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 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. 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 but failing to fulfill anti-money laundering obligations will inevitably lead to penalties from regulators; this is the core of global business rules: profit comes with corresponding responsibilities.
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 exchange's perspective, lacking strict KYC and mobile verification means that if a criminal incident occurs and law enforcement requests account information related to the case, the exchange will be unable to respond, leading to severe penalties. Criminal funds, such as gambling proceeds, 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 leak personal information, as such actions would be counterproductive. The essence of a cryptocurrency exchange is a platform for accumulating trust; if it is untrustworthy or unsafe, users will leave. Therefore, the platform places a high value on its reputation and strives to become a long-term trusted service provider. The following case illustrates this:
South Korea's largest exchange, Upbit, was investigated for failing to implement strict identity verification on 500,000 to 600,000 accounts. Following the incident, the trust of regulators and the public in the exchange significantly declined. From its own interests, the exchange will not actively leak customer identities; otherwise, damage to its reputation would lead to user loss. However, not actively leaking 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 free services are 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 necessary to strengthen personal cybersecurity. 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 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 a licensed platform 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 Mirror Site#
- 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 led by Tim Draper. This legendary investor has previously bet on Hotmail, Baidu, and Tesla, showcasing keen insight. In 2025, OKX will firmly sit 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, consolidating 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 "giant" in global cryptocurrency trading in 2025. Despite facing regulatory scrutiny, Binance attracts over 150 million users with top-notch technology and user experience. Domestic users need to register via email and use a VPN, but it remains 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 overseas servers. For ordinary users, this situation often feels overwhelming, leading to doubts about whether the exchange itself is experiencing issues. In reality, this is more about the network environment 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 accessing the official site through alternative addresses.
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- OKX Backup Domain Overseas OKX - Requires VPN or Mirror Site
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- Binance Backup Domain Binance
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- Bitget Backup Domain Bitget
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- Bybit Backup Domain Bybit/Bybitglobal
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- Huobi HTX Backup Domain Huobi (Huobi/HTX)
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- Gate.io Backup Domain Gate.io (Gate)
🔥 Related Reading#
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4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com
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