One of the most common ways to increase privacy when transacting in cryptocurrencies is using peer-to-peer (P2P) platforms that do not require KYC information, such as the newly launched platform by Bitcoin.com. Over 22,000 people have signed up for Local.Bitcoin.com which “does not require you to identify yourself and you’re free to accept any of the payment methods listed on the site,” It further details how users can stay safe when using P2P platforms in addition to staying “completely anonymous.”
BCH users can also use Cashshuffle which allows them “to shuffle their coins with other users so it’s almost impossible to tie the bitcoin cash to a certain person,” the video describes. It also details the use of Tor and VPN to enhance privacy.
Further, bitcoin ATMs that do not require KYC can be used for private transactions. “Bitcoin ATMs are popping up all over the world. It’s likely that there are several within a few miles of you,” the video notes, adding that anyone can find one using this tool.
Increased Global KYC Efforts
Many countries and cryptocurrency exchanges could be getting more serious about their KYC measures. The Financial Action Task Force (FATF), the global money-laundering watchdog, released its guidance for virtual assets and virtual asset service providers last week. It recognizes:
The virtual asset ecosystem has seen the rise of anonymity-enhanced cryptocurrencies (AECs), mixers and tumblers, decentralized platforms and exchanges, and other types of products and services that enable or allow for reduced transparency and increased obfuscation of financial flows.
The FATF also acknowledged that new methods continue to emerge “including the increasing use of virtual-to-virtual layering schemes that attempt to further obfuscate transactions in a comparatively easy, cheap, and secure manner.”
The organization subsequently calls on all countries and crypto exchanges to strengthen their measures against products and services that could undermine an exchange’s “ability to know its customers and implement effective customer due diligence.” However, its recommendations are not laws and not binding since each country may choose to implement any or none of the guidelines.