T.L Golden

The Paradox of “Knowing Your Customer” (KYC) and Cryptocurrency Exchanges

Bitcoin was established on the basis of freedom from government regulation and to enhance privacy. KYC violates your privacy and is a contradiction to the stated intent of Bitcoin. Now, the entire cryptocurrency industry has become an irrational invasion of privacy and a cesspool of scams. I’ve had horrible experiences with certain exchanges that include stealing my cryptocurrency, concealing their actions, harassment, and a multitude of other unethical actions. 

What is KYC?

KYC stands for “Knowing your customer.” There is a thick line between invading your customer’s privacy and knowing what is necessary. These exchanges go to extremes.

KYC is Not The Law - It's Company Policy

Many people don’t realize this but you can go to the Bitcoin.org website along with a handful of other exchanges that don't require KYC. Forcing you to take facial recognition photos via webcam, drivers license, social security number, address, along with waiving your right to privacy is communistic in nature and unnecessary. Company policy is not the law. Sharing your social security number online is a security risk. Banks do not require the information that these cryptocurrency exchanges require. After my experiences and observations, many coins seem to be nothing more than ponzi schemes with the intent to defraud investors, while others have a valid purpose. Why do we need so many coins? 

Proceed With Caution When Signing Up For Cryptocurrency Exchanges

Corporations with ill intent took advantage of the cryptocurrency market and decided to use it as an opportunity to exploit people and invade their privacy through founding exchanges. Cryptocurrency is backed by nothing of value. But, you do have choices and it’s a matter of how you go about buying and keeping your cryptocurrency. You aren’t even required to have a social security number. The social security number was never intended to be used for identification and it was and still is an option. This makes for an entirely separate article.

I love the idea of Bitcoin and certain private currency, but do we not already have that option by just saving up our money in a private space? This is especially true regarding precious metals like silver and gold. I have lost so much money in the cryptocurrency market due to scams by the exchanges that it is downright embarrassing. I just wish it was backed by valuable metal or something of substance.  After all, we’ve been using debt notes (dollars) for over 200 years which have no true value. The big bankers run the show and we’re in debt to them indefinitely unless enough people join together and demand change. The power structure and invasion of privacy we are seeing today is partially our own fault. People are complacent. Until the situation becomes very uncomfortable, I doubt anything will be done. 

Paid Reviews

Last but certainly not least, I would advise you to research ratings on review websites that are not being paid to boost ratings for exchanges. I prefer Trust Pilot.

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TL Golden
TL Golden

I have been a freelance writer since 2010. My work has been published on Problogger, along with various other work at home websites. My specialty has also been web design and SEO. I've recently developed an interest in cryptocurrency.

An Honest Look at Cryptocurrency
An Honest Look at Cryptocurrency

I was drawn to cryptocurrency several years ago and had mixed opinions about it. For example, our money is supposed to be backed by precious metals but if you study history, you know the dollar is nothing more than a debt note. So, I've pondered on the question, "What, of substance, is cryptocurrency backed by?" I write about the positive and negative aspects of cryptocurrency.

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