8 Best Crypto Exchanges Without KYC in 2022
Most of the crypto exchanges sitting at the top of the food chain are centralized exchanges. You can’t make transactions or trades on these crypto exchanges without KYC.
What does that mean?
It means that you have to disclose your identity in order to do anything on these platforms. And some people don’t like that.
That’s where crypto exchanges without KYC come in. These are exchanges, mostly decentralized, that allow their users to buy and sell cryptocurrency without having to disclose their identity.
Read this to learn more about the differences between centralized and decentralized exchanges.
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.
1. Bisq
Bisq is the only true crypto exchange without KYC. All other entries on this list allow trading crypto without KYC but with limitations.
Bisq is fully decentralized and doesn’t require any identity verification. It doesn’t even ask you to register in order to make a trade.
As an exchange overall, Bisq isn’t the best, sure, but it’s certainly not the worst. And if you’re willing to compromise on other factors to get total anonymity, Bisq is your answer.
2. KuCoin
KuCoin is a decentralized crypto exchange where you can trade cryptocurrency with or without completing your KYC, meaning verification is optional.
Like most entries in this list, KuCoin also has a limitation on trading amount and volume without completing your KYC. But the limitations are far less restrictive than most crypto exchanges.
However, being a crypto exchange without KYC isn’t the only selling point for KuCoin.
KuCoin offers over 370 cryptocurrencies to trade from, including their own native token (KCS). You’ll receive a 20% discount on trading fees and rewards for holding KCS.
3. Binance
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.
4. ShapeShift
Shapeshift is an anomaly.
How?
Because, unlike other crypto exchanges who went from ‘sort of’ decentralized to centralized, this exchange shapeshifted from a centralized to a decentralized company. Yes, pun intended.
Before July 2021, Shapeshift also had mandatory KYC requirements, but in a big business transition, they decided to decentralize their entire company and drop the KYC requirement.
Now, Shapeshift is also one of the crypto exchanges without KYC.
You don’t need to verify your identity to buy or sell crypto on Shapeshift anymore.
5. ByBit
ByBit used to be among those exchanges that didn’t require any KYC, but here we’re now in 2022, and ByBit is also asking for KYC.
The limitations on ByBit are far more forgiving than some of the other exchanges, though.
Other than that, ByBit is a great crypto exchange as a whole. It also offers tons of valuable trading features.
6. Changelly
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.
7. Local Monero
Local Monero is also a fully decentralized and anonymous exchange.
But why isn’t it at the top of the list then?
Because it only allows you to buy Monero coins (XMR) with fiat or cryptocurrencies like Bitcoin, Litecoin, Ethereum, etc.
So, unless you want to buy some XMR anonymously, Local Monero is of no use to you.
8. CoinEx
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.
Money Laundering
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.
Terrorist Funding
When users can trade money and crypto anonymously, it opens up the possibility of terrorist activity, especially terrorist funding. KYC prevents that.
Tax Evasions
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.
Read this to understand taxes on decentralized and anonymous exchanges. Also, read our crypto tax guide to know how crypto is taxed.
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.