Why do exchanges need KYC? Will it leak?

In fact, for ordinary users, it is more risky not to do it, because bad guys can use OTC to get all the black money into the currency circle, and finally you will receive a hand of black money when you withdraw money, and your card will be frozen.

Of course, due to the delay problem, even if there are such restrictions at present, there will still be black money coming in, and some people's withdrawals will be frozen, but because they are all separated by many hands, it has little to do with you in the end, and it will be solved after the case is closed.

If you receive black money directly, it is likely to involve helping letters, especially since a judicial interpretation was issued some time ago, using virtual currency to launder money is regarded as a type of money laundering crime, so it is more serious now.

In addition, if you are a restricted user, an organization or individual in a sanctioned area, your assets may be frozen.

CEX is still centralized after all, especially because of its offshore nature, it lacks government relations for taxation, and often has to face supervision directly, which is very fragile.