But before jumping straight to the list of the 8 best crypto exchanges without KYC, let’s try to understand why people don’t like the idea of disclosing their identity to crypto exchanges.
Why Do People Look for Crypto Exchanges Without KYC?
There’s no one-size-fits-all answer to this question. Different people have different reasons.
One reason could be that you’re involved in criminal activities, and that’s why you don’t want your identity disclosed. But that’s an easy cop out.
First of all, not everyone is a criminal.
Second, just because someone doesn’t want to disclose their identity doesn’t automatically mean or imply that they are a criminal, which brings us to the second possible reason – privacy.
There’s a whole spectrum of people who are concerned about their privacy. In this spectrum, there are people with rational concern over their privacy. And then there are conspiracy theorists who believe that the lizard people are controlling the world leaders and that everyone’s being spied on.
In short, people want to protect their privacy.
Lastly, two of the fundamental ideas behind cryptocurrency and blockchain technology were decentralization and anonymity. Some people believe that mandating KYC goes against that very idea. Hence, the protest against it.
It’s ironic that at the start of this article, we said that most centralized exchanges require you to complete KYC, yet Binance is on this list.
There’s no need to introduce Binance again. It has the reputation of one of the most popular exchanges in the world.
Binance also allows trading crypto without KYC, but the limitations are a bit too harsh. So, if you’re willing to compromise for your privacy, go for it, but most people don’t prefer it. They either complete their KYC or move to other platforms.
Earlier, Changelly used to be a fully anonymous crypto exchange that didn’t even verify your email address.
But a lot has changed since then.
Like many, Changelly has also been made to implement a KYC procedure. But it’s not compulsory. You can still buy and sell crypto with some limitations on withdrawals and volume.
Other than that, Changelly is a decent crypto exchange with decent features. Since this is not a list of the best crypto exchanges overall, we’re only looking at these exchanges from the lens of anonymity. Check out the list of the 5 best crypto exchanges in the US for otherwise.
CoinEx is another great crypto exchange without KYC with its own native coin, CET. And just like KuCoin, using CET will get you discounts on commission fees.
The limitations are reasonable and great for crypto beginners and HODLers. So, as long as you’re not trading in thousands of dollars every day, you’d be fine.
Why KYC Could be a Good Thing? – Limitations of Crypto Exchanges Without KYC
Despite what you may think after reading this article, KYC isn’t all that bad, and the government doesn’t necessarily want your transaction history to plot something against you.
Here are a few reasons why KYC could be a good thing and where crypto exchanges without KYC fall short.
You may have heard this a million times by those anti-crypto people who don’t fully understand blockchain technology. It’s an argument they pull up time and time again.
However, there’s some truth to it. Money laundering is indeed a real thing. Sure, it happens outside of the crypto world too, but that doesn’t mean we ignore it altogether.
Verifying user identity allows the government to prevent or crackdown on money laundering.
When users can trade money and crypto anonymously, it opens up the possibility of terrorist activity, especially terrorist funding. KYC prevents that.
Last but not least, one of the reasons many people are using crypto exchanges without KYC is to avoid taxes. First of all, tax evasion is a serious criminal offense. Second, you still can’t avoid taxes even if you use an anonymous crypto exchange.
Lastly, if you need help collecting all your trade history and calculating taxes, use Bitcoin.Tax
Bitcoin.Tax is a crypto tax software that collects all your trade history from all the different exchanges and wallets you’ve been using. Not only that, but it also calculates capital gains taxes, incomes taxes and any other taxes. Plus, it helps prepare and file your tax report.