- If you don’t complete KYC before you make a deposit you could be digging yourself into a big hole
- If you complete KYC before you deposit then you know for sure that you can access your funds
- Alternatively, use a Bitcoin ATM that doesn’t have any KYC features on it
Whenever you sign up to an exchange or use any form of fiat on-ramp to the crypto world, you’re more than likely going to have to pass through some form of KYC. Now, a lot of Bitcoin ATMs don’t have any KYC, so if you want to avoid any real issues, these are the way to go.
But, many people are still facing huge issues when they change their fiat into Bitcoin and other cryptos due to KYC. This means that funds are getting stuck and in some cases are lost. So, here’s exactly why you should complete KYC before you even think about sending any of your money over – if you don’t care about privacy.
Your Funds Can’t Get Lost, Stuck or Stolen
Example number one comes from Walmart. If you cast your minds back to 2019, Coinstar and Coinme announced a partnership to launch fiat on-ramps to the crypto world in every Walmart in the USA. However, the KYC process was buggy and the AML process was pure overkill seeing as the machines were mainly used for deposits small than $100. Now, over a year later and these issues are still plaguing the machines. With COVID-19 hampering office numbers, the support team is slower than ever to reply, leaving many in limbo waiting for their money when KYC fails. This is simply due to the fact that you have to deposit your money then complete KYC, with there being no way to reverse the process and get your money back if KYC fails.
This then means that you’ve got to send customer support messages and wait for them to reply. These replies can take a rather long time to reach you, meaning you’re left out of pocket and worried for your money. Some Redditors even believe that the duo are scamming people out of their money as the duo don’t reply to messages.
It’s Just Safer
There are millions of reasons you can fail the KYC checks, ranging from out of date documents and fuzzy photos to server issues and flags on your identity. If you deposit before you’re fully through the KYC stage, which is possible at a number of online exchanges and ATMs around the world, then your money could be locked away behind the KYC wall. And if you have to wait 6 months to renew your ID, you could be a very long time before you get your money back.
Instead, play it safe and complete the KYC process in full to ensure that you never get stuck in this situation. It’s not nice to not have access to your money, so heed our advice and do KYC before you deposit – there’s no sense in rushing!