Bitstamp Is Asking Too Many Questions
Slovenian crypto exchange Bitstamp on the whole has a generally positive reputation within the cryptocurrency world. The oldest cryptocurrency exchange in Europe has a daily trading volume of about $1 billion. At first glance, Bitstamp is a shining example of how to properly manage a crypto exchange, and its CEO Nejc Kodrič is known for his business acumen and entrepreneurial skill.
However, it was recently revealed that customers of this exchange has to go through fire, water, and brass pipes in order to complete the identification process on the website. Bitstamp requests screenshots of their other crypto exchange accounts, bank account statements showing fiat deposits in other exchanges, and signed messages from the BTC and ETH addresses which the client plans to use. We already wrote about many problems with the withdrawal of funds from different crypto exchanges, but the title of the organizer of the most sophisticated KYC process goes to Bitstamp without any doubts.
Sure, cryptocurrency exchanges must strictly keep within the laws of their jurisdiction. Government agencies are still suspicious of Bitcoin, and regulators have not been hesitating to close the exchanges that contributed to money laundering or conducted incorrect KYC processes. But the desire to be 'sterile pure' sometimes leads to completely ridiculous situations. Bitstamp is the most graphic example of what is happening.
Against this background, more and more so-called 'decentralized exchanges' appear in the world. One only need an e-mail in order to make an account on these exchanges. No passwords, no passports, no birth sertificates. Just you and your e-mail. Registraion process takes only 5-10 second.