Questions about no KYC crypto exchanges

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ralphdkemp

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Jun 14, 2022
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Hi everyone! I'm really new to all this, so please forgive me if I sound clueless. I have very little experience with cryptocurrency and have only used Coinbase a bit. I'm interested in the privacy that comes with crypto platforms that don't require KYC (Know Your Customer) verification. But I have some questions that I can't seem to find answers to:
  1. Will non-KYC crypto exchanges become inaccessible to people in the USA soon?
  2. What happens to your wallet on a non-KYC crypto exchange if the exchange shuts down or becomes unavailable?
  3. If I have a wallet on a non-KYC crypto exchange, can someone send Bitcoin to that wallet?
  4. Can I transfer Bitcoin from my non-KYC wallet to my Coinbase wallet?
  5. What are the best non-KYC crypto exchanges available to US residents for buying Bitcoin?
 
If the U.S. stops its citizens from using exchanges without KYC requirements, people might turn to VPNs to access them or search for other platforms to use, though some of those are also off-limits to U.S. users.

You can send and receive crypto from any exchange, but I'm wondering: why would you move Bitcoin from a non-KYC exchange back to your Coinbase account where you've already completed KYC? Doesn't that still link your transactions to your personal information? That doesn't really offer any privacy protection.
 
If you want to transfer it to your actual bank account, wouldn't you need to move it to an exchange that requires KYC? I'm just wondering, how does someone convert Bitcoin they've collected on a non-KYC exchange into other forms of currency like cash or bank deposits?
 
Most exchanges that require KYC are centralized, meaning they have to follow the government's rules and regulations in the countries where they operate. We used to have plenty of non-KYC exchanges, but I guess many couldn't handle the governmental pressure and started implementing KYC as a condition to use their services.

On the second point, with non-KYC exchanges, you actually have control over your own private keys. The exchange gives you your private key and a wallet to store your funds on their platform. So even if they shut down, you might still be able to access your money.

As for the third and fourth points, sure thing! Whether KYC is involved or not doesn't stop anyone from sending or receiving coins. But connecting your non-KYC exchange back to a centralized exchange kind of defeats the original purpose.
 
ralphdkemp said:
If you want to transfer it to your actual bank account, wouldn't you need to move it to an exchange that requires KYC? I'm just wondering, how does someone convert Bitcoin they've collected on a non-KYC exchange into other forms of currency like cash or bank deposits?
Click to expand...
You can use certain exchanges to convert your Bitcoin into your local currency; you just need to find one that offers peer-to-peer transactions without requiring KYC. After that, you can arrange with a buyer how you'd like to receive payment in exchange for your Bitcoin.
 
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