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Is there a consensus regarding trusting these exchanges with scans of verification documents? Bitstamp is asking for scans of a drivers license or passport to
by uptown 9y ago
Is there a consensus regarding trusting these exchanges with scans of verification documents? Bitstamp is asking for scans of a drivers license or passport to verify the account and proceed with transactions.
- conception 9y agoI think it's the same as with all exchanges - there's always a possibility of them losing everything, id, your coins, etc. At least if you use a US based one, there's some possibility of legal recourse.
- 21 9y agoThis is very normal in the financial services industries. I've done it for stock brokers, forex brokers, even money transfer services. Bitstamp is one of the more legit exchanges.
- bpicolo 9y agoIt's 100% necessary for money-laundering prevention. I'd be way more concerned using an exchange that doesn't do it.
- uptown 9y agoBasically, the KYC regulations?
- user5994461 9y agoYes, KYC = know your customer, you gotta check the identity of your customers.
- AlexandrB 9y agoIf I was a hacker, bitcoin ecosystem companies would look like mighty tempting targets. Combine the high value of the data (wallets), often inexperienced security teams, lack of security regulation or oversight, and the presence of additional assets sellable on the black market - like a bunch of personal information - and you have a very juicy target for cyber attack. I hope the big bitcoin players are being very diligent about their security practices right now.
- stordoff 9y agoProbably can go either way, and thus depends on the exchange in question. It certainly could be used as a way to gather ID documents for malicious purposes, but a company asking for them is more likely to be trying to follow the relevant regulations (KYC etc.) which would make them more trustworthy.