KYC Laws - Reading Assignment

Privacy Coins - Ultimate Course
#142

Hi, I am having troubles to go into Thortspace crypto privacy, it said the invitation has expired, is any way to sort it out ? Many thanks

By the way, I am not sure if I have to post it here, sorry if its not the place :relaxed:

#143

Where did you get the link? I don’t remember this being in the course.

#144

  1. Who writes KYC/AML laws, and what is their “official” purpose?
    by governament institution against money lounder

  2. What type of information is usually collected for KYC compliance?
    picture of their passport, a selfie, information about where they work, where they live

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

  4. How is KYC a threat to privacy? Who might get access to what ?
    governaments and other institution could get the info from exchanges, to know who and how much hold crypto

1 Like
#145

It appears to me in the links above

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image1125×2436 600 KB

#146

Ahh, these are links posted in the thread by other people. Can’t really help you with those. Do you need an invite for throtspace?

#147

KYC Laws

  • Who writes KYC/AML laws, and what is their “official” purpose?
    • The Financial Action Task Force (FATF).
    • They enforce stricter controls on buying and selling cryptocurrency, and increase compliance.
  • What type of information is usually collected for KYC compliance?
    • Photo id, address, full name, DoB.
  • Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)
    • Exchanges, such as Binance.
  • How is KYC a threat to privacy? Who might get access to what?
    • KYC forces the user to identify themselves and hand over photo id, address, name, DoB, and so on. This eliminates privacy completely. These exchanges can/will be forced to hand over these identities to governments if they so choose to inspect a public address.
2 Likes
#148

It would be nice to have an invitation for throtspace :blush:

#149

Isn’t throtspace free? Why do you need an invite? In any case you should contact @marsrvr to give you one.

2 Likes
#150

Thanks For the recommendation Alko :blush:

#151

1. The FINANCIAL ACTION TASK FORCE writes KYC / AML laws with the “official” purpose to fight against financial crime and money laundering.

2. Passport copy, date of birth, address etc.

3. Typically, the exchange designate a compliance officer to oversee the implementation of KYC and AML standards.

4. All personal data is stored on the exchanges server. In case of a hack all my data is compromised. Further, we lose the anonymity of transactions.

1 Like
#152

  1. KYC laws are written by governments and state agencies, their official purpose is to prevent money laundering and other crimes

  2. Personal information is collected for KYC compliance

  3. Exchanges are responsible for enforcing KYC

  4. KYC laws mean that any transaction can be linked to an individual hence nullifying privacy

1 Like
#153

The government and state institution.

Everything what they can get from you.

The exchanges.

The way they connect your ID to your assets.

1 Like
#154
  1. The local gangs extorting and harassing civilians, aka governments. Officially to protect us from all sorts of sinful things like drug deals, because, you know… nothing sinful ever happened while fiat is used. Impossible. In reality it is just about control. Like a lion will chase a deer, so will a government seek to increase power, no better way to exercise power and control than to control money.
  2. ID, source of funds, proof of address, etc.
  3. The exchanges, if they don’t the above mentioned gangs will shut down their business.
  4. Anybody might get access to your info, and will be able to see your UTXOs if they look hard enough.
1 Like
#155

  1. Who writes KYC/AML laws, and what is their “official” purpose?
    A) FATF ( financial action task force) and the AMLD

  2. What type of information is usually collected for KYC compliance?
    Pictures of passport. Selfie. Address’ where you live.

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

  4. How is KYC a threat to privacy? Who might get access to what ?
    A) All personal information is stored on a database. Could be hacked. Governments can request/demand the information. Identity theft could be a big concern. Having said that, this is the same information given to mainstream financial institutions.

1 Like
#156

1 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.
2 A link between a national ID, your account number, your “financial knowledge”, anticipated transactions (annual amount, from/to) and sometimes also a proof of address.
3 The financial institution.
4 My information is forwarded to (tax) authorities, or who ever is able to read the KYC files. This is an important part of the Orwellian society.

1 Like
#157
  1. Who writes KYC/AML laws, and what is their “official” purpose?
    (FATF) Fanancial Action Task Force.
  2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    Picture id,a selfie , work info,where you live etc.
  3. Who is responsible for enforcing KYC compliance?
    Exchanges.
  4. How is KYC a threat to privacy? Who might gain access to what ?
    They will track you finanlcial activity
1 Like
#158

  1. Who writes KYC/AML laws, and what is their “official” purpose?
    The FATF is the global standardsetter and publishes recommendations for effective AML/CFT prevention. National legislators, who are members of the FATF, have to adopt these recommendations.

  2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    Personal info like name, address, beneficial owner, sometimes tax number

  3. Who is responsible for enforcing KYC compliance?
    obliged entities (=middlemen), i.e. the arm of the government, e.g. financial institutions.

  4. How is KYC a threat to privacy? Who might gain access to what ?
    Once youre KYC’ed your data will be stored in a database owned by the KYC guy. He needs to review your data and monitor your transactions. The risk is, that your personal data that was the input for KYC might get leaked to sniffers etc.

1 Like
#159

Service providers (or exchanges) are the ones that are responsible to enforce KYC. :slight_smile:

#160
  1. They are written by governments or state agencies. The purpose is officially to prevent money laundering. In realty the reason is to control the crypto market.
  2. Personal data, bank account, address, etc.
  3. The exchanges
  4. It is easy to keep track of whatever cryptos you buy, where you transfer them, etc. It is a way to connect your identity with BTC addresses.
1 Like
#161
  1. Who writes KYC/AML laws, and what is their “official” purpose?
    The Financial Action Task Force (FATF)
    Their purpose is stricter controls on buying and selling cryptocurrency, and increased compliance
  2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    They request a picture of your passport, a selfie, information about where you work and where you live between others.
  3. Who is responsible for enforcing KYC compliance?
    FATF
  4. How is KYC a threat to privacy? Who might gain access to what ?
    It would end with users anonymity when trading or making transactions from exchanges or sites that are enforced with KYC.
1 Like