It is not unusual for bitcoin investors to search for anonymous crypto exchanges. The reason is not farfetched. It is not a pleasant experience for one to provide his identity information, even if they are buying only 0.0001 BTC.
There’s a way out.
Anonymous crypto exchanges allow you to buy Bitcoin and other cryptocurrencies without KYC procedures. You will also skip the entire identification process on crypto exchanges where you have to snap yourself sometimes in front of a robot camera.
Let’s get this straight, authorities worldwide, especially the Financial Action Task Force (FATF), is asking cryptocurrency exchanges to adhere strictly to Know-Your-Customer and Anti-Money Laundering (KYC/AML) requirements.
Crypto derivative giant, BitMEX was recently indicted for failing to adhere to these guidelines. But that doesn’t change the fact that a sizeable number of investors would prefer to remain anonymous for personal reasons, including the one mentioned in the opening paragraph.
In the early days of cryptocurrencies, exchanges were allowed to operate without regulators making such stringent demands.
However, as several malefactors use cryptocurrencies to conduct their illicit activities and authorities are trying to tax crypto gains, regulators thought it wise to deploy these KYC regulations to mitigate these acts.
Although regulators are not in support of exchanges operating without KYC compliance, certain benefits come with anonymous cryptocurrency exchanges, and they include:
Some exchanges, including BitMEX mentioned earlier, have encountered situations where their databases have come under attack and tons of information stolen in a flash.
The stolen information is usually sold on the dark web in return for monetary incentives. In the event of a security breach, investors who use anonymous exchanges without KYC do not risk having their personal information in the wrong hands.
Some investors like to maintain a discreet life, trading from their homes and enjoying the profit that comes from their investment.
Users may also want to hide the proceeds of their investment from certain people, including spouses, creditors, among others, for reasons best known to them. Without KYC requirements, investors are certain that their activities on an exchange are kept private from prying eyes.
Although the speed of verifying customers has improved on some exchanges, there are still some platforms with mandatory KYC requirements that usually take weeks or months to verify the authenticity of the information provided.
Investors could have used the time spent waiting for the document verification to grow their portfolio if they had used an anonymous trading platform with no KYC.
Hong Kong-based cryptocurrency exchange, Binance is the most popular exchange where investors can buy BTC and other digital currencies without KYC. Launched by Changpeng Zhao (also known as CZ) in 2017, Binance provides a first-class trading experience for both new and existing investors, with its features ranging from maximum security to P2P trading.
Binance understands that not all investors are comfortable undertaking the KYC process, which made the exchange to enable BTC and digital currencies purchases, spot trading without users having to undergo the time-consuming KYC.
Investors who prefer not to undergo the KYC process can only withdraw up to 2BTC within 24 hours. However, accounts that are BTC verified can withdraw up to 100 BTC every 24 hours.
Another cryptocurrency exchange that does not require investors to undergo the KYC process is KuCoin. Users of this exchange can purchase BTC and other cryptocurrencies without KYC. Investors can also conduct spot trading and withdrawals of up to 2 BTC without KYC.
However, the Singapore-based exchange may decide to prompt account holders to compulsorily undergo the KYC process if there is any suspicious activity associated with the account or when users choose to withdraw more than the 2 BTC stated for non-KYC accounts.
Like with Binance, investors will be required to complete the KYC process should they choose to use the margin trade feature.
Popular crypto derivatives exchange Bybit does not require KYC before investors can use the platform. Based in Singapore, Bybit was launched in 2018 and operates under Bybit Fintech Limited, a British Virgin Islands company.
Bybit’s primary product is perpetual futures offered with up to 100:1 leverage, putting the exchange in a competitive position against famous derivative exchange BitMEX. Investors who are into leverage trading and want to remain anonymous in their trading journey can use Bybit for a hitch-free experience.
Unlike the regular cryptocurrency exchange, Changelly is an anonymous exchange specifically designed to enable investors to conveniently swap their crypto assets into their desired asset without KYC processes. Launched in 2013, Changelly supports over 150 cryptocurrencies, with a flat rate low fees for every transaction.
Users can conveniently swap their digital currencies of up to 2 BTC per day without KYC requirements. However, accounts that are flagged for suspicious activities, including owners who use VPN services to access the platform, will be required to conduct the KYC process compulsorily.
Bitfinex is an anonymous cryptocurrency exchange that allows users to deposit, withdraw, and trade cryptocurrencies without KYC. Investors can trade any asset on the platform that appeals to them without providing the sensitive information to verify their accounts.
Users can withdraw up to 10 BTC without KYC and can increase the limit after verifying their accounts. However, the exchange may choose to require KYC information at any time from accounts that raise red flags.
30 May 2023
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