Currently, cryptocurrency exchanges tend to collect a lot of data about their customers. Traders often do not want to provide this information. It is only natural because digitized businesses have a history of security breaches. Still, often they have no choice but to verify their identity, as this is a necessary condition for participating in the marketplace. Traders have more choices than they think they do, though you exchange crypto.
Has the Identity Verification Always Been Necessary?
It seems like most platforms require users to provide a trove of personal data to open an account. Commonly, they require new customers to indicate banking details, names, social security numbers, etc. Some platforms even want customers to provide them with copies of their government-issued ID cards. When providing all of this information, one may wonder if it is necessary.
It is for you to decide if you want to reveal your personal information. We think it is not necessary. 200 years ago, the thought of needing a photo ID to engage in any commerce would have been unfathomable. Imagine being on the frontier of the American West or even in the stews of London circa 1812. Did anyone need a government ID to do anything those days? Opening an account at a bank did not require the customer to provide fifteen documents proving they were who he said they were.
Back then, if the James-Younger Gang rode into town, they could make off with your savings, but not your identity. In those days the identity was an abstraction. But now it is as real as the bank’s ledger book. Now Frank and Jesse James do not have to go to the bank to rob it. That is for amateurs. Now they hack the database, steal someone’s ID, and get a mortgage under that name. That is not quite as dramatic as a train robbery or getting into a shootout with a posse of armed citizens, but much more effective and profitable.
Presently, anyone wanting to engage in any kind of financial activity has to provide information that the financial institution does not really need, such as a social security number. Doing anything in the United States requires giving some stranger a social security number or a copy of an ID. Finding the best anonymous crypto exchange is a huge problem, too. Cryptocurrency trading platforms, especially centralized ones, also want to know all about their clients.
Identity Verification Compromises Your Privacy
The reason why these onerous requirements exist is the lack of social trust between the government and its citizens when it comes to reporting incomes for taxes. In a perfect society, citizens would report their incomes to the government and pay the appropriate amount of taxes. In the society that exists now, the Internal Revenue Service is constantly digging around looking for someone to screw over. That is why you need your social security card handy everywhere you go.
Is it any wonder why the United States leads the world in identity theft? With everything digitized, it is now a thousand times easier for a thief to wreck someone’s life using that person’s good name. It has a chance to happen because these alphabet soup organizations in the Federal government need to know everything about you. If that is the way it will be, it is not a stretch to say financial privacy is dead.
Privacy is One of the Core Tenets of Godex
The irony here is you exchange crypto advertised themselves as “private” venues, where customers could make trades without having their identities compromised. But now, they require users to provide more identity documents than the miserable wretch at the Department of Motor Vehicles when you come in for a new license. Fortunately, there are still exchanges that do not pay lip service to privacy.
Godex is an emerging you exchange crypto on which users can trade in dozens of currencies without having to provide their personal information. All they have to provide is a crypto wallet address. This condition keeps users’ identities secure by not giving hackers any way to compromise trader’s personal details.