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Summary
- Anonymous Crypto exchanges do not follow Know Your Customer (KYC) rules.
- Crypto investors who choose to keep their identity hidden prefer to trade through decentralized exchanges.
- Financial regulators’ clampdown on mainstream crypto exchanges is likely to force digital assets trading platforms to opt for KYC directives.
Many crypto investors prefer trading anonymously on decentralized exchanges as virtual platforms often face the risk data theft. But the expanding clampdown by securities regulators on crypto trading platforms may put an end to that practice.
Financial authorities in the UK and in some parts of North America have been pushing digital currency traders to follow Know Your Customer (KYC) guidelines. Some mainstream crypto exchanges have even bent their rules in certain regions to accommodate these directives.
To ensure safety, financial regulators have also been directing exchanges to adhere to customer due diligence, which is likely to mitigate frauds in the crypto space
The KYC development has left some investors searching for non-KYC crypto exchanges to trade on.
On that note, let us look at five anonymous or no KYC crypto exchanges that investors can explore for trading.
- Bitfinex
Bitfinex is a private cryptocurrency exchange that enables investors to load, unload and trade in digital tokens without identity verification.
However, the crypto exchange could change its KYC stance at any given point in the wake of authority regulations. As of now, customers can reportedly transfer or buy up to 10 Bitcoins without providing their identity.
- Binance
Binance, the world’s largest crypto exchange by volume, allows users to trade in Bitcoin and altcoins without KYC. The private exchange also offers peer-to-peer transaction options.
Binance had to halt its services in Ontario and was banned from operating in the UK due to non-KYC compliance. It continues to function in other regions.
Binance's native token BNB has defied stringent actions and risen over nine per cent in the last one week.
Binance, however, does pose a KYC requirement for orders of more than two Bitcoin tokens. Hence, the crypto exchange does not offer all its services for non-KYC users.
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- Monero
Monero (XMR) supports anonymous transactions on its blockchain platform. Monero transactions are heavily encrypted and not easy to trace. The crypto platform does not ask for any user identification.
Monero’s native token, XRM, has rocketed in the last one year on the back of its anonymity crypto services. XRM token was trading at US$ 208 apiece as of July 8, 2021.
The blockchain project’s token is placed at the 27th position, with a market value of US$ 3.75 billion. It has a capped supply of 18 million XMR coins.
- UniSwap
Uniswap (UNI) works on Ethereum-based blockchain technology that enables P2P transactions. Users are required to download the platform to trade in ERC-20 coins.
Uniswap is a purely decentralized platform and requires no identity verification. It allows crypto-to-crypto transactions.
There is no upper bar on maximum withdrawal, and trust wallet users can execute their trades faster than any other popular exchange.
As fiat money is not involved in its operations, it could be a cryptocurrency market’s safe haven. The 10th ranked token is trading at 20.76 apiece, and it has a market cap of over US$ 12 billion.
- Zcash
Zcash (ZEC) is also an anonymous crypto exchange that enables users to explore its decentralized finance platform. The crypto trading platform bolsters its security by using Zero-Knowledge Proof. Zcash.
ZEC is the native token of Zcash, which has been getting traction because of rising non-KYC transactions. It was trading at 111 apiece at the 61st position with a market cap of US$ 1.35 billion, as per CoinMarketCap data.
The above constitutes a preliminary view and any interest in stocks and cryptocurrencies should be evaluated further from investment point of view.
