Opposite Heads Of A Coin: Bitcoin Vs.KYC
Bitcoin and other cryptocurrencies seem not to get along with the policies of ‘KYC.’ Though both have good and balanced reasons to dislike each other, is there really an end to this ongoing argument?
What KYC stands for and its purpose:
KYC, otherwise known as ‘Know your customer’ is a process put in place to ensure that the banks’ services are not misused. It mainly involves obtaining information such as details about the identity and address along with their original proofs of the customers. Due to recent malicious activities, the government made it compulsory for every bank to introduce the ‘KYC’ policy. And every person that uses the bank should also abide by it. The main objective of KYC is to prevent banks from being used, especially from money laundering criminals. This also enables them to know their customers well, so they can suggest or prevent any actions that may lead to a loss, for that said customer.
The contrast between both
Bitcoin is the epitome of freedom. It refuses to be chained down to the rules and regulations of institutional power. The blockchain ensures safe, unalterable transactions to occur without the need for third parties (i.e., banks or the involvement of government in any way). Furthermore, users are not asked for identity verification. Though the footprints laid are permanent, your records stored in it contain very less personal information.
This provides users with a sense of euphoria as they can carry out transactions with no fear of being punished. This is mainly what draws people to the world of cryptocurrency. In cases where people are denied funds by banks due to lack of identity, proofs prove to be threatening, especially if the individual is in an emergency. But not everything is smiles and rainbows. Anonymity as a dark side too. If not looked after, they may open doors for dangerous scams such as ransomware. Black money may bloom and transactions for countless illegal deals may take place; even entire countries can take this to their advantage and threaten the world.
This never-ending riddle of the advantages of anonymity and the idea of personal freedom and the dreadful criminal consequences of it haunts the very core of Bitcoin. For the sake of law and order to run smoothly, it looks like the world of cryptocurrency will have to make some sacrifices…or rather, clever modifications.
Bitcoin merchants are now using an application called Bisq der Seite. It allows users to ‘buy and sell cryptocurrencies in exchange for national currencies. It claims to be completely decentralized; thus, users don’t have to submit proofs for identity verification. The users are required to download bisq before buying and selling cryptocurrency. It is supported on Windows, Mac, and Linux. The most liked and common technique of buying bitcoins is through Revoult. Many people chose this virtual method of banking because of how fast and easy it is to use. However, though everything might work well initially, after a long period of use, Revoult starts to show its disadvantages.
However, as of last year, Bisq issued a statement; ‘Cost strategies based mostly on conventional finance techniques are going to require KYC to some degree.’ However, Revoult isn’t sure about this. Some customers have repeatedly complained that after frequent transactions on Bisq, revoult has cancelled their accounts. Thus, it is important to note that Revoult isn’t completely anonymous. The Local.Bitcoin.com allows nameless transactions to take place without the requirement of personal data. But no one is sure about how long this will last. Bitcoin is constantly trying to find ways to escape KYC, the future, however, remains uncertain.