Direct from the desk of Dane Williams.
In my previous post, I discussed the concept of buying HBD without KYC compliance.
This topic generated a lot of discussion in the comments below and raised a common question among readers: Why do some crypto traders choose not to complete KYC?
This is a valid question, as many people view crypto as being associated with illegal activities.
Ooo crypto - Pwopa norty!
In this post, we will delve deeper into why not completing KYC is a personal choice that even law abiding individuals are free to make.
Do you trust the organisation or government with your data?
It basically comes down to whether you trust the organisation that you're giving all of your personal details to.
The idea behind KYC is that it makes it harder for scammers and money launderers.
That it's meant to protect you.
But the reality is that it doesn't actually do this and instead, opens you up to a whole raft of risks in the process.
First, you have to trust that they're not selling your data to advertisers.
Because once your info has been sold once, it's out in the wild and you’re not getting it back.
Second, you have to trust that the organisation you're giving your details to store it securely.
Countless examples of data hacks and leaks show that even the largest, most trustworthy companies don't do enough in this regard.
Third and finally, you have to trust that the organisation won't pass your details onto government/law enforcement unfairly.
You might say that you're not a criminal and that's fair enough.
This is certainly less of a concern in the west.
But having your financial assets frozen for political/cultural beliefs is a real issue in large parts of the world and again you're trusting that things out of your control won't change for you.
Ultimately, it is up to each person to weigh the potential benefits and risks and make an informed decision on whether or not to complete KYC before trading crypto.
It is also extremely important to research and be aware of the policies of different companies before using their services, as well as your legal obligations to the country in which you reside.
Ahem.
Final thoughts on not wanting to do KYC
For me personally, the three reasons outlined above make it clear why having a non-KYC option to buy a truly decentralised USD pegged asset like HBD, is extremely important for large portions of the planet.
I most certainly feel like the tech has long passed financial regulators and those trusted with building KYC and anti-money laundering legislation in many countries, including my own.
The reality is that we see these KYC rules and regulations have zero effect on the criminal activity that it was put in place to prevent.
Instead, it simply inconveniences all the way up to downwrite screws over those of us just trying to live our lives.
Best of probabilities to you.