Many users feel particularly resentful when they find out that identity verification (KYC) is required when registering for a cryptocurrency exchange. Including myself, I do not want trading platforms to know my identity information—why should I undergo facial recognition on the platform? Cryptocurrency has touted its untraceability, but why is real-name authentication still required when purchasing tokens on exchanges? If I withdraw tokens from a real-name exchange, my activities are likely to be tracked. Furthermore, I have heard of some ransomware incidents where Bitcoin wallet addresses were made public to evade tracing.
Now, if I buy and sell Bitcoin on an exchange through real-name authentication, will my identity information be leaked? When registering, I need to bind my phone number and ID card, and use a Google email; will the trading platform leak this data? These questions are troubling: we question the purpose of the platform collecting identities, and are even more concerned that they might sell the information after collecting it. So, how should we respond?
Why do cryptocurrency exchanges require KYC?#
This article will explore why cryptocurrency trading platforms require real-name authentication. After real-name verification, will exchanges actively sell this information? First, let's analyze a few cases.
For example, HSBC and Standard Chartered have both faced hefty fines for inadequate anti-money laundering measures. HSBC was fined $1.9 billion for allowing drug lords in Mexico and Colombia to launder money and even serve terrorist organizations, permitting blacklisted countries like North Korea and Iran to open accounts and trade.
Standard Chartered was similarly fined $132 million by the UK's Financial Conduct Authority for failing to implement adequate anti-money laundering measures, resulting in criminal groups laundering $265 billion. In traditional financial institutions, anti-money laundering and identity verification are mandatory requirements; otherwise, they face severe penalties. Holding a banking license without fulfilling anti-money laundering obligations will lead to strict punishment from regulators—this is a global rule: earning profits comes with corresponding responsibilities.
Currently, cryptocurrency exchanges can also connect to the fiat currency system, which may be exploited by criminal, money laundering, or drug systems. Therefore, exchanges must comply with anti-money laundering (AML) regulations. Failure to comply will result in criminal liability. From the exchange's perspective, if strict KYC and phone verification are not implemented, they will be unable to respond when law enforcement agencies request information on criminal accounts, leading to substantial fines for the exchange. Criminal groups and gambling funds are like flies, bringing only trouble, and exchanges are extremely vigilant about this. Thus, exchanges require all customers to undergo identity verification.
Will cryptocurrency exchanges leak identity information?#
Exchanges will not actively leak personal information, as this would be detrimental to them. Essentially, cryptocurrency exchanges are platforms for accumulating trust; if they are untrustworthy or unsafe, users will leave. They place a high value on their reputation and strive to become long-standing institutions. For example:
South Korea's largest exchange, Upbit, was investigated for failing to conduct strict identity verification on 500,000 to 600,000 accounts. After the incident, trust in the exchange significantly declined among regulators and the public. 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.
- Your local operator may monitor SMS content. For example, if the phone number bound to the exchange is detected by the operator, they will know you are an exchange user and may sell your phone number.
- When using malicious free VPNs, backdoors may be implanted in the background. The reason VPNs are free is to steal real-time data; once used, all transmitted data may be accessed and sold by the VPN.
Therefore, as users in the cryptocurrency space, it is even more important to pay attention to cybersecurity. This explains why trading platforms enforce identity verification. At the same time, these platforms are making efforts in compliance: for example, OKX has obtained the first license in Dubai and holds a license in Singapore; Binance has also received 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.
Each exchange is committed to compliant operations. I recommend using platforms that have obtained licenses in specific countries or regions, rather than those that only hold low-cost U.S. MSB licenses (which can be purchased for just $20,000). The licenses of the aforementioned exchanges 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, I suggest registering one 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 led by 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, consolidating 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 “behemoth” 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; it remains the preferred platform.
🔥 Solving the issue of accessing OKX exchange in China#
Many exchanges' original domain names may be blacklisted, or access speed may be affected due to servers being located overseas. For ordinary users, this situation often leaves them feeling helpless, even doubting whether the issue lies with the exchange itself. In reality, this is more about the network environment rather than a service interruption on the platform itself. To address this, exchanges like OKX and Binance typically update alternative domain names regularly to ensure users can continue accessing the official website through alternative addresses.
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- OKX alternative domain Overseas OKX - requires VPN or alternative link
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- Binance alternative domain Binance
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- Bitget alternative domain Bitget
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- Bybit alternative domain Bybit/Bybitglobal
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- Huobi HTX alternative domain Huobi/HTX
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- Gate.io alternative domain Gate.io
🔥 Further reading#
🔥 Useful tools for finding gold dogs#
1️⃣ Axiom dog charging tool https://axiom.trade
2️⃣ Gmgn dog charging tool https://gmgn.ai
3️⃣ dbot dog charging tool https://app.debot.ai
4️⃣ Morelogin multi-account fingerprint browser www.morelogin.com
Everyone is searching for#
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