The Poloniex crypto exchange has returned the ability to conduct unlimited trading to unverified users

Colin Baseman

Poloniex exchange again allows its clients to use the platform's functionality without verification and restrictions. The only nuance is withdrawal per day for those who did not pass the KYC is no more than $10,000.

All new users can register via an email address without providing any additional information about themselves. In addition to trading, such users get access to the betting functionality and are allowed to participate in contests.

Those who are already registered on the exchange and have not passed verification will have the opportunity to work with the platform without limits for the next few months. In addition, Poloniex will expand the listing of cryptocurrencies in the beginning of 2020.

What is user verification

In the past few years, many exchanges have begun to verify their users. This is especially clear in the United States, where the identity verification procedure is mandatory for working with cryptocurrency platforms. 

This is due to the fact that governments in developed and many developing countries are fighting money laundering as well as the financing of terrorism. As a result, in order to work with a particular jurisdiction, cryptocurrency exchange platforms must not only know all their clients, but also make sure that the origin of the client's funds is completely legal.

How does the verification process work? It usually includes several stages:

  1. Initial registration with the provision of personal data by filling out the registration form on the site.
  2. Providing scanned copies of identification documents (passport, ID card, driver's license).
  3. Sending copies of utility bills or scans of other documents confirming the client's place of residence to the exchange's security service.

In some cases, you will also be required to take a selfie with your passport. Sometimes the support service can set a time when the Skype call will be held with you. 

As far as the verification of the user safe for users

This procedure does not pose any danger to those who work legally and legally. Copies of documents will not be made available to third parties. On the Internet, you can find a myth that copies of documents provided by users, for example, can be used to obtain loans or other fraudulent schemes.

In fact, just a copy of your passport or ID card is not enough to get a Bank loan. Moreover, some cryptocurrency traders recommend leaving special watermarks on copies, which can be applied today in almost any graphics editor. 

Why do I need to verify my account

As noted above, this is primarily a legal requirement. Companies that conduct financial transactions with clients must be interested not only in their identity, but also in the sources of their investments. 

This makes it possible to fight the financing of terrorism to some extent. In addition, the tax authorities of countries are also interested in being able to find non-payers who evade taxes. To learn more about what taxes are paid on cryptocurrencies in the United States, see The article "Taxation of cryptocurrencies in the United States: the position of the fiscal service in relation to airdrops and forks."

In addition, verification is one of the security tools for the trader or investor. For example, if a withdrawal request is made from a user's account, in case of suspicious activity, the exchange can freeze all operations with this account and resume them only after personal communication with the user via a video call. Thus, an attempt to steal funds will be prevented. 

The security issue could be solved by installing two-factor authentication, but some sites refuse customers this service (2fa connection) without verification. 

Sites that do not require verification

One of the goals of cryptocurrencies is to allow users to conduct direct transactions among themselves, bypassing intermediaries and maintaining anonymity. Therefore, many users prefer not to show their personal data. They are provided with a number of exchanges that do not require verification of identity and do not set restrictions.

The only nuance is that some sites restrict access to trade for residents from the United States. Without verification and limits, you can currently work with the following platforms:

  1. Yobit. The exchange is quite well-known in the cryptocurrency community. Offers relatively low commissions and more than 500 tokens in the listing. 
  2. Livecoin. This exchange offers the opportunity to use the functionality without limits and verification. However, if you use bank cards, you will have to pass verification in any case. 
  3. EXMO. It is also a well-known platform that is popular in Europe, especially in its eastern part. The exchange offers small transaction fees (up to 0.2%) and the most popular cryptocurrencies for trading. In addition to trading, platform users can participate in various contests.
  4. Bitmex. A lesser-known site. Offers trading with leverage. You can also trade anonymously here, but the offer States that the site management can request the user to pass verification at any time. 

Naturally, the Poloniex exchange is now in this list. The platform offers a large number of currency pairs and the possibility of reducing the commission for large trading volumes. In 2019, it was bought out by Asian investors. Apparently, this step led to the fact that the platform allowed traders to remain anonymous in trading cryptocurrencies.