Popular cryptocurrency wallet MyEtherWallet (MEW) has collaborated with Bity, a crypto finance company, to create a platform that allows users to convert cryptocurrencies to fiat without having to abide by Know Your Customer (KYC) requirements. The company announced the news in a February 20 blog post, saying that MyEtherWallet users will now be able to exchange up to 5,000 Swiss Francs, or just under $5000 worth of Bitcoin (BTC) and Ethereum (ETH).
The cryptocurrencies can be exchanged to euros and Swiss francs without having to go through extensive KYC requirements. The platform will also enable users from all over the world to convert and withdraw money, the company said.
In order to use the platform’s “Exit-to-Fiat” option, customers will have to choose the target digital and fiat currencies in the wallet dashboard. Providing personal data will still be required, though, as the users will be asked to provide their phone number, banking details, official name on their bank account, and the billing address needed for compliance purposes.
The Know-Your-Customer protocol has become a requirement both in traditional finance and in newer fintech companies. The procedure enables organizations to verify the identity of their customers in order to asses whether they were involved in illegal activities such as money laundering.
Bity is a fully regulated and audited brokerage company based in Switzerland, which operates a network of crypto ATMs across five cities in Switzerland, MEW said in the release. The company said that Bity is able to offer this kind of KYC-less Exit-to-Fiat gateway because it is compliant with the Swiss Anti Money Laundering Ordinance (AMLA).
And while the announcement was welcomed by most members of the crypto community, especially those more privacy-savvy, exchanges and wallets alike have been fighting a losing battle with regulation.
Governments worldwide link the privacy and anonymity of cryptocurrencies with illegal activities such as money laundering, theft, and corruption. Back in 2018, Amazon patented a streaming data marketplace that enables real-time tracking of cryptocurrency transactions and the users involved. Last month, the Cyberspace Administration of China (CAC) introduced new, stricter regulations requiring blockchain companies to disclose their users’ personal data.