Why Do Cryptocurrency Exchanges Require KYC Real Name Authentication?#
This article aims to analyze why cryptocurrency trading platforms require real name authentication and whether exchanges will actively sell user identity information after authentication. First, we explore several typical cases.
HSBC was fined $1.9 billion for inadequate anti-money laundering measures. Drug lords in Mexico and Colombia used the bank for money laundering, and HSBC even provided services to terrorist organizations, allowing blacklisted countries like North Korea and Iran to open accounts and trade.
Standard Chartered Bank was also fined $132 million by the UK's Financial Conduct Authority for failing to implement adequate anti-money laundering measures. Criminal groups laundered $265 billion through the bank. Traditional financial institutions must strictly enforce anti-money laundering and identity verification, or they will face hefty fines. Holding a banking license without fulfilling anti-money laundering obligations will inevitably lead to regulatory penalties; this is the core of global business rules: profit must come with corresponding responsibility.
Cryptocurrency exchanges are also connected to the fiat currency system and may be exploited by criminal groups, money laundering organizations, or drug networks. Therefore, exchanges must comply with anti-money laundering (AML) regulations. Failure to comply will result in criminal liability. From the perspective of exchanges, a lack of strict KYC and mobile verification means that if a criminal incident occurs and law enforcement requests information about involved accounts, they will be unable to respond, leading to severe penalties for the exchange. Criminal funds, such as gambling money, are like a disaster for exchanges and must be avoided. For this reason, exchanges mandate all users to undergo identity verification.
Will Cryptocurrency Exchanges Leak Identity Information?#
Exchanges typically do not actively disclose personal information, as such actions are counterproductive. The essence of cryptocurrency exchanges is as platforms for credit accumulation; if they are not trustworthy or secure, users will leave. Therefore, platforms place a high value on their reputation and strive to become long-term trusted service providers. The following cases illustrate this:
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 significantly declined among regulators and the public. From their own interests, exchanges will not actively disclose customer identities; otherwise, damage to their reputation will lead to user loss. However, not actively disclosing does not mean that information cannot be stolen.
- Local operators may monitor SMS content. If users bind their phone numbers to the exchange, operators can identify them as users of that platform and may sell the phone numbers.
- Using malicious free VPNs poses risks. Such VPNs often have backdoors, and the free service is designed to steal real-time data. Once connected, all transmitted data can be monitored and sold by the VPN.
Therefore, as a user of a cryptocurrency exchange, it is essential to strengthen your own network security protection. This explains why trading platforms enforce identity verification. Mainstream platforms are making 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.
These platforms are committed to compliant operations. Choosing licensed platforms in specific countries or regions is more reliable than merely holding a U.S. MSB license (which can be purchased for about $20,000). The aforementioned exchange licenses cannot be directly purchased; local compliance requirements must be met to obtain them.
If you have not yet registered for an OKX or Binance account, it is recommended to register as a priority—
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 from Tim Draper. This legendary investor has previously bet on Hotmail, Baidu, and Tesla, showcasing his keen insight. By 2025, OKX will continue to rank among the top global trading platforms with various 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 (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 regulatory scrutiny, 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.
🔥 Solving the Issue of Inaccessibility to 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 from the platform. To address this situation, exchanges like OKX and Binance typically update alternative domain names regularly to ensure users can continue to access 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 (Zhi Ma Kai Men)
🔥 Related Reading#
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4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com
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