Nearly every Bitcoin exchange in the world is adhering to KYC and AML requirements, as they want to protect their own platforms from scammers, as well as abide by the legislative framework in the countries they operate in. Some people have taken offense by these detailed requirements, although some exchanges take things one step further than they need to. When someone wants to buy or sell Bitcoin, there does not seem to be an immediate need to link one’s social media account, although some platforms might require one to do so.
Also read: Is Ethereum’s Mining Getting Too Centralized? Fine Line Between KYC Compliance And Intrusion
It only makes sense for companies dealing with customer funds – in particular on an international scale – to perform thorough security checks at every given time. Verifying someone’s identity is pertinent to ensure people are who they claim to be, and no stolen or money laundered funds is exchanges to and from Bitcoin through the exchange platform itself.
However, there are only so many steps a Bitcoin exchange is required to take by law, including asking for a government-ID scan, a proof of address, and if needed, a document signed by a notary. That latter document is usually only asked when dealing with business or corporations, or high-volume traders.
But asking for somebody’s social media accounts is a bit strange, although some people might argue it makes perfect sense as well. People are far more open about themselves on social media, and a lot of information can be derived from their profiles. But at the same time, this is invading user privacy beyond any measure, as one’s private life has little to do with their Bitcoin activities in most cases.
Coinbase , for example, has allegedly been asking for customers’ LinkedIn profiles, […]
