| json_metadata | "{"app":"Musing","appTags":["cryptocurrency","exchanges","blockchain"],"appCategory":"cryptocurrency","appTitle":"What are the key issues of existing cryptocurrency exchanges?","appBody":"<p> Generally the traditional exchanges collect all the personal data like Name, Address, Date of Birth and along with that one need to provide proof of those details in the form of ID proof and proof of residence and the extent of verification at times even stretched to providing a selfie holding the ID, so as to make sure that the person under consideration is providing those documents and those are not obtained by theft. These processes at first hand are not that user friendly and often the users stand to wait for some time before being able to access to the user interface in exchanges. </p>\n<p><br></p>\n<p><img src=\"https://cdn.steemitimages.com/DQmVVJ1KjXCuKj4eSWMtT85BoqcfMFwstrPTQoygqkssvvt/wp1.png\" /></p>\n<p>The KYC processes are generally done as a measure to comply with AML(Anti-Money Laundering) and KYC(Know Your Customer) policy. The exchange domain is such a big domain that only a few genuine & reputed exchanges does that in order to comply with regulatory obligations. </p>\n<p> Some of the exchanges allow deposit without verification and during withdrawal they put restriction by simply saying to complete the full verification procedure and I think this is the worst ever scenario. When you allow deposit without verification, then why are you imposing restriction when it comes to withdrawal? Is not that weird and suffering for a customer. If the exchange is so concerned about verification then why did it allow to deposit, they should have put this barrier right before deposit. So here one thing is clear that such type of exchanges in the name of regulation want to swindle the money of customers by allowing a deposit without verification and then during a withdrawal, they are asking for complete verification and if somehow the customer fail to verify(whatsoever the reason may be), then the fund will get stuck up with the exchange indefinitely and in past it has happened with so many people.</p>\n<p>Some of the exchanges have nothing to do with exchange business, and their sole intention is to collect the personal data of a large number of people and then just run away.</p>\n<p>Some of the exchanges follow a semi-anonymous procedure and they just ask for mobile number only during the registration process and you can also withdraw from the exchanges but they are limited up to a small amount only and in order to have exclusive unlimited withdrawal or higher withdrawal limits, you have to proof your identity and complete the verification procedure.</p>\n<p><br></p>\n<p><img src=\"https://cdn.steemitimages.com/DQmbfzySvVcQvuGDdMJ1FqA8k6HLH1CFfR4WReACWZL7qCQ/wp2.png\" /></p>\n<p>Revealing personal details to an exchange and providing ID proof and Address proof exposes the following risks:-<br>\n<code>(1) The Govt & Tax Authority will get to know your investment, profits and losses in Bitcoin.</code><br>\n<code>(2) Untrustworthy exchange & Scam exchange will steal your personal information and may sell your data and ID proof to some other agency and may even use that for a wrong cause.</code></p>\n<p> </p>\n<p><img src=\"https://cdn.steemitimages.com/DQmUEqJVSQNLZUEgJ7JtgVBaoRF2HkeSq5DDXHSAuEfxujJ/wp3.png\" /></p>\n<p>(1) It takes a lot of time to get verified (from 2 days to as high as 15 days also, in some cases even more than 15 days also). Validation and Approval are time consuming processes.</p>\n<p>(2) Scanning and taking a snap of the ID and collecting all those things and submitting to the exchange is really a hectic process.</p>\n<p><br></p>\n<p><img src=\"https://cdn.steemitimages.com/DQmbHo7TzyrQv66Mr4rNG6rPKaFUgTGK4CZSkVcVmMLajJo/wp5.png\" /></p>\n<p>High withdrawal fees is also another major headache for many traders in various exchanges and almost all the exchanges charge the same high withdrawal fees which makes retail trader's business expensive or uneconomical and this another major area of concern for small capital traders.</p>","appDepth":2,"appParentPermlink":"p3lb8jll5","appParentAuthor":"divine-sound","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}" |
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