In the world of cryptocurrency, the way we trade and manage our digital assets is constantly evolving. However, this growth has a downside, as banks and governments feel an urgent need to regulate and impose rules such as Know Your Customer (KYC).
Inhoudsopgave
KYC and Privacy: Balancing Acts or Foes?
KYC, or “Know Your Customer,” refers to the process in which a company or financial institution verifies the identity of its customers. The goal of KYC is to prevent and detect financial crimes such as money laundering, fraud, and terrorist financing. The KYC process typically involves collecting and analyzing various forms of identification information from customers.
While this might not seem intrusive now, registering can potentially allow governments to retroactively access data related to your income, expenses, and transactions in the future. This raises concerns about privacy, especially considering the possibility of other governments doing the same. The privacy issue varies for everyone, but the question remains whether such data trails should be left behind. Some find it cumbersome for various reasons. Regardless, evading KYC is extremely challenging, as even major exchanges like ByBit have been required to enforce it since May 8, 2023.
Why KYC?
- Customer Identification: When creating an account or using financial services, customers are expected to provide identification information such as name, address, date of birth, nationality, and other relevant details.
- Document Verification: Customers are asked to provide supporting documents for the provided information, such as identity documents like passports, driver’s licenses, or identity cards, as well as proof of address, like a recent utility bill.
- Screening Against Sanctions Lists: The provided information is often screened against international sanctions lists to check if the customer is not involved in criminal activities or on a national or international sanctions list.
- Risk Assessment: Financial institutions conduct a risk assessment based on the provided information and the intended use of services. Customers with higher risk, such as those with significant transactions or certain business activities, may undergo additional checks.
- Periodic Data Updates: KYC is not a one-time process. Financial institutions need to regularly update and reevaluate customer data to ensure it remains current and matches the customer’s actual activities.
Trading on MEXC without KYC:
MEXC offers trading without the need for KYC procedures. This means users can quickly and hassle-free buy, sell, and trade 1400 types of cryptocurrencies. The platform has attracted the attention of traders who value privacy and speed in executing transactions.
- Email-based Account Registration: When signing up on MEXC, you may have the option to create an account with just your email address, minimizing the amount of personal information you need to provide to the platform.
- Limitations for Unverified Accounts: Unverified accounts may have limited functionalities or withdrawal limits. On MEXC, this includes withdrawals up to 20 BTC per day. Verification may be required to lift certain limits and fully utilize all features on the platform.
- Start Trading: Once your account is created, you can possibly start trading on the platform immediately. This may include buying and selling cryptocurrencies, depending on the available trading pairs. Without KYC, this often involves trading between different cryptocurrencies and not futures.
- Security Measures: While KYC verification is not required when creating an account, it is advisable to take additional security measures, such as setting up two-factor authentication (2FA), to ensure the security of your account.
- Compliance with Regional Regulations: It is crucial to be aware of regional legislation regarding cryptocurrency trading. Some regions may have specific requirements for identity verification, even on platforms that allow trading without KYC.
Advantages of Trading without KYC on MEXC:
- Privacy Protection: Avoiding KYC procedures provides traders with an increased level of privacy. In a time when data security is a growing concern, many crypto enthusiasts appreciate the ability to trade without sharing detailed personal information.
- Fast Transactions: Trading without KYC often means faster transactions. KYC verifications can typically take some time, especially with a high volume of requests. Traders actively responding to market movements can benefit from the speed of trading without KYC.
- Accessibility for Everyone: KYC procedures can be a barrier for people who, for various reasons, do not want to share detailed personal information. Trading without KYC makes the market more accessible to a broader range of individuals worldwide.
- Easier Onboarding: For new traders, going through KYC processes can be daunting and lead to delays in entering the market. Platforms that do not require KYC make it easier for newcomers to get started quickly.
- Lower Fees and Costs: KYC procedures are often cumbersome and expensive, resulting in higher costs.
Crypto Payment Card Mooguul:
Besides trading, there is a growing need to spend cryptocurrencies in daily life. For the MEXC Mastercard, unfortunately, full verification with a passport is required.
However, an alternative solution is available: the Mooguul Crypto Payment Card, allowing users to spend their digital assets soon, whether it’s for online shopping, traveling, or other activities.
Benefits of Spending Crypto with Mooguul:
- Diverse Spending Options: Mooguul enables users to spend cryptocurrencies on a wide range of products and services. From online shopping to travel and entertainment, Mooguul empowers users to utilize their digital assets in diverse ways.
- User-Friendly: The platform is designed for ease of use, enabling even beginners in the crypto world to effortlessly spend their digital assets. This contributes to the overall adoption of cryptocurrencies for daily transactions.
- Rewards and Incentives: Mooguul can provide rewards and incentives for users choosing to spend their crypto assets through the platform. This can range from discounts to exclusive offers, increasing motivation to actively use cryptocurrencies.
- Secure Transactions: The platform likely emphasizes security and safety in facilitating transactions. This is crucial to gain user trust and ensure that crypto spending is a secure and reliable experience.
- International Accessibility: Mooguul can serve an international user base, allowing people worldwide to use cryptocurrencies for their daily expenses. This contributes to the global acceptance of digital assets.
Using MEXC and Mooguul Together:
You can deposit, earn interest*, and trade crypto on MEXC and send crypto (e.g., USDT) from there to your Mooguul account, allowing you to use your Crypto payment card. This way, you can complete almost all transactions without KYC-like procedures. Of course, you must already have crypto to send to MEXC as a starting point or purchase it somewhere without KYC, or else you will still leave a data trail. This is quite challenging, but your options include:
- Exchanging cash for crypto, although it is more challenging, and you need to know who you are dealing with. Local Bitcoin used to be a way to search and check references.
- Earning crypto from work-related activities. Invoicing in crypto is possible even if it’s under an alias.
- Buying through a No KYC broker.
*Note: Always store crypto to some extent on a non-KYC exchange. It is never guaranteed if something happens to the exchange. As the famous saying in Crypto goes, “Not Your Keys, Not Your Coins.”
Uncover the details of the first cryptocurrency designed with mathematical foundations.
Interview with Mooguul Co-Founder Arash:
Finally, we wouldn’t be Crypto-gids/BitcoInsiders if we didn’t go into the studio with Mooguul Co-Founder Arash. In this interview, Arash shares his background and why this crypto payment card is essential for the crypto community. We are, in any case, extremely excited about the arrival of this solution for easy worldwide payments in every place where Mastercard is accepted.
