The new site comes at a time when exchanges are keen to please regulators by implementing strict kyc policies for customers. The list varies from more private options like bisq to less anonymous options like binance. Kyc not me is a website that lists the last remaining privacy preserving bitcoin exchanges.
As the licensing of these is done a state by state level the complexity is a substantial issue for startups. They also need to comply with kyc know your customer rules. As a financial institution msbs are required to comply with bank secrecy act laws and regulations including aml anti money laundering requirements.
This prevents unlawful actors from using a country s money and sets down a paper trail for law enforcement to pore over in the event of an investigation. A fundamental cog in the world financial system which nearly every major nation follows kyc requires banks or other third parties to verify the identity of the sender and receiver involved in a transaction. Kyc know your customer laws have long plagued the crypto community.
As a result the majority of crypto exchanges now enforce kyc. This includes virtual currencies. Know your customer kyc legislation requires businesses to verify the identity of individuals using their service particularly where the transmission of money is involved.
The new measures at localbitcoins which is based in helsinki stem from finland s act on virtual currency service providers which comes into full effect in november 2019. Earlier this year localbitcoins also removed offers for in person cash trades and enforced its first batch of kyc requirements. Confirming your phone number.
This process sounds a lot scarier than it really is even though you are obligated to submit some very delicate information related to you as a person. In order to properly use a bitcoin exchange you will need to complete a know your customer kyc verification procedure.
