Crypto investors can now convert their crypto holdings to fiat without the need of Know Your Customers [KYC] requirement on a new platform. The platform was initiated through the collaboration of cryptocurrency wallet, MyEtherWallet (MEW) and a crypto finance firm, Bity as reported recently.
Eliminating KYC Requirement On Exchanges
In a statement released, MyEtherWallet (MEW) noted that its users, of MEW V5 wallet can now exchange up to 5,000 Swiss Francs ($4,995) worth of Bitcoin (BTC) and Ethereum (ETH) cryptocurrencies to Euros and Swiss Francs without going through KYC requirements inside the wallet. The exchange will be possible from any part of the world.
MEW will be utilising the Bity’s fiat to crypto gateway from any part of the world. Bity is a fully regulated brokerage company based in Switzerland. It provides basic financial services for clients all over the world, and it also operates a network of crypto ATMs across five cities in Switzerland.
For the MyEtherWallet (MEW) users to access this service known as “Exit-to-Fiat”, they will have to choose the virtual currencies and fiat currencies in the wallet’s dashboard. Afterwards, they will provide details such as bank details, phone number, the official name of their bank account, and the billing address for compliance purpose, but is not stored by MEW as stated in the release.
Crypto Users and Privacy
Cryptocurrency adoption in recent time has been aided more by the privacy it offers to its users. Transactions on the blockchain network are usually indicated with wallet identity which is composed of 32 alphanumeric characters and four dashes. This hides the identity of crypto users.
The use of the KYC procedure enables firms to verify the identity of their customers before or during dealing with them. Also, this helps to distinguish the type of transaction being carried out by a customer, if it is an illegal activity.
Also, the KYC procedure was introduced because the government want to eliminate illegal activity from the platform and also a means to tax on crypto holdings.
Recently, the Cyberspace Administration of China (CAC) introduced new regulations for blockchain firms that are operating in the country. The CAC guidelines require blockchain startups to allow authorities access to stored data and to introduce registry procedures that would require ID card or mobile numbers from its users.