To KYC or to not KYC? On this episode, Fintech Zoom’s Anna Baydakova talks to Hodl Hodl and Bisq, two non-custodial, no-KYC bitcoin exchanges.
One 12 months in the past, the Monetary Motion Activity Drive, the worldwide anti-money laundering watchdog, dominated that crypto transactions knowledge ought to be controllable, and ever because the query has been not if you KYC your customers however how you do it.
However not all bitcoiners have surrendered to this norm. Hodl Hodl and Bisq don’t present centralized custody and don’t examine consumer identification. In addition they don’t make use of the blockchain tracing instruments to dam the “tainted” cash (blacklisted as coming from illicit actions), which has turn out to be a should for main bitcoin exchanges nowadays.
What comes with this? An opportunity to purchase and promote bitcoin with out revealing your identification, in addition to way more accountability over how you purchase and retailer your crypto. Max Keidun, the CEO of Hodl Hodl, and Steve Jain, contributor to Bisq, dig into why, within the occasions of crypto-compliance, individuals nonetheless would possibly want (or possibly simply lawfully need) to maintain their bitcoin offers to themselves.
There are extra inquiries to come up from such old-school-cypherpunk considering: how will you ensure you don’t get scammed at these p2p platforms? What do you do when you purchase “tainted” cash blacklisted by the FATF-abiding exchanges and distributors?
Max and Steve share their takes on this, and the primary rationalization might be: “everything has a price.” Together with freedom from surveillance and knowledge leaks.
We additionally contact the matter of decentralization that’s essential to each Hodl Hodl and Bisq. Hodl Hodl is planning to open-source itself, so everybody can clone and run their very own p2p bitcoin exchange in case the regulators go after Keidun and his group. And Bisq totally decentralized final 12 months, when it turned all its resolution making over to a DAO.
The chief in blockchain information, Fintech Zoom is a media outlet that strives for the very best journalistic requirements and abides by a strict set of editorial insurance policies. Fintech Zoom is an impartial working subsidiary of Digital Foreign money Group, which invests in cryptocurrencies and blockchain startups.