Reasons for Registering and Authenticating Your Identity on Cryptocurrency Exchanges

Why Do Cryptocurrency Exchanges Require KYC Real Name Verification?#

This article aims to explain why cryptocurrency trading platforms require real name verification. After real name verification, will exchanges actively sell user information? First, let's analyze a few cases.

HSBC was fined $1.9 billion for insufficient anti-money laundering measures, involving drug lords in Mexico and Colombia using its platform for money laundering. The bank also provided services to terrorist organizations and allowed blacklisted countries like North Korea and Iran to open trading accounts. Standard Chartered Bank 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. Traditional financial institutions must strictly enforce anti-money laundering and identity verification, or face hefty fines. Holding a banking license without fulfilling anti-money laundering obligations will inevitably lead to penalties from regulators; this is the global operating rule: profit comes with responsibility.

Currently, cryptocurrency exchanges connect to the fiat currency world and may be exploited for money laundering by criminal, drug, or money laundering systems, thus they must adhere to the AML anti-money laundering framework. If they do not comply, the exchanges will bear criminal liability. From the perspective of the exchanges, failing to implement strict KYC and phone number verification means that if an incident occurs and law enforcement requests information on criminal accounts, they will be unable to respond, leading to substantial fines. Exchanges fear the funds from criminal and gambling groups, as these funds are like flies, bringing only trouble. Therefore, exchanges require all customers to undergo identity verification.

Will Cryptocurrency Exchanges Leak Identity Information?#

Exchanges typically do not actively disclose personal information, as it is not worth the risk. Cryptocurrency exchanges are essentially platforms for accumulating trust; if they are untrustworthy or unsafe, users will leave. Therefore, exchanges place a high value on their reputation and strive to become long-standing institutions. Here’s an example.

South Korea's largest exchange, Upbit, was investigated for failing to implement strict identity verification for 500,000 to 600,000 accounts. After the incident, trust in the exchange from regulators and the public significantly declined. From their own interests, exchanges will not actively disclose customer identities to avoid reputational damage that could lead to user loss. However, just because exchanges do not actively disclose does not mean that other parties will not steal information.

Local operators may monitor SMS content. If the exchange's phone number is linked, the operator can identify the user and sell the information.
Using malicious free VPNs poses risks. These VPNs often have backdoors, and their free nature is aimed at stealing real-time data. Once used, all transmitted data may be queried and sold.

As users in the cryptocurrency space, it is essential to prioritize cybersecurity. This explains why trading platforms require identity verification. Mainstream platforms continue to make efforts in compliance: OKX has obtained the first license in Dubai and a license in Singapore; Binance has been licensed in Dubai; Bitget has invested in the OSL Group (which holds a Hong Kong license); Bybit has obtained licenses in Dubai and the Netherlands.

Each exchange is moving towards compliant operations. Choosing platforms that apply for licenses in specific countries or regions is more reliable than merely holding a U.S. MSB license (which costs only $20,000). These platform licenses cannot be purchased; they must genuinely meet local compliance requirements.

If you have not yet registered an OKX or Binance account, it is recommended to register first—

1. OKX or Mirror Site #

Asset Scale: $17.1 billion (slightly increased compared to 2024, reflecting market expansion)
Number of Trading Pairs: 620 (added 25, 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, which received a million-dollar angel investment led by Tim Draper in its early days. This legendary investor has previously bet on Hotmail, Baidu, and Tesla, showcasing his keen insight. By 2025, OKX will remain among the top global trading platforms with services such as spot, futures, and DeFi, especially performing strongly in the Asian market.

2. Binance #

Asset Scale: $12.85 billion (continuously growing, solidifying its leading position)
Number of Trading Pairs: 780 (added 38, 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 “giant” in global cryptocurrency trading in 2025. Despite facing scrutiny due to regulatory pressures, Binance attracts over 150 million users with its top-notch technology and user experience. Domestic users need to register via email and use a VPN, making it still the preferred platform.

🔥 Solutions for Accessing OKX Exchange from Within the Country#

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 feels helpless, even leading to doubts about whether the exchange itself has issues. In reality, this is more about the network environment rather than a service interruption from the platform itself. To address this, exchanges like OKX and Binance typically update backup domain names regularly to ensure users can continue to access the official website through alternative addresses.

1. OKX Backup Domain Overseas OKX - Requires VPN or Mirror Site
1. Binance Backup Domain Binance
1. Bitget Backup Domain Bitget
1. Bybit Backup Domain Bybit/Bybitglobal
1. Huobi HTX Backup Domain Huobi (Huobi/HTX)
1. Gate.io Backup Domain Gate.io (Gate)

🔥 Further Reading#

The Latest Ranking of China's Top Ten Virtual Currency Trading Platforms for 2025 is Out 🔥【Worth Collecting】

【Real Stories of Wealth in the Cryptocurrency Space】Many people ask me how I went from 0 to 11 million and then to a debt of 100,000 over the years of trading cryptocurrencies?

🔥 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

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