Many users feel a strong aversion when they discover that identity verification is required upon registering for a cryptocurrency exchange. Including myself, I am unwilling to let trading platforms know my identity information—why should I undergo facial recognition on the platform? Isn't the anonymity and untraceability that cryptocurrencies originally touted? Why is real-name authentication still required when purchasing tokens on exchanges? If I withdraw funds from a real-name exchange, my transaction records will definitely be tracked. Previously, I also heard that some ransomware publicly disclosed Bitcoin wallet addresses to evade law enforcement agencies' tracing.
The current question is, if I buy and sell Bitcoin through real-name authentication on an exchange, will my identity information be leaked? Registration requires binding a mobile phone number, ID card, and even using a Google email—will the trading platform leak this data? These questions undoubtedly trouble everyone: we not only question the purpose of the platform collecting identity information but also worry that they will sell personal information after collecting it. So, how should we respond?
Why do cryptocurrency exchanges require KYC?#
This article will analyze why cryptocurrency trading platforms enforce real-name authentication. After real-name authentication, will exchanges actively sell user information? First, let's review a few cases.
Taking HSBC and Standard Chartered Bank as examples, both were fined heavily for insufficient anti-money laundering measures. HSBC was fined $1.9 billion because drug lords in Mexico and Colombia used it for money laundering, even providing services to terrorist organizations, and allowed blacklisted countries like North Korea and Iran to open accounts for trading.
Standard Chartered Bank was similarly fined $132 million by the UK Financial Conduct Authority for failing to implement adequate anti-money laundering measures, which led to criminal groups laundering $265 billion. In traditional financial institutions, anti-money laundering and identity verification are mandatory requirements; otherwise, they will face heavy penalties. Holding a banking license but failing to fulfill anti-money laundering obligations will inevitably attract regulatory action—this is a globally accepted rule: profit must come with responsibility.
Current exchanges connect to the fiat currency world, and criminal, money laundering, and drug systems may exploit them for laundering; therefore, exchanges must adhere to the AML (anti-money laundering) system. If they do not comply, exchanges will bear criminal responsibility. From the platform's perspective: if strict KYC and mobile verification are not implemented, once an incident occurs and law enforcement requests information on criminal accounts or mobile numbers, the exchange will face hefty fines. The dirty money of criminal groups and gambling syndicates attracts trouble like flies, which exchanges want to avoid. Therefore, all customers must complete identity verification.
Will cryptocurrency exchanges leak identity information?#
Exchanges typically do not actively leak personal information because it is not worth the risk. Essentially, cryptocurrency exchanges are platforms for accumulating trust—if they are untrustworthy or unsafe, users will leave. Platforms place a high value on their reputation, striving to become century-old establishments. For example:
South Korea's largest exchange, Upbit, was investigated for failing to strictly verify between 500,000 to 600,000 accounts. After the incident, trust in the exchange from regulators and the public plummeted. From their own interests, exchanges will not actively leak customer identities; otherwise, damage to their reputation will lead to user loss. However, just because exchanges do not actively leak does not mean others won't steal:
- Local operators may monitor SMS content—if the mobile number is bound to the exchange, operators can identify the user and sell the data.
- Using malicious free VPNs may implant backdoors; free services aim to steal real-time data, and once connected, all transmitted information can be intercepted and sold by the VPN.
Therefore, as users of cryptocurrency exchanges, we need to pay more attention to online security. This explains why trading platforms enforce identity verification. Mainstream platforms have made efforts in compliance: for example, OKX has obtained the first license in Dubai and a license in Singapore; Binance has also obtained a license in Dubai; Bitget has invested in the OSL Group (which holds a Hong Kong license); and Bybit has licenses in Dubai and the Netherlands.
These platforms operate in a compliant manner. Choosing platforms that have obtained licenses in specific countries or regions is more reliable than those that only hold a U.S. MSB license (which can be purchased for just $20,000). The aforementioned exchange licenses cannot be directly purchased; they must genuinely meet local compliance requirements to be obtained.
If you have not yet registered for an OKX or Binance account, it is recommended to try them first—
1. OKX or Alternative Link#
- Asset Scale: $17.1 billion (slightly increased compared to 2024, reflecting market expansion)
- Number of Trading Pairs: 620 (25 new, covering more emerging coins)
- 24-hour Trading Volume: $16.05 billion (benefiting from global user growth)
- Highlights: OKX is operated by OKEX Technology Company Limited and received early angel investment of millions from Tim Draper. This legendary investor has previously bet on Hotmail, Baidu, and Tesla, showcasing keen insight. In 2025, OKX will maintain a leading position among global trading platforms with various services such as spot, contracts, and DeFi, especially performing strongly in the Asian market.
2. Binance#
- Asset Scale: $12.85 billion (continuously growing, solidifying its leading position)
- Number of Trading Pairs: 780 (38 new, closely following market trends)
- 24-hour Trading Volume: $19.025 billion (trading volume hitting new highs)
- Highlights: Founded by Changpeng Zhao (CZ), Binance remains a "giant" in global cryptocurrency trading in 2025. Despite facing scrutiny due to regulatory pressures, Binance attracts over 150 million users with top-notch technology and user experience. Domestic users need to register via email and use a VPN, making it still a preferred platform.
🔥🔥🔥 Alpha Finds Useful Tools#
1️⃣ Axiom Dog Tool https://axiom.trade
2️⃣ Gmgn Dog Tool https://gmgn.ai
3️⃣ dbot Dog Tool https://app.debot.ai
4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com
Related Articles#
Everyone is Searching For#
Buying Bitcoin, Bitcoin, Trump Coin, Domestic Bitcoin Purchase, Coin Trading Exchanges, OKX Download Registration, Domestic OKX Recharge, Binance App Registration, Binance App Download, Binance Platform Buying Coin Tutorial, Binance Registration, Binance Airdrop Registration, Binance Apple Download, How to Buy Trump Coin, How to Buy Dogecoin, Buying Bitcoin with RMB, How to Download OKX, Web3 Airdrop, Web3 Zero Airdrop, Bitget Mainland Download Registration, OKX Passport Registration, OKX Download, Binance Download, Coin Trading Side Business, OKX Contracts, How to Recharge RMB on OKX, How to Recharge OKX, How to Create an NFT Wallet, How to Recharge RMB on Huobi, Beginner's Guide to the Crypto World, btc8848.com, Tony's Trading Strategy for Contracts, Contract Leverage Bit Wave, DeFi Mining, Crypto World Airdrop, Can Airdrops Still Be Played in the Crypto World, What to Do if a Contract is Liquidated, How to Buy Trump Coin on OKX and Binance, How to Buy Ethereum on OKX and Binance, How to Play DeFi Staking Mining, Can NFTs Still Be Played, How to Airdrop in Web3, How to Play Zero Airdrop in the Crypto World, How to Strike Inscriptions, How to Strike Runes, Crypto Beginner's Guide, How to Trade Coins, Can You Make Money Trading Coins, Crypto Beginner's Tutorial btc8848.com, Can You Make Money Trading Coins, What is Contract Leverage, DeFi Mining, How to Play Airdrops in the Crypto World, OKX Airdrop, Node Staking, Liquidation, Financial Freedom, Night Investment heiyetouzi.xyz