comply.
  4. They can follow your money and link it to you.
#112

  1. financial action task force writes the kyc laws

  2. drivers licence, address, picture ID of some sort. general info about you. This is usually only a big deal to criminals.

  3. the governments where exchanges are located.

  4. what privacy? Of course the government will gain info for taxes. I strongly believe that regulation is the way to adoption. dishonest people dont deserve to be part of the evolutuion of money. the complications involved with entering the crypto sphere isnt easy, to weed out the bad apples. it will also weed out bad banks and governments too. I have no problem with kyc.

#113

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

  2. What type of information is usually collected for KYC compliance? An individuals, name, address, drivers license or other id, photo and bank info.

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

  4. How is KYC a threat to privacy? Who might get access to what? Central exchanges and the bodies that regulate them from around the world, can potentially gain access to ones private demographic and financial information and use it for malicious and fraudulent purposes.

#114
  1. Who writes KYC/AML laws, and what is their “official” purpose?
  • Financial Action Task Force (FATF) and their purpose is to prevent money laundering.
  1. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
  • A picture of their passport, a selfie, information about where they work, and where they live.
  1. Who is responsible for enforcing KYC compliance?
  • Exchanges.
  1. How is KYC a threat to privacy? Who might gain access to what ?
  • The information they ask for from users is not stored in a secure way and might potentially be gotten in bulk if a hacker was to maliciously attack the centralised servers.
#115

  • Who writes KYC/AML laws, and what is their “official” purpose?
    They are written by Financial Action Task Force (FATF) and Anti-Money Laundering Directive (AMLD5). The purpose is to increase KYC enforcement, add more control in the buying and selling of cryptocurrencies and ensure compliance.

  • What type of information is usually collected for KYC compliance? (Hint: it’s not the government). All information on your Identity Card including pictures.

  • Who is responsible for enforcing KYC compliance?
    The exchanges and other financial companies.

  • How is KYC a threat to privacy? Who might gain access to what ?
    The anonymity of the users is taken away and they may as a result keep away from the exchanges thus affecting their business. Yours assets or data can also be controlled by a third party such as the government, hackers or corrupt marketing companies.

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#116

  1. Who writes KYC/AML laws, and what is their “official” purpose?
    Goverments. official purpose: avoiding money laundering

  2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    Passport or driving liscence, adresse, selfie with your identification document

  3. Who is responsible for enforcing KYC compliance?
    Exchanges

  4. How is KYC a threat to privacy? Who might gain access to what ?
    My sensitive datas are connected to a 3, party. They can track my coins, they know how many I bought.

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#117
  1. Goverments, to have stricter control over buying and selling crypto currencies to stop illegal activities like money laundry and tax evasion.
  2. Proof of identity, addresses, accounts…
  3. Companies and banks that want to follow the law in that jurisdiction.
  4. Future consumtion can potentially be stopped by actors that have other interests than you.
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#118

1. Who writes KYC/AML laws, and what is their “official” purpose?
They are written by Governments and State agencies. Their main purpose is to prevent money laundering.

2. What type of information is usually collected for KYC compliance?
Social security number or tax ID number, verification of address, official identification to verify your identity.

3. Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)
The exchanges are responsible in order to remain compliant.

4. How is KYC a threat to privacy? Who might get access to what ?
It attaches a real world identity to your Crypto activity.

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#119
  1. Who writes KYC/AML laws, and what is their “official” purpose?
  • An international organization called Financial Action Task Force. As I understand, this is like a blueprint of how governments of different countries should write their laws, and then it is these governments that write and enforce the laws (or rather impose them on exchanges).
  • The “official” purpose is to combat crime and terrorism, as well as money laundering.
  • The main goal, of course, is to enable tax extortion from crypto users by tracking their income.
  1. What type of information is usually collected for KYC compliance?
  • It is basically like opening a bank account. They want your ID document, a selfie to compare with that document, and a proof of address. Apparently this is considered enough to identify the person.
  1. Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)
  • A private company, in this case, an exchange, must comply with the laws of the country they operate in. The exchange must enforce the laws of the government.
  1. How is KYC a threat to privacy? Who might get access to what ?
  • You directly give your data to a company and you trust them about handling the data. First, it is a question of security (someone might attack their database), second - they might sell the data.
  • While the Terms and Conditions usually say that the exchange won’t give your data to any third party, it is directly stated that they will provide whatever information is asked to government institutions.
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#120

The Know Your Customer laws are drafted by the Financial Action Task Force. The official reason given for these regulations are to prevent money laundering. Lol😂

Information required for a KYC form is an ID document, a selfie, proof of address and possibly more.

Exchanges that fall under regulated jurisdictions are required to enforce KYC regulations.

KYC is a threat to privacy because it allows all activity to be tracked and traced.
Also it is a breach of identity security.
It can and will allow any one accessing that information to be used for their personal gain or extortion at your expense.

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#121

See info below

  1. KYC/AML LAWS ARE TO PROTECT TRANSACTIONS AND PREVENT MONEY LAUNDERING.
  2. IDENTITY OF PERSON IS NEEDED FOR KYC
  3. 3RD PARTY COINBASE
  4. KYC IS NOT PRIVATE ITS LIKE A LISCENCE PLATE WHEN DRIVING, ITS TO GAIN ACCESS OF INFORMATION.
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