Why is real-name authentication required for registering on cryptocurrency exchanges?

User Concerns About Identity Verification at Cryptocurrency Exchanges#

Many users feel strong aversion when they find out that they must complete identity verification upon registering at cryptocurrency exchanges. Including myself, I am reluctant to let trading platforms access my identity information—why is facial recognition necessary? The anonymity that cryptocurrencies originally touted seems to be violated. After purchasing tokens on a real-name exchange, withdrawal operations may be tracked. In ransomware incidents, hackers publicly disclosed Bitcoin wallets to evade tracing, which intensified concerns.

If I buy and sell Bitcoin through real-name verification, will my identity information be leaked? When registering, if I bind my phone number, ID card, and Google email, will the trading platform sell this data? These questions trouble users: we question the purpose of the platform collecting identities and are more worried about the risks posed by reselling information.

Why Do Cryptocurrency Exchanges Require KYC?#

This article analyzes the reasons cryptocurrency trading platforms implement real-name verification: do they actively sell user information? Let's look at a few cases.

HSBC was fined $1.9 billion for insufficient anti-money laundering measures—Mexican and Colombian drug lords used it for money laundering and even provided services to terrorist organizations and blacklisted countries (such as North Korea and Iran). Standard Chartered Bank was similarly fined $132 million by the UK's Financial Conduct Authority for failing to stop criminal groups from laundering $265 billion. Traditional financial institutions must strictly enforce anti-money laundering and identity verification, or face hefty fines. Holding a banking license but failing to fulfill anti-money laundering obligations will inevitably lead to penalties from regulatory bodies; this is a global rule: profit comes with responsibility.

Cryptocurrency exchanges connect to the fiat currency world and may be exploited by criminal, money laundering, or drug systems, thus they must adhere to the AML anti-money laundering framework. Non-compliance will incur criminal liability. From the exchange's perspective: without strict KYC and phone verification, failing to respond when criminal authorities request information on criminal accounts can lead to fines. The dirty money of criminal groups brings trouble like flies; exchanges must require all customers to complete identity verification to mitigate risks.

Will Cryptocurrency Exchanges Leak Identity Information?#

Platforms will not actively leak personal information, as it is not worth the loss. The essence of cryptocurrency exchanges is to accumulate trust—being untrustworthy or unsafe will drive away users. They value their reputation and aim to become century-old establishments. Take South Korea's largest exchange, Upbit, as an example:

Upbit was investigated for failing to strictly verify 500,000 to 600,000 accounts, leading to a sharp decline in regulatory and public trust. Based on their own interests, exchanges will not actively leak identities—damaging their reputation will disperse users. However, there is a risk of passive leakage:

Local operators may detect SMS content (such as the phone number bound to the exchange) and sell user data.
Malicious free VPNs often have backdoors that steal real-time device data and resell it—when using such VPNs, all transmitted information is monitored.

As users in the cryptocurrency space, we need to pay attention to cybersecurity. This explains the reason for trading platforms' mandatory identity verification. Mainstream platforms are making efforts in compliance:

OKX obtained the first license in Dubai and a license in Singapore.
Binance obtained a license in Dubai.
Bitget invested in the OSL Group (which holds a Hong Kong license).
Bybit obtained licenses in Dubai and the Netherlands.

These platforms apply for licenses in specific regions and must genuinely meet compliance requirements (not simply purchasing, like the US MSB license) to ensure credibility.

If you haven't registered for OKX or Binance, it's recommended to try them first—

1. OKX or Alternative Link #

Asset Size: $17.1 billion (expected to grow after 2024, reflecting market expansion)
Number of Trading Pairs: 620 (added 25, 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, which received a million-dollar angel investment from Tim Draper in its early days (who previously invested in Hotmail, Baidu, and Tesla). By 2025, it aims to remain at the forefront globally with services like spot trading, contracts, and DeFi, showing strong performance in the Asian market.

2. Binance #

Asset Size: $12.85 billion (continuously growing, solidifying its leading position)
Number of Trading Pairs: 780 (added 38, keeping up with market trends)
24-Hour Trading Volume: $19.025 billion (record high trading volume)
Highlights: Founded by Changpeng Zhao (CZ), Binance remains a global cryptocurrency giant in 2025. Although it has faced regulatory pressure, its top-notch technology and user experience attract over 150 million users. Domestic users need to register with an email and use a VPN.

Limited-Time Benefits—New Users Register to Receive a Minimum of 20+ U Bitcoin Blind Box 🎁#

🎁 Register at OKX, Binance, Huobi, Bitget, Bybit, Gate, Backpack, and other mainstream exchanges, and bookmark all mainstream exchanges' latest loss prevention domain names on one page 👉🏻: https://mlink.cc

🔥 Solutions for Accessing OKX, Binance, Huobi, and Other Exchanges from Mainland China#

Original domain names of exchanges are often restricted or slow to access due to overseas servers, not due to platform service interruptions. To address this, platforms regularly update alternative domain names. Can't open the link? Try domestic mirror lines 👉🏻 OKX Domestic Alternative Domain Line Without VPN or Proxy

1. OKX Alternative Domain Overseas OKX - Requires VPN or Alternative Link
1. Binance Alternative Domain Binance
1. Bitget Alternative Domain Bitget
1. Bybit Alternative Domain Bybit/Bybitglobal
1. Huobi HTX Alternative Domain Huobi
1. Gate Alternative Domain Gate.io

🔥 Further Reading#

2025 China's Top Ten Virtual Currency Trading Platforms Latest Ranking is Out 🔥【Worth Bookmarking】
【Real Stories of Getting Rich in the Crypto Space】Many people ask me, after years of trading, how did I go from 0 to 11 million and then to a debt of 100,000?

🔥 Useful Tools for Alpha Finding#

1️⃣ Axiom Dog-Charging Tool https://axiom.trade
2️⃣ Gmgn Dog-Charging Tool https://gmgn.ai
3️⃣ dbot Dog-Charging Tool https://app.debot.ai
4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com

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