With the increasing regulation of trading in cryptocurrencies and countries that are even thinking of a ban on Bitcoin and Co., one thing could become increasingly important: an exchange without KYC procedures. The co-founder of the blockchain company Casa, a company for the secure storage of crypto currencies, which is operated by, among other things, Venture capital of chainsmokers is financially supported, so something new came up.
Centralized exchanges don't match the basic idea of Bitcoin (BTC)
He founded the website "kycnot.me"which means"Know-Your-Customer, not with me". The website gives users an overview of all exchanges that allow trading in cryptocurrencies without the release of their private data.
This new project is cataloging privacy preserving bitcoin exchanges that don't require KYC: https://t.co/VoyWq2ITyg
- Jameson Lopp (@lopp) June 12, 2020
The developer takes the following criteria into account on the website:
- The site was tested by him personally or by trustworthy users
- The site has a custodial wallet - with this form of storage, users are not in possession of the private keys
- Creating the account requires personal information / No personal information is required
- The service offers peer-to-peer trading
- The site may request KYC for certain activities
- The site offers a gate service
A total of 14 exchanges were assessed according to these criteria:
Focus on Bitcoin (BTC) and Monero (XMR)
But not all cryptocurrencies are considered in the assessment. Jameson Lopp, owner of the website, only lists Bitcoin (BTC) and Monero (XMR) and no other digital currencies. He justifies this decision with the following statement on the website:
Bitcoin because it is the largest currency, with the highest market capitalization and the strongest adoption among all cryptocurrencies. Monero because it's really digital money and it's the only privacy coin that preserves privacy by design and brings real interchangeability.
Jameson Lopp especially criticizes large centralized exchanges, the use of which is no different from banks. Because those who do not have the private keys, as is the case with centralized exchanges, use the wallet just like a bank account. This is not Bitcoin's basic idea of becoming your own bank and being able to send values around the world using blockchain technology and without a middleman.
Rising regulation could also be a cause of the extreme popularity of decentralized exchanges. As we reported a few days ago, these are on the rise and the tokens of the decentralized exchanges are growing enormously compared to those of the centralized exchanges:
Markus from Kryptokumpel.de
Photo credit: pixabay.com | CC0