Sirwin
Sirwin

KYC: The Hidden Enemy Of Cryptocurrencies, A Double-Edged Sword.


KYC is the acronym for Know Your Customer and is a process that helps verify the identity of customers who carry out transactions with Banks, Financial Institutions, Payment Services Companies, E-Commerce Companies, Investment Platforms (including those related to the crypto ecosystem), etc.

Its main objective is to prevent fraud, money laundering, terrorist financing, among other financial crimes. KYC is a powerful tool that helps protect us from financial crime, and although it is a simple process, it can have a significant impact on our security. However, it also has some critical implications that must be taken into account.

One of the main criticisms of KYC is that it can be a barrier to accessing financial services. The KYC process can be expensive and complex, which can make it difficult for low-income people or people who do not have access to official identification documents to open bank accounts or carry out financial transactions.

Companies that carry out this process collect personal information from their customers, such as their name, address, date of birth, and identification number. This information is used to verify that the client is who they say they are and that they are not involved in illegal activities, but it can also be used for mass surveillance. The information collected during the KYC process can be used by companies to track the activities of their customers and this can pose a threat to the privacy of users.

For many of us who use cryptocurrencies, KYC is a nightmare, not only because it endangers privacy and security, but also our freedom. When sending personal documents, such as a passport, driver's license or electricity bill, to an entity that claims to be trustworthy, what guarantees do we have that this entity is not going to use this data for malicious purposes? What happens if that entity is hacked and the information falls into the hands of criminals who can impersonate your identity, access your bank accounts, extort you, or even kidnap you?

We will never be sure what the platform is going to do with our personal data. They may use them as a business to sell your information to third parties, such as advertising companies, banks or insurance companies. Or they may hand them over to national security agencies, such as the NSA, FBI, or CIA, who can spy on your activities, track your movements, and violate your rights. KYC can become an instrument of oppression and repression for governments that want to control their citizens.

KYC is the main enemy of cryptocurrencies because it goes against their essence. Cryptocurrencies were born as an alternative to the traditional financial system, which is controlled by governments and central banks. They offer anonymity, freedom, transparency and resistance to censorship. KYC destroys all that by subjecting cryptocurrency users to the very rules and restrictions of the system they want to avoid. By revealing your identity and cryptocurrency activity, you may be a victim of political persecution, confiscation of funds, censorship, or violence.

It may also negatively affect the development and innovation of cryptocurrencies. By requiring KYC, cryptocurrency-related platforms may lose users, investors, and developers who do not want to give up their privacy and security. Which can, incidentally, slow the growth and adoption of cryptocurrencies, as well as limit their potential to transform the world.

But not everything is "personalized evil", although KYC can have many risks and disadvantages for cryptocurrency users, it must also be recognized that in some cases it may be necessary or desirable. For example, if some type of claim needs to be made, such as recovering a hacked account, requesting a refund, or reporting fraud, KYC can be a way to prove ownership and identity of funds and users. It can also be a way to comply with the legal and fiscal regulations of each country, thus avoiding possible sanctions or problems with the authorities.

However, this does not mean that KYC is the only option or the best solution. There are other ways to protect and manage cryptocurrencies without giving up privacy and security, such as using strong passwords, enabling two-factor authentication, backing up private keys, using hardware or paper wallets, or using services arbitration or mediation in case of disputes.

If I can recommend anything, it is that you avoid KYC whenever you can, look for alternatives that respect your privacy and security, such as decentralized exchanges, anonymous wallets or coin mixing services. Don't be fooled by the false promises of security and trust offered by those who require KYC. Remember that it can be the beginning of the end of your freedom.

In the end, the decision to do KYC or not depends on each user, their preferences, their needs, and their values. Each user must evaluate the pros and cons of doing KYC, taking into account the risks and opportunities involved. We must become more aware of the rights and responsibilities we assume when using cryptocurrencies, as well as the consequences that this choice can have. Cryptocurrencies are a powerful tool to change the world, but they also require responsible and ethical use.

KYC is a challenge that we must face with intelligence and judgment, it is not about simply accepting or rejecting it, but about seeking the balance between security and freedom. In an increasingly digital world, it is important to protect our identity and our data. Be careful who you let yourself be seen with!


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