Cryptocurrency exchange and money laundering: new poloniex accounts exempted from KYC
Cryptocurrency exchange and money laundering: new poloniex accounts exempted from KYC

By Roberto D. | CryptoFarm | 25 Dec 2019


The news, in itself, is nothing epochal, but it is a sign of the fact that probably something is destined to change on the exchange market; let's go with order, according to an announcement published last December 19 the well-known exchange of cryptocurrencies poloniex (which circle is preparing to sell to an Asian consortium) will launch a new type of account that will allow users to withdraw up to 10 thousand dollars a day without the the need to undergo the identification process envisaged by the KYC regulation, i.e. the anti-money laundering regulations. Poloniex says he wanted to listen to user feedback and, not without a bit of flattery, apologizes for taking so long; from this moment on, therefore, new poloniex sondi users will be able to register on the platform without sharing their data, simply by entering an email address and choosing their password which, however, will allow them to have complete operations on the platform, even if they are excluded from leveraged trading and cannot deposit or withdraw FIAT currency. In a certain sense it is a return to the past, after all many users limit themselves to accumulating bitcoins and keep smartly away from leveraged trading, consequently it is not so problematic to exclude them from the fulfillments foreseen by the KYC. It remains to be understood how the exchange will manage the new European anti-money laundering legislation which will come into force from next January and which has already led to the closure of several companies in the sector, platforms that do not even offer trading services but that deal with anything else; in any case it is not yet known when this type of opportunity will start and for now we are still in the announcements.

All this can only open up a reflection on the fact that centralized cryptocurrency exchanges are currently facing a particularly delicate phase, caught in the middle of a vice that sees governments on the one hand and users on the other; exchange platforms, in other words, must comply with anti-money laundering legislation if they want to continue operating legally, but they must also find ways to guarantee anonymous trading to users if they want to avoid the risk of mass migration towards decentralized platforms. Reconciling these two needs seemed decidedly impossible, yet according to what Poloniex announced, the solution appears to be simple; on the other hand to complicate things there is the short-sightedness of the institutions that do not realize that if they want to have a minimum of control on the market they must necessarily keep centralized exchanges alive, otherwise the DEX would take over and at that point , reads or does not read, it would no longer be possible to control the users' operations. The institutions must therefore agree to cede and grant something to privacy, if instead, as it seems, they will stubbornly equate the exchanges of cryptocurrencies with real brokers, with all that follows in terms of compliance, they will inevitably end up giving themselves hoe on the feet.


Roberto D.
Roberto D.

Born in Italy, I live in Italy, passionate about cryptocurrencies since I discovered ethereum in 2015


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