KYC loses its function once the coins have left the exchange?

Revoltec · Nov 4, 2024

I read a post where someone claimed that KYC is pointless once the coins leave the centralized exchange. The wallet you withdraw to can be assumed to belong to you but that cannot be proven because your identity is not tied to it as long as you hide your IP address.

Does this mean that KYC loses its purpose as long as you in the future, after withdrawing from an exchange with KYC, only use exchanges that do not require KYC or sell for cash? I do know that analytic companies run their analysis of the blockchain but even here it cannot be proven how long you had custody over your coins.

I do not know how this would be interpreted in court. Maybe the probability of you being the owner of the wallet is so high that the facts above are completely neglected?

Sols · Nov 4, 2024

If you claim the wallet isn't yours, it becomes pretty esoteric, and very much based on other circumstances.

Same way as you can be (or be determined to be) the UBO of a company without owning a single share, you can probably be deemed to be the effective controller or beneficiary of a wallet even if you claim you don't have the keys to it.

KYC on the exchange creates a relationship between you and the wallet. But it depends on the surrounding circumstances whether and to what degree that matters.

JohnnyDoe · Nov 4, 2024

In other words, like all financial rules and regulations, KYC is just an excuse to f…k you (that is, steal your property).

jafo · Nov 4, 2024

JohnnyDoe said:
In other words, like all financial rules and regulations, KYC is just an excuse to f…k you (that is, steal your property).

#Bingoooooooooooooooooooooo

Just a reminder ...

PS. The speaker is NOT me!

diro · Nov 5, 2024

Revoltec said:
I do not know how this would be interpreted in court. Maybe the probability of you being the owner of the wallet is so high that the facts above are completely neglected?

It really depends on how you've used your wallet. If you've protected your real IP and don't have transactions that can be linked to you, I would think it's impossible for anyone to claim that a given wallet belongs to you.

jafo · Nov 5, 2024

Revoltec said:
I do not know how this would be interpreted in court.

If it gets to this point, the target is a DEAD man! The Cartels of Mexico, Russia, Colombia, and the Yakuza combined are orders of magnitude more sympathetic and less cruel to the target than the gang members under the ruse of government will EVER be.

There are NO mutes in prison! EVER!

IYKYK!

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KYC loses its function once the coins have left the exchange?

Revoltec

Sols

JohnnyDoe

Schrödinger's guy

jafo

diro

Offshore Agent

jafo

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