Buying crypto without KYC (Know-Your-Customer) is getting more and more difficult. For years, digital asset enthusiasts have relied on popular no-KYC crypto exchanges like Kucoin and ByBit to support their anonymous trading habits. However, 2023 has had different plans, with most exchanges tightening their verification processes.
The balance between security and privacy is a delicate one. While KYC procedures are designed to protect us from money laundering, fraud, and other illegal activities, they can often feel intrusive and time-consuming.
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What is KYC Verification?
KYC, or Know Your Customer, is a standard identity verification process financial institutions use. It’s a way businesses can verify the identity of their clients and assess potential risks of illegal intentions.
The process typically involves collecting and validating personal data about a customer, such as their name, physical address, date of birth, and government-issued identification documents. Some KYC procedures also ask you to take a quick video or selfie to ensure you are who your document says you are!
Why Do Crypto Investors Avoid KYC?
On paper, KYC is a great tool that protects the crypto market from malicious actors and gives us a safer environment to buy Bitcoin (BTC) and learn about blockchain technology.
So what’s all the fuss about? Why do crypto investors work so hard to avoid KYC?
Privacy Concerns – KYC procedures require users to provide personal information and documents, which can concern those who value their privacy. Many people aren’t comfortable sharing this information with a crypto exchange, especially given the potential risk of data breaches.
Ease of Access – Completing KYC procedures can be time-consuming and require significant effort. Users who want to start trading quickly may prefer a no-KYC exchange to avoid these hurdles.
Global Accessibility – Not everyone has the same access to the personal documentation required for KYC procedures, or they may live in a country unsupported by the exchange. No KYC exchanges often have fewer restrictions, making them more accessible to users worldwide.
KYC is Anti-Crypto – Anonymity, decentralization, and self-custody are the cornerstones of the cryptocurrency movement. Know Your Customer verification is a direct clash with all of these values.
Best Crypto Exchanges With No KYC
While Non-KYC crypto exchanges are getting harder to find, a few platforms are still committed to user privacy and ease of access. These exchanges allow users to trade cryptocurrencies without the often tedious KYC procedures. Let’s take a closer look at some of the best no-KYC crypto exchanges in the space.