Looking for a way to buy, sell, and trade crypto without providing KYC information?
While government agencies all over the world are keeping a close eye on the cryptocurrency ecosystem, there are some exchanges that allow users to transact without KYC.
In this guide, we’ll share everything you need to know about KYC regulations and break down 12 exchanges that allow you to trade crypto with no KYC.
What is KYC?
KYC stands for Know Your Client. This refers to a set of standards and regulations that allow financial institutions to verify a customer’s identity. KYC laws were originally put into place to protect against money laundering and terrorist activity.
Why might someone avoid KYC in crypto?
Crypto investors seek out non-KYC exchanges for several reasons.
Right to privacy: The right to privacy and the importance of anonymity have long been central tenets of the cryptocurrency ecosystem.
Access to more cryptocurrencies: Non-KYC exchanges often have access to newer cryptocurrencies that are not yet available on regulated exchanges.
Don’t want to wait for validation: Validating your identity can take time. Non-KYC exchanges often can offer investors instant access to trades.
Are non-KYC exchanges safe?
In general, non-KYC exchanges are not as safe as their regulated peers.
Non-KYC exchanges often don’t operate with the same consumer protections as their regulated counterparts. In the case of an exchange bankruptcy or shutdown, you may lose access to your funds permanently.
Will the government crack down on non-KYC exchanges?
It’s possible that some of the non-KYC exchanges listed below may change their policies in the future. In 2021, Binance started requiring KYC for all new users after years of pressure from regulators.
In the United States, the 2021 infrastructure bill requires all cryptocurrency brokers to provide 1099 tax reporting information to the IRS. At this time, it’s unclear whether exchanges that don’t collect KYC will be allowed to operate in the US once these rules go into effect in 2024.
Can the IRS track me if I use a non-KYC exchange?
It’s important to remember that the IRS can track your transactions, even if you do use a non-KYC exchange.
Remember, transactions on the blockchain are publicly visible and permanent. In the past, the IRS has worked with contractors like Chainalysis to analyze blockchain transactions and crack down on tax fraud.
Do I have to report transactions from non-KYC exchanges on my tax return?
Even if your exchange doesn’t KYC, you are still legally required to report any income generated from your crypto investing activity on your taxes. Remember, tax evasion is a serious crime with serious consequences. The maximum penalty for tax evasion is a prison sentence of up to 5 years and a fine of $100,000.
In addition, not reporting transactions from non-KYC exchanges can cause issues if you’re using multiple wallets. Consider the following scenario.
If Zack decides not to report his trades from Uniswap, he now has UNI in his Coinbase account with no cost basis and no explanation of how he acquired it. This can cause tax reporting issues if he disposes of his crypto in the future.
12 Non-KYC exchanges
Let’s walk through 12 exchanges that allow users to trade cryptocurrencies without KYC.
KuCoin
KuCoin is a Hong Kong-based exchange that allows users to buy, sell, and trade cryptocurrencies.
At this time, KuCoin allows users to get started with the platform with no KYC. However, there is a withdrawal limit of 1 BTC for unverified accounts.
Kraken
Kraken is a United States-based cryptocurrency exchange founded in 2011. It’s one of the largest and most popular exchanges operating in America.
While Kraken does require some customer information for all accounts, you can start trading without providing information such as your Social Security number and Proof of Residence.
MexC
MexC is a cryptocurrency exchange founded in 2018 and headquartered in Seychelles.
You can get started using the platform with no KYC. However, MecX does require KYC for certain types of transactions, such as crypto-to-crypto and derivative trades.
Changelly
Changelly is a cryptocurrency exchange founded in 2016 and headquartered in the Czech Republic.
You can get started with Changelly simply by providing your email address. You will need to provide more information to unlock more advanced features, such as paying for cryptocurrencies with fiat currencies.
Hodl Hodl
Hodl Hodl is a P2P Bitcoin trading platform. Unlike other exchanges, Hodl Hodl does not hold customer funds. Instead, the platform locks Bitcoin using multisig escrow.
Hodl offers a variety of different payment options for peer-to-peer transactions. This includes bank transfers and in-person payments.
At this time, Hodl Hodl does not require KYC for users.
ByBit
ByBit is a crypto derivatives exchange founded in 2018 and based in Singapore.
At this time, ByBit does not require KYC to create an account. However, the exchange’s withdrawal limit is 2 BTC for accounts with no KYC.
ByBit is not available for customers in the U.S. and the UK. To use the site, you must confirm that you are not from a restricted country.
Pionex
Pionex is a cryptocurrency exchange and crypto trading bots provider founded in 2019 and headquartered in Singapore.
Pionex allows users to make trades and deposits after verifying their SMS and country of residence. The withdrawal limit for this type of basic verification is $2,000.
TradeOgre
TradeOgre is one of the original cryptocurrency exchanges that still operates under the radar.
The exchange allows users to buy and sell cryptocurrencies like Bitcoin as well as privacy-focused coins like Monero. At this time, TradeOgre does not collect KYC information from customers.
ProBit
ProBit is a cryptocurrency exchange founded in 2018 and headquartered in Seychelles.
You can get started trading cryptocurrencies on ProBit with email verification only. The withdrawal limit for accounts with email verification is $5,000, while the withdrawal limit for accounts with full KYC is $500,000.
Uniswap
Uniswap was founded in 2018 by Hayden Adams. Today, Uniswap is one of the world’s biggest decentralized exchanges.
At this time, decentralized exchanges like Uniswap don’t collect customer information. All you have to do to get started is plug in your Ethereum wallet.
SushiSwap
SushiSwap was originally created as a hard fork of the Uniswap protocol in 2020. Today, the protocol has more than $700 million in Total Value Locked.
Like Uniswap, SushiSwap does not require KYC.
dYdX
dYdX is a decentralized exchange founded in 2017 by Antonio Juliano. dYdX allows users to trade cryptocurrencies like ETH and DAI using leverage.
Like other decentralized exchanges, dYdX does not require KYC.
Frequently asked questions
Which crypto exchanges have no KYC?
Exchanges like KuCoin, Changelly, and Pionex currently do not require KYC for customers.
Does Coinbase require KYC?
At this time, Coinbase requires KYC for all customers.
What does no KYC mean in crypto?
If an exchange has ‘no KYC’, they cannot easily verify a customer’s identity.
Can you buy crypto without KYC?
While most exchanges operating in the US require KYC, there are a select few options like KuCoin that allow you to trade crypto without providing personal information.
Is MetaMask non-KYC?
Decentralized wallets like MetaMask do not collect customer information upon sign up.
Frequently asked questions
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