KYC Laws - Reading Assignment

Privacy Coins - Ultimate Course
#41
  1. Governments/States
  2. All your personal data, IBAN included
  3. Exchanges
  4. It can track and interpret all the tx you do.
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#42
  1. Who writes KYC/AML laws, and what is their purpose?

Governments dictate these laws in order to be able to track and verify who owns and spends currency.

  1. What type of information is usually collected for KYC compliance?

A mug shot, photo of passport, work and address information.

  1. Who is responsible for enforcing KYC compliance?

Exchanges.

  1. Explain how KYC is a threat to privacy.

KYC removes anonymity from cryptocurrency transactions by tying an individual to any transaction conducted on the exchange.

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#43

  1. Who writes KYC/AML laws, and what is their purpose?
    Governments write the laws to fight money laundry

  2. What type of information is usually collected for KYC compliance?
    Personal information, bank account, photo, address and some more

  3. Who is responsible for enforcing KYC compliance?
    Exchanges, investment firms, tax advisors, accountants --> every company, which moves or trades with customers money.

  4. Explain how KYC is a threat to privacy.
    If an exchange got hacked, the hacker would have all my private information because it is all stored central on the exchange server.

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#44
1. Who writes KYC/AML laws, and what is their purpose?

The Financial Action Task Force (FATF) is an international organization aimed at combating financial crimes like money laundering and terrorist financing. It makes recommendations that are implemented by member governments (most G20 countries are members).

2. What type of information is usually collected for KYC compliance?

Picture of Passport or driver’s license, selfie, address, phone number, email, and possibly employment status.

3. Who is responsible for enforcing KYC compliance?

Those businesses who are deemed “obliged entities” or “money transmitters” must collect KYC/AML info and report suspicious activity.

4. Explain how KYC is a threat to privacy.

It’s no surprise organizations that custody user funds are being subject to financial regulations. The real threat is the security risk of that data existing in a centralized place vulnerable to attack. When an exchange is hacked the private data of ALL it’s customers could be leaked.

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#45
  1. Governments and financial institutions, particularly the Financial Action Task Force (FATF)
  2. Residence, employment, bank account information, identification (usually with picture).
  3. Individual financial institutions, investment firms, as well as tax advisors, accountants, notaries, and lawyers who transfer or receive payments equivalent to €10,000 and more.
  4. All information regarding your financial transactions are monitored and tied to your identity, which can lead to control of how you use your personal finances.
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#46

  1. Governments write KYC/AML laws and the purpose of it is to have stricter controls on buying and selling cryptocurrencies.

  2. The information usually collected for KYC is a picture of an ID/Passport, a selfie, and information about where they work and live.

  3. The exchanges are responsible for enforcing KYC compliance.

  4. KYC is a threat to privacy because they can track when you buy or sell cryptocurrency, so it removes the anonymity because you can then track where that cryptocurrency goes.

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#47
  1. The Financial Action Task Force (FATF) writes the KYC and AML laws. They are put in place to prevent bad actors from transferring value. Know Your Customer invades the users privacy by forcing them to give out personal identification about them self to a third party. Anti-Money Laundering laws are to prevent drug money being laundered into the economy. This forces the exchanges to monitor all user’s activity and give the KYC information to the government if they deem any transactions risky.
  2. KYC compliance includes to collection of the following in formation: ID card verification, face verification, document verification such as utility bills as proof of address, and biometric verification.
  3. Exchanges, and Banks are responsible for enforcing KYC compliance.
  4. KYC is a treat to privacy because if any of the Banks or Exchanges get hacked or the are malicious and sell it, then your identity is compromised. Identity theft is a big deal.
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#48
  1. KYC/AML laws are written by regulators that work under Governments or Governmental Agencies;
  2. Pretty much everything: Name, address, passport (ID) information, pictures, work
  3. Centralised exchanges (Binance; Kraken; Coinbase and so on)
  4. If regulators know how much fiat you put into an exchange and are able to track when and how you spend your cryptos afterward, they know pretty much everything about your financial and behavioural patterns. This is already happening in the banking industry.
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#49
  1. Who writes KYC/AML laws, and what is their purpose?
    EU. To trake over the control and benefit in Crypto Space.
  2. What type of information is usually collected for KYC compliance?
    picture of their passport, a selfie, information about where they work, where they live
  3. Who is responsible for enforcing KYC compliance?
    AML Department
  4. Explain how KYC is a threat to privacy.
    The so-called authority will never save the personal info in a safe way.
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#50

  1. KYC laws are written by governments and they are written to have clear identity of users and avoid frauds.

  2. Passport , bank account , a lot of sensitive personal informations.

  3. Centralized Exchanges

  4. Privacy in compromised a part for exposing sensitive informations to other people but they can use those by enforcing centralized rules and control you.

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#51
  1. Law makers in government. Supposedly against money laundering and counterterrorism. Also for tax purposes of course.
  2. Identity information details and government issued ID
  3. Government agencies assigned with this task.
  4. Because you have identified yourself in relation to a transaction and ultimately an on chain transaction, ANYONE who has access to the KYC database can deanonymize the wallet address and potentially more addresses that are going to be associated with it. The more KYC data points available, the easier that becomes and less privacy as a consequence.
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#52

  1. The FATF, the Financial Action Task Force, an inter-governmental regulatory agency writes KYC/AML laws. Their purpose is to prevent financing of crimes such as terrorism, human trafficking, and organized crime.

  2. Passport, Selfie, proof of address, drivers license, etc.

  3. Pressure to follow KYC/AML is put on exchanges, financial institutions, accountants, and anyone else who falls under the laws of participating governments. The individuals and entities are under the threat of for example being fined or put out of business by their governments if they do not follow the regulations.

  4. The information collected can be misused by rogue employees or leaked in a hack. And from the moment when one purchases crypto from a KYC/AML exchange, the funds can then be further tracked on the blockchain. Governments can use the initial connection to the exchange to track ones ones identity which will be attached to future transactions that one may wish to keep private.

#53

  1. Who writes KYC/AML laws, and what is their purpose?
    Know Your Customer (KYC) is written by the Financial Action Task Force (FATF) and the EU’s Fifth Anti-Money Laundering Directive (AMLD5). the purpose is stricter controls on buying and selling cryptocurrency, and increased compliance.

  2. What type of information is usually collected for KYC compliance?
    a picture of their passport, a selfie, information about where they work, where they live, and all other types of data

  3. Who is responsible for enforcing KYC compliance?
    The exchanges

  4. Explain how KYC is a threat to privacy.
    expose personal private information and can trace people’s crypto assets and transaction

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#54
  • The Financial Action Task Force FATF. Their purpose is to control who buys or sells bitcoin. No privacy!!
  • Picture, ID, Address, sometimes even type of work you do…etc…
  • Anyone that provides a financial service as a bank, lawyers, investment firms…etc
  • KYC kills the whole purpose of privacy, as every transaction made in an exchange with such a policy can be directly and easily attribute to a face, name & address.
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#55

  1. Governments and state agencies and their purpose is to prevent money laundering.

  2. Personal data

3 Coin exchanges

  1. Crypto buyers identities can be compromised and anyone can steal your information
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#56
  1. The Financial Action Task Force (FATF) to prevent money laundering.
  2. Personal information, such as passport, selfie, home address, job, etc.
  3. The exchanges.
  4. Having all your personal information, they can keep track of all your money movements, how many you have, who you give the money to, etc. This completely destroys economic privacy.
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#57

  1. KYC/AML laws are written by different anti money laundering regulators around the world. Examples are: FATF (globally) FINTRAC (Canada), OCC (USA), FCA (UK), AMF (France), BaFin (Germany), FIC (South Africa), EBA (Europe), FSFM (Russia), CBRC (China), FSA (Japan), HKMA (Hongkong), MAS (Singapore), AUSTRAC (Australia). The purpose is to detect and report suspicious activities such as money laundering, terrorist financing, fraud, market manipulation, tax evasion.

  2. A typical KYC process consists of personal information (name, age, address, sometime where you work etc.). Furthermore, a picture of something which proof your address and identity (e. g. passport, national ID…), a selfie (with and without passport etc.) and an address proof (e. g. bank statement, invoice …)

  3. Every financial institution or financial business (FIAT, crypto doesn´t matter). As mentioned before national agencies (BaFin etc.) enforces(supervises the financial institutions/ business to do it.

  4. If a financial institution/business (doesn´t matter if crypto or not) get hacked, the hacker have access to the whole identity of a person and everything they need in order to use e. g. exchanges and do money laundering with the stolen identity. Furthermore, with KYC there is always a centralized party who can deny you the access to the financial market. Just imagine you say something against the government in social media. Technically with KYC/AML it is possible to deny you access to financial institutions and exclude you from them. In addition, the government can check everythin what you are doing with your money.

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#58

Q1: People in power who are under threat of the coming wave of decentralization. The purpose is an attempt to control the market.

Q2: Any kind of personal info that would help them ID you.

Q3: The exchanges

Q4: It basically makes the whole crypto currency model obsolete by removing privacy and anonymity, the two biggest pillars of crypto IMO.

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#59

1 - Who writes KYC/AML laws, and what is their purpose?
Financial Action Task Force (FATF) writes and amends the new global standards for crypto assets. Its purpose is to apply more stringent controls on the purchasing and liquidation of cryptos. This ruling forces all bodies in the cryptocurrency business to acts as all financial institutions by obligating them to perform customer due diligence and submit suspicious activity reports.

2 - What type of information is usually collected for KYC compliance?

Passport
Selfie picture
Place of emplyment: salary(not sure)
Address
Bank account

3 - Who is responsible for enforcing KYC compliance?

Crypto exchanges will be forced to enforce mandates onto their client, by local governments and financial regulators.

4 - Explain how KYC is a threat to privacy.

KYC removes individual anonymity and allows for local governments to apply tax laws. Individual purchasing history/habits may also be scrutinized.

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#60
  1. Who writes KYC/AML laws, and what is their purpose?

KYC/AML laws are written by politicians and regulators with purpose of exerting control over financial transactions

  1. What type of information is usually collected for KYC compliance?

For KYC compliance, exchanges usually collect: picture of the ID or passport, a selfie, nationality, residency address, information about work and all other types of data.

  1. Who is responsible for enforcing KYC compliance?

Crypto exchanges are responsible for enforcing KYC compliance. They are obliged to follow the law in every territory where they operate.

  1. Explain how KYC is a threat to privacy.

All above mentioned data can be stored in an insecure way. Any explotation of these data invades an individual’s privacy and could be seen as a form of financial harassment.

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