3 days ago, the popular crypto exchange Binance announced that all new users who sign up on their site will have to undergo mandatory KYC procedures, which include uploading government issued ID, a selfie, address and date of birth. Existing users have until October 19th to do the verification. It's not clear what will happen to the accounts of those users who do not complete the verification in time, but it's safe to assume they will be locked.
I only happened across this news by chance, as unfortunately Binance did not proactively e-mail users or have any sort of visible notification on their app or website. You have to click into the blog section to see the update. For those interested, you can read the full announcement here:
https://www.binance.com/en/support/announcement/51bf294e26324211a4731ca998e110ca
Many users are rightfully disappointed by this turn of events. Part of the spirit and appeal of crypto is the decentralized nature of it. Requiring users to undergo KYC verification makes Binance no different than a bank or a credit card company, the very things crypto was invented to be an alternative to. It also alienates users who don't have access to a government ID, or use their services to escape government corruption. I hope this blog post serves a notification to those Binance users who are affected by this and were unaware of the change.
With that in mind, let's look at some of the top exchanges that provide a viable alternative to Binance and do not require KYC for most of their customers.
KuCoin is a well known, long established exchange based in Singapore and operating since 2017. They are NOT regulated, and do NOT support fiat deposits or withdrawals. The main advantage of this exchange is the fact that they offer approximately 200 coins, so it may be useful for those who like to seek out lower market cap gems. Aside from spot, you also have margin, futures, leveraged tokens, trading bots, lending and pool staking services available to you. The standard trading fee is 0.1%, which isn't terrible, but not exactly competitive with other major centralized exchanges. Keep in mind that KuCoin DOES require verification if you intend to trade large sums, or if you're ever unfortunate enough to be locked out of your account. Personally I do not use this exchange as they've had a nasty habit of de-listing coins I've owned without proper warning, and without giving the opportunity to withdraw. Note: KuCoin is NOT available to U.S. customers.
This is currently my favorite and most recommended exchange. They were founded in 2019 and currently based in Hong Kong, they are registered in Antigua and Barbuda, but NOT regulated for U.S. customers. U.S. customers CAN use ftx.us, which is limited in it's offerings of markets and features. In general, the exchange has the best variety of services aimed at advanced traders, including leveraged tokens, options, futures, MOVE smart contracts, prediction markets and even tokenized stocks. The trading fees on FTX are some of the lowest in the industry, ranging from 0.02% to 0.00% for maker and 0.07% to 0.04% for taker. To reduce your fees by 5%, you can use my referral by registering from this link. FTX does have basic KYC requirements for non institutional traders, but these are in fact much simpler, and require much less personal information than most other exchanges.
Pionex is all about trading bots. This exchange is based in Singapore, and was founded in 2019. It is regulated in both U.S. and Singapore and is available to U.S. customers. The main draw of this exchange is that it offers 12 free trading bots, as well as multiple tutorials and options for setting up the bots. If you are a fan of automating your trading, and understand how trading bots work, this may be a good exchange for you. It's also more suitable for bot trading beginners, as there are specific beginner friendly options included. Further, the standard fees of 0.05% are very attractive, especially as most bots are very high volume traders. At this moment Pionex does not accept fiat deposits or withdrawals, but it also does not require any KYC verification. Pionex relies on liquidity aggregated from Binance and Huobi, and supports roughly 200 coins for trading, although only 40 are available for deposits.
Bybit was established in 2018 and is currently based in Singapore and registered in the British Virgin Islands. It is however NOT regulated and NOT available to U.S. customers. It is primarily focused on futures and leverage trading with many advanced options that will appeal to seasoned traders. The trading fees are a very competitive 0.025% for maker and 0.075% for taker. Funds can be deposited through crypto, but also through credit card, wire and other options. It also has a very well designed and intuitive trading view, the only downside is a relative lack of trading pairs compared to other exchanges. A unique feature of Bybit is a very active referral program and rewards center, which offer multiple bonuses just for trading as little as $10. Please feel free to use the following referral link if you'd like to try this exchange. Bybit does not require KYC verification if you withdraw under 2BTC/day.
The above 4 are in my opinion the most viable alternatives to Binance at the moment. What is your favorite exchange and why? I'd love to hear your recommendations.
Thank you for reading, and remember to enjoy the good things in life!
