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> For starters, cryptocurrency exchanges need to know the crypto they trade with VERY well. It's an area where the law won't help you if you mess up. If someone
by saosebastiao 9y ago
> For starters, cryptocurrency exchanges need to know the crypto they trade with VERY well. It's an area where the law won't help you if you mess up. If someone steals a bunch of bitcoin from your exchange, a police report isn't going to get it back, it's gone for good.
With good KYC regulation and enforcement many "hacks" can be mitigated. The Bitgrail hack, for example, was performed by customers taking advantage of shitty code. Presumably they know which accounts withdrew funds, but if they knew who the customers were that belonged to those accounts, they could go after them. This stuff is a big reason why I support exchanges being regulated as money transmitters.
- tudorconstantin 9y agoKYC wouldn't help if hackers breach into legit users accounts.
- Klathmon 9y agoAll the KYC laws in the world won't help when someone in another country transfers a bunch of bitcoin from the exchange account to theirs. Or even worse in some cases, someone that maliciously "burns" all of your bitcoin irrevocably destroying it forever by sending it to a bad address. Even if you catch the person that did it, that bitcoin is gone forever, and you can't just bring it back without concensus of the extreme majority of all miners and users (which isn't going to happen in bitcoin, it barely happened in Ethereum when it was much smaller with the DAO hack)
- russdpale 9y agoI disagree. KYC means nothing after the hack has happened. I dont care about people being retroactively punished, I want my coin back.
- deleted 9y ago[deleted]