According to an announcement made in a blog post on 20th February, the Cryptocurrency wallet, MyEtherWallet (MEW), has collaborated with Bity, crypto finance firm to establish a platform which would enable users to convert cryptocurrency to fiat without going through the process of Know Your Customer (KYC).
The announcement reveals that presently all the users of the MEW V5 wallet are able to exchange up to 5,000 Swiss Francs ($4,995) worth Bitcoin (BTC) and Ethereum (ETH) to euros and Swiss francs without providing the details needed as per KYC that exist within the wallet. By this, the process would consume less time and would become simple to use thereby allowing a user to execute the exchange process from any place.
The company wrote “Bity is able to offer this KYC-less Exit-to-Fiat gateway because it is compliant with the Swiss Anti Money Laundering Ordinance (AMLA). Bity is a regulated and audited financial intermediary within Switzerland.”
The blog post reads, “Having taken an active part in the Ethereum ecosystem and the cryptocurrency space for some years, we believe that mass adoption, market stability, and advanced scaling solutions will eventually make it possible to conduct all financial transactions — from paying for the proverbial coffee to buying a home — entirely in crypto. Until then, the option of a painless exit to fiat currencies will remain a high priority for many crypto users. At the moment, crypto exchanges are the main gatekeepers between crypto and traditional finance, and the quality of user experience on these platforms varies greatly. Sometimes, the number of “hoops” to jump through in order to comply with KYC and AML requirements can frustrate experienced crypto investors and entirely deter the most enthusiastic crypto beginners.”
The process laid down for KYC, allows organizations to scrutinize the identity of their respective customers either prior to any transaction or while dealing with them. Further, businesses can check the information of their client whether on if they are involved in any illegal activities such as money laundering or corruption.
Customers would be required to choose the target digital and fiat currencies within the wallet dashboard to avail the features of “Exit-to-Fiat” option. Also, would be required to give their details that include a phone number, banking details, official name of their bank account, and the billing address for compliance purposes.
There is always a requirement of an improved privacy and secrecy of cryptocurrencies which assists the government department to encounter the activities related to illicit purposes such as money laundering. During the previous month, the Cyberspace Administration of China (CAC) had established the latest regulations for all the existing blockchain firms which are operating within the country.
The CAC guidelines need all the blockchain start-ups to enable authorities’ to access the stored data and to commence registry measures that would necessitate few details such as ID card or mobile numbers from its users. By doing this they would be able to supervise content and censor information which is forbidden under current Chinese law.
In last April, Amazon Technologies, Inc. had got a copyright for a streaming data marketplace that would allow merging multiple data sources which would further enable to track down the actual time of cryptocurrency transactions and the respective users who are involved in such operations. This process would ultimately lead to the de-anonymization of transactions that involve Bitcoin, Ethereum or any other non-privacy cryptocurrency