Hey, I have been buying crypto (ETH and BTC) of an regulated exchange similar to (kraken, binance, coinbase) for a good number of years. Transfering it to my own cold wallets and other exchanges to diversify the risk of a single entity failing/Getting hacked. Inn the In the recent months i transfered some 180-300 k worth of crypto from my cold wallet trough the exchange where i bought my crypto and futher to another exchange.
But now several weeks later i get an email from the exchange where i bought most my crypto. Asking me for documents related to "Enhanced due diligence" and the large volume of transactions. I assume they are asking for source of funds, bank statements, tax documents, and crypto transaction history.
I currently have no crypto on this exchange, and i no longer plan to use it. I have all the documentation to document the source of funds for about 90-95% (Some is invetibility lost trough time and poor transaction history of exchanges). And this crypto is all reported on my tax statement. Problem is i really don`t want to send highly senstive finiancial documents to third party KYC company the exchange has hired do their due diligence (Exposed to potentially corrupt low wage emoplyees). Or being part of a large centralized database of KYC information just waiting to be hacked (Leading to my identify being stolen down the line) Unless i absolutely have to.
So my question is: Are there any potential consequences if i do not respond to their KYC request. Besides my account being locked/banned and being restriced from using their services?
But now several weeks later i get an email from the exchange where i bought most my crypto. Asking me for documents related to "Enhanced due diligence" and the large volume of transactions. I assume they are asking for source of funds, bank statements, tax documents, and crypto transaction history.
I currently have no crypto on this exchange, and i no longer plan to use it. I have all the documentation to document the source of funds for about 90-95% (Some is invetibility lost trough time and poor transaction history of exchanges). And this crypto is all reported on my tax statement. Problem is i really don`t want to send highly senstive finiancial documents to third party KYC company the exchange has hired do their due diligence (Exposed to potentially corrupt low wage emoplyees). Or being part of a large centralized database of KYC information just waiting to be hacked (Leading to my identify being stolen down the line) Unless i absolutely have to.
So my question is: Are there any potential consequences if i do not respond to their KYC request. Besides my account being locked/banned and being restriced from using their services?
Last edited: