However, the signup process is currently tedious, and it can take several minutes to complete the account opening process.
Many crypto brokerage firms have been forced to install KYC verification processes to comply with regulations that seek to curb the use of cryptocurrencies for money laundering, terrorism financing and other criminal activities.
It is also important to note that not all countries require KYC requirements. An exchange might require KYC verification for users in one country but not require the same from users in another country.
Below are the best trading platforms without KYC requirements.
Binance is the largest exchange platform globally in terms of trading volumes. The exchange is one of the best platforms to trade without KYC requirements because it offers a better sense of security, and it is available in many countries.
Binance will allow you to trade up to 2 BTC per day without completing a KYC verification. Therefore, if you want to buy a large number of tokens, you will be required to complete a KYC verification process.
Moreover, users in the US cannot use the Binance exchange but are restricted to Binance US. Every user, whether a small trader or a large trader, has to complete a KYC verification process on this platform.
Thereby, if you want to use Binance without KYC, ensure you trade below 2 Bitcoins per day and reside outside the US.
If you prefer trading crypto derivatives and are looking for a trading platform with no KYC, you should consider Bybit. Bybit does not require a KYC verification, but US users cannot use this platform.
Bybit is popular for offering the BTC/USD perpetual swap. However, it also supports other altcoins such as Ripple, EOS and Ethereum. The platform has a user-friendly layout and a good customer support system that is always open and available in several languages.
Bybit has a mobile app for iOS and Android users, and its lack of a KYC verification process makes the signup and trading process very easy.
The other centralized exchange platform where you can buy cryptocurrencies without a KYC verification is BitMEX. BitMEX is mostly a Bitcoin exchange, but you will also find several altcoins listed therein, such as Cardano, Ethereum, DASH, Bitcoin Cash and more.
At BitMEX, you will not be mandated to complete a KYC check for deposits and withdrawals. While it is not one of the largest exchanges, it has ample liquidity to guarantee fast trade settlements.
Therefore, if you want to transact in Bitcoin and some of the most popular altcoins without having to set up a KYC check, BitMEX could be another option to consider.
The other exchange platform where you can buy and sell cryptocurrencies without completing a KYC verification process is Kraken. Kraken is one of the oldest and largest exchange platforms.
The Kraken exchange comes with five verification tiers, which start from Tier 0 to Tier 4. If you do not want to complete a KYC, you can be a Tier 0 user, but this ranking will not allow you to trade.
Tier 1 is a ranking that will allow you to deposit and withdraw in digital currencies. You only need your full names, date of birth, country, and phone number to get to this ranking. You can also get Tier 2 by providing your address.
These verification tiers allow a trader to only submit the information they are comfortable with, depending on the purpose of using the platform.
Changelly allows the transfer of cryptocurrencies from one exchange platform to the other. Moreover, it will only require traders to provide an email address during sign-up, and it does not verify whether the email address is genuine or not.
While having a KYC verification system goes against the nature of decentralization, the changing regulatory landscape is mandating that it will prevent the use of cryptocurrencies for illicit activities and financial fraud. Therefore, KYC requirements could only become stricter with time.