KYC Policies Are Harming Bitcoin, But there Are Some Private Alternatives
Several countries all over the world are starting to regulate cryptocurrencies and Bitcoin (BTC). Indeed, regulatory agencies are trying to impose strict know-your-customer (KYC) and anti-money-laundering (AML) rules for companies operating in the space. The intention is to control the market and avoid scammers. Nevertheless, crypto users do not usually like to provide their private information and data for trading digital assets.
In general, Bitcoin had a negative reputation due to the fact that it was used in the past on the Silk Road. At that time, users were purchasing Bitcoin to pay for drugs and other illicit things in the black market.
With the intention to clean Bitcoin’s reputation, there were several companies and third parties that started to regulate the market. And finally, exchanges around the world had to implement KYC and AML policies. This is something that is harming the community that has always asked for privacy and data protection.
In general, money launderers and criminals do not use Bitcoin and cryptocurrencies to operate. They use other alternatives such as privacy coins that are forbidden in some jurisdictions.
Now it is possible to use ATMs in order to withdraw just a few hundreds of dollars, however, in some places, the ATMs work using a phone number or an ID, which is the same as providing information to KYC and AML compliant exchanges. In some cases, ATMs have very high fees for selling and purchasing digital assets.
Now, Azteco allows individuals to purchase Bitcoin without having to use platforms that require passport information, address and bank accounts. Users can easily purchase Azteco in a shop and redeem the Bitcoin at home. This is very similar to what French Tabac shops are currently doing.
Azteco is trying to reach those users that do not want to provide all private information to companies that are compliant with regulatory agencies.
Say Goodbye to Banks. Say Hello to Bitcoin.
— Max Keiser, tweet poet. (@maxkeiser) January 22, 2019