Looking for a crypto exchange with no KYC? Some crypto investors prefer to go about their crypto-business without having to disclose personal information. Here we round up the most credible, secure and user-friendly exchanges out there where KYC is not necessary.
What is KYC?
KYC is an acronym for 'know your customer' (or sometimes, 'know your client'). It refers to the verification of a customer's identity. Identity verification requires personal information that can be used to verify identity, such as ID card, passport or gas bills. These ID document requirements vary depending on the exchange.
KYC is (broadly) implemented to:
- Monitor transactions
- Track criminal behaviour (eg. money laundering)
- Prevent terrorism financing
Why might someone want to avoid KYC in crypto?
When Binance made full-compliance KYC mandatory in August 2021, it lost 3% of its users. This proves that there are thousands of people out there who want to trade crypto without initiating KYC process. Why is this? People may want to avoid KYC in order to:
- Hide their credentials to authorities
- Want to maximise decentralisation
- Not having to trust someone with your sensitive info.
- Hide proceeds from creditors, employees, or even spouses
- Don’t want to wait for validation process
Now you know what KYC is, let's get into seven crypto exchanges that do not ask for KYC information upon registration. Here we will give them a brief introduction, as well as some of the unique aspects they can offer as a decentralised exchange (DEX).
KuCoin is a decentralised exchange born from Singapore. It allows trade over 370 cryptocurrencies, which is among the widest ranges found on crypto exchanges. This includes its native token (KCS), which reduces fees and earns rewards. The account verification process is optional, so people can trade crypto with just an email address.
With KuCoin, you get early access to projects that are not on the larger exchanges like Binance and Coinbase, which creates a big opportunity. Getting it is beneficial because if one of them is listed on big exchanges, their price is likely to pump. This allows you to get in before that pump and make some big gains. Also, iI you hold their coin, KCS, you get 20% off on trading fees.
Withdrawal fees: without KYC you can withdraw 5 BTC per 24 hours, with KYC it’s 100 BTC per 24 hours.
CoinEx is a no-KYC exchange that offers spot and margin trading, as well as trading on perpetual contracts. There are tons of cryptocurrencies and tokens on the site, including its unique CET coin. Using this coin when trading has advantages in terms of commission fees. When using CoinEx, there are attractive conditions provided for large trading volumes.
Withdrawal fees: Without KYC: $10,000 per 24 hours. With KYC: $1,000,000 every 24 hours.
Bisq has a mission is to provide a secure, private and censorship-resistant method of exchanging crypto for national currencies. Bisq acknowledges that most centralized exchanges require users to divulge personally identifying information in order to set up an account, and then in turn link users' trading activity to their respective identities. They believe that this practice creates extreme risks for users that their personal details and financial information will be stolen, leaked or otherwise used against their own best interests.
Bisq state on their website: "Where Bitcoin’s motto is 'be your own bank', our motto is 'be your own exchange'.
Withdrawal fees: 2.173 BTC per 24 hours
HODL HODL allows users to trade directly with each other and it doesn't hold user’s funds — locking it in multisig escrow instead. This minimizes the possibility of theft and reduces trading time, both very cool features.
Since the platform doesn’t hold funds, it’s not subject to complex compliance procedures. This allows trades to happen directly between users' wallets and without having to submit their personal data.
LocalCryptos enables you to buy and sell crypto using non-custodial wallets and a non-custodial escrow system, all powered by smart contracts. Non-custodial platforms don't hold users' private keys.
Like some other DEXs we’ve mentioned, you are never buying cryptocurrency from or selling cryptocurrency to LocalCryptos, instead you are always in direct exchange with another user.
Another cool thing about LocalCryptos is that it’s built in such a way that it feels similar to an ordinary platform, meaning people moving from a big centralised exchange feel right at home.
Withdrawal fees: LocalCryptos does not charge a fee for you to withdraw from your wallet. You do, however, pay a network fee. This is paid direct to miners of the respective blockchain to process your transaction.
LocalMonero is probably the most trusted and well-established P2P Monero exchange in the XMR (Monero coin) community. And there's no KYC checks.
Although heavy in its limitation in the number of cryptocurrencies you can trade in, LocalMonero you make a trade directly with another person, unlike centralised crypto exchanges. This makes the process lean and fast, as there is no corporate overhead.
Withdrawal fees: Transactions to wallets of other LocalMonero users are free.
Block DX call themslves 'the world's most decbtralised exchange', and it's hard to find fault in this statement. Why?
Well, most exchanges that claim to be decentralised have either one or some of the components centralised. But for any platform to be a truly 'trustless' DEX, four of its components must be decentralised. Block DX uses a special protocol to decentralise the four critical components: funds storage, order books, order matching, and settlement. It’s genuine decentralisation at work.
Withdrawal fees: You never pay a withdrawal fee because your funds always remain in your custody.
How Koinly works with crypto exchanges
Koinly crypto tax software makes it easy to do your crypto taxes - whichever exchange, wallet or blockchain you’re using. We support all of the exchanges mentioned above, as well as hundreds more. You can see a full list of our integrations here.
All you need to do is connect your exchange with Koinly using API or by importing a CSV file of your transaction history. Just select add new wallet in Koinly and find the exchange or wallet you’re using.
Then you can pick whether to automatically connect with an API or upload a CSV file of your transaction history from that wallet.
Connect all the exchanges, wallets and blockchains you use so Koinly can calculate your crypto taxes accurately. Once you’ve done this, you’ll be able to find all the information you need about your crypto capital gains, losses, income and expenses under the tax reports page. You can also download specific tax reports for the US including a pre-filled Form 8949 and Schedule D for capital gains and losses. Additionally, you can download reports for tax apps like TurboTax and TaxAct.