June 19, 2019 at 2:04 pm #6512
Hi, Can you tell me if the new KYC nonsense will affect the running of the coinpayments extension? I got this email today:
In order to maintain our high standards and operation in the evolving regulatory environment CoinPayments is now rolling out a KYC requirement in waves. Your area has been selected and in order to continue using our Merchant Services (buttons, API, etc.) you will need to complete KYC within 30 days at https://www.coinpayments.net/acct-kyc – if you are only using us for Wallet Services (personal use of the wallets with no commercial activity) then KYC will not be required unless you want to remove your daily withdrawal limits.
This decision wasn’t an easy one for CoinPayments as we firmly believe that privacy is an integral part of cryptocurrencies. We remain extremely thankful for your patronage and support.
If silly money is not involved, I see no non-malicious reason for wanting KYC – but it looks like just using the api is enough for them to want to know stuff that’s none of their business.June 20, 2019 at 7:26 am #6514
That’s an excellent question. I got the same email yesterday.
They clearly say that API access requires KYC and the coin adapter uses the API, so yes, this affects users of the coin adapter.
What I find surprising is that it took them so long to do this, not that they are doing it. All wallets/exchanges/etc are required by law to do this. It’s not like they want to inconvenience their users, but it’s not up to them. My guess is that since they only require KYC for commercial activity, this is probably a requirement from governments for tax purposes.
What’s more, even if you use only the full node adapters on your own servers, you are probably affected by the same laws they are, and you should implement KYC yourself, but that’s another matter. Of course, not every legal jurisdiction has the same laws, but if your users are international, it’s something to keep in mind and discuss with a lawyer.
Personally I will have to go through their KYC process so that I can continue to test and support the coin adapter. For any more details it’s best to contact the CoinPayments support about this.
with regardsJune 20, 2019 at 10:29 am #6515
I got an answer from support, but it conflicts (sort of) with what they said originally.
“If you’re using more than the daily limits we offer, then yes you need to KYC so you can raise your limit.”
Well, I will just wait and see. It’s only by going too far one can find out how far one can go.”
CheersJune 20, 2019 at 12:55 pm #6516
Haha, those are inspiring words! Thanks for sharing this info. We’ll see…June 26, 2019 at 2:09 am #6547
I got the same email. I sent them a support ticket asking the EXACT requirements to complete KYC. Their initial KYC form says, “Enter your name and location then select next”, or something. I’m wondering what the next part of KYC contains? It’s kind of bullshit that I have to fill in personal info before I understand what the full requirements are. What I find laughable is that there is zero mention of the the new KYC requirements in their Blog or Latest News sections. If they consider themselves a real business, they should be completely transparent and informative about this nonsense.June 26, 2019 at 10:10 am #6549
Seems to me that KYC is like an infection; once you get it, other symptoms of the control freaks seem to appear too, like not wanting to tell your customers anything you don’t absolutely have to.
So far it looks like so long as we stay below the threshold, (1000 dollars I think) it will be ok. They will tell us when we have stepped over the line, then we will know. Withdrawals are still working here, so far.
This may be something we will just have to put up with until the decentralized exchanges are fully ready for widespread use.June 26, 2019 at 10:38 am #6552
Actually I don’t think decentralized exchanges (a technology) can solve this issue. If you want to operate a business, you have to comply with the law. Cryptocurrencies are a new technology, and as such, they provide a technological solution to the problem of having robust and censorship-resistant monetary systems. They do not solve the issue of government regulation being unproductive or otherwise misguided. Only a shift in public opinion can do this. While we are living in times with a strong anti-government and anti-bank sentiment, governments still do want to know who pays what, so they can collect taxes. This will not change any time soon!July 7, 2019 at 9:17 am #6572
You could be right, but I think with a decentralized (peer to peer) exchange system, the parasites would have to go after each individual trader rather than collectivizing everyone regardless of what they are doing, just to make things easier for them. Then, if you are not operating in commerce, you won’t be lumped in with everyone who is and have to do all the extra work for them.
What we have in our favor is that they are wrong fundamentally. Imagine if when you buy a loaf of bread, the baker says, you have to work out how much it costs, and if you get it wrong I will prosecute you”
🙂July 8, 2019 at 12:49 pm #6576
You have a point. Just keep in mind that what is right or makes sense, is not always what is implemented. This is a new technology, and it remains to be seen how things will turn out. I for one, am not able to predict the future. My only point is that a state actor does not need to exert control on cryptocurrencies. They can simply exert control on you as an individual or a business (for example, if you fail to provide KYC verification, this can be illegal under existing law). Nobody exists in a vacuum, we are all entities living in legal jurisdictions, and are subject to regulations, whether a technology that we use is censorship resistant or not. If you are also a business entity engaging in ecommerce, then you are being even more closely scrutinized, so keep this in mind.
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