5 Cryptocurrency Exchanges You Can Trade in Without KYC Verification
These days, it’s taken as a given that Know Your Customer (KYC) practices must be endured to trade crypto on centralized exchanges, as stringent legislation in most countries requires crypto businesses to verify the identity of individuals using their service.
However, it is not mandatory to use a KYC exchange (also referred to as “surveillance exchanges” by their critics) to trade. Several exchanges still lawfully operate in jurisdictions that do not dictate the use of KYC laws or have no official headquarters, putting them in a grey area in terms of legal requirements.
Are you interested in buying crypto without the hassle of going through the KYC process repeatedly? The following guide examines five exchanges that don’t enforce KYC requirements and considers precautions you should take when using KYC-less crypto exchanges.
Changelly is among the more well-known “instant” digital currency exchanges. Since 2015, the exchange has increased by more than 1.5 million registered users around the world. Right now, the exchange serves more than 15,000 exchanges each day and has a month to month turnover of around 60,000 BTC.
With more than 90 altcoins to trade or purchase, Changelly has a significant rundown of exchanging sets to offer clients. It prides itself on quick exchanges, account security, top trade rates, and simple to utilize and natural interface. Moreover, there is no ID confirmation enlistment that you have to accomplish for utilizing their administrations.
To secure the client’s protection, Changelly does not require the making of an account to utilize its transformation administrations. This implies clients don’t have to submit individual data; they simply need a legitimate wallet address. That said, it is important to note that those purchasing crypto with a bank card may require extra confirmation before their purchase.
For individuals who stick to crypto-to-crypto changes, there isn’t any confirmation required. However, Changelly expects users to have supporting altcoins like LTC/ETH/DASH and so forth to exchange for BTC. If you possess altcoins, you can purchase BTC in seconds with no confirmation utilizing this platform.
Diversifi (Former Ethfinex)
Diversifi, rebranded from Ethfinex Trustless, is an Ethereum-based trading platform that places security, privacy, and control in the hands of the user. With the platform, users are neither required to sign up and retain full control of their funds throughout the entirety of the trading experience whilst executing trades against a highly liquid off-chain order book. The platform has no deposit or withdrawal delays, plus users don’t sacrifice custody of their tokens.
The exchange enjoys liquidity provided by Bitfinex, thus facilitating the trading of ERC20 tokens without the need to undergo KYC. Diversifi allows users to take advantage of high liquidity, low-spread trading experience without really sacrificing their control of the tokens. The platform seeks to birth a new era of digital asset trading by placing liquidity, privacy, and security in the hands of the user.
Kyber Network is an on-chain liquidity protocol that aggregates liquidity from a wide range of reserves, powering instant and securing token exchange in any decentralized application. While the platform doesn’t look like a conventional DEX, it performs a similar role by employing an on-chain liquidity protocol which enables the swapping of tokens via connecting an Ethereum interface such as Metamask.
Kyber Network is KYC-less with no order. To swap tokens, users simply select the respective asset from a dropdown menu, then set a minimal acceptance conversion rate by adjusting a slider, and then the order is fulfilled on-chain.
Kyber offers a wide range of decentralized use cases by enabling wallets, websites, and applications to integrate instant token exchange directly into the application logic.
OpenLedger is a KYC-less DEX platform built on the BitShares blockchain platform. The platform allows users to either list their coins or exchange their cryptocurrencies and supports ten languages. Users can convert their BTC or EOS paired with BitShares token to fiat-backed SmartCoins, which they can then cash out using Ripple gateway, PayPal, or CCEDK’s NanoCard in a decentralized fashion. T
he platform also supports a range of stablecoins developed by Openledger that are pegged on various national currencies such as the Chinese Yuan.
ForkDelta was created as a code fork of EtherDelta in early 2018 following EtherDelta’s recent change in ownership. The platform describes itself as “a decentralized Ethereum Token Exchange with the most ERC20 listings of any exchange.” The platform does not require users to pass a KYC verification process, nor does it hold user funds.
Will “No KYC” Exchanges Survive in a Regulated Industry?
When it comes to trading crypto anonymously, decentralized exchanges (DEXs) are the go-to option for many investors. The 5 DEXs identified above operate on-chain using smart contracts, and some don’t even require an email address to trade.
Therefore, trading on a DEX is effectively anonymous. Moreover, as decentralized exchanges are – at least in theory – protocols that operate independently of their owners, it is difficult to regulate them. But how long will decentralized exchanges be allowed to operate in this manner?
Financial sovereignty, personal freedom, and liberty are cornerstones of Bitcoin and cryptocurrency. However, the options to buy and sell digital currency anonymously are becoming more and more limited as a result of crypto having gone mainstream as an investment asset class.
For exchange operators who want to build profitable businesses, KYC will very likely become mandatory across the globe.
In most countries around the world, ID verification is required due to crypto monitoring rules put in place by financial regulators.
Yet, some decentralized exchanges based in less stringent jurisdictions still allow limited crypto trading without requiring KYC. This is good news for investors who prefer to stay anonymous, but keep in mind these exchanges seldom ever support fiat deposits. Fiat deposits and withdrawals almost always require basic or full KYC.
Indeed, most anonymous DEX platforms use a tiered system that requires every user to provide some additional information before they can deposit or withdraw large amounts of digital assets.
Here are some of the processes that crypto exchanges use:
- No KYC – users can sign up for an exchange without completing any checks. They are, however, limited to certain functionalities such as no withdrawals.
- Basic KYC – users must upload some identification documents such as an ID and a photo. They also get fixed deposit and withdrawal limits.
- Full KYC – users have to complete an entire verification before they can deposit or withdraw large sums of digital assets.
The exchanges discussed above allow users to trade crypto without completing any checks, with users required to undergo a progressively stringent confirmation process if they wish to access more trading functionalities.
To ensure your safety while on an anonymous exchange, it’s important to do your own research before signing up. Read online reviews to get a feel of what others have experienced while trading on various DEX platforms, check out the policies on each exchange, and determine the quality of its customer support.
Finally, when trading on a “no KYC” platform, don’t leave all your coins on there. Only deposit what you actively need for trading purposes and keep the rest of your portfolio in a non-custodial wallet.
Trade safe and keep your identity anonymous with one of the above exchanges that appeal to you most!