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Changelly can keep your Monero if you don't submit KYC documents

04 Sep, 2018
by David Borman
News
Changelly can keep your Monero if you don't submit KYC documents

Crypto exchange Changelly recently admitted that in the event of insufficient KYC (Know Your Customer) documentation, it reserves the right to withhold cryptocurrencies such as Monero from customers looking to transfer them. This is due obviously to the nature of Monero and other privacy coins, being clear targets for money laundering and other nefarious financial practices.

As reported by The Next Web, Changelly first openly admmitted to this practice after a user on reddit began complaining of their funds being quarantined after the exchange classified them as "High Risk." In a statement, Changelly said:

“To all Monero community, our risk management system doesn’t mark all transactions out of the blue… Monero is the crypto that hides a sender and recipient thus making transactions untraceable. This [is] a reason why big amounts of other currency got to be checked [sic] before [it’s] converted to XMR.”

Changelly was quick to point out that in no way are all XMR transfers being tagged, and that any transfer will be approved with the submission of adequate KYC documentation. One would assume this means ID's, addresses, bank information or other such personally identifying info.

This is a not too surprising move from Changelly, as in general privacy coins have been a rising concern for exchanges. Japan has already cracked down on exchanges that offer privacy coins, threatening to revoke liscenses.

Just how the community will repsond to this remains to be seen, but privacy enthusiasts must see it as a setback. Ultimately, the battle over privacy and safety wages on.

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Read more about:Monero (XMR)

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