Home News Exchange Crypto Exchange Changelly May Withhold Users’ Cryptocurrencies in case of Incomplete KYC

Crypto Exchange Changelly May Withhold Users’ Cryptocurrencies in case of Incomplete KYC

September 05, 2018 12:39
Share with your friends

Cryptocurrency exchange Changelly has found itself in the middle of a controversy. In April, this year, a Reddit user wrote a post on the portal warning people to stay away from the exchange, as it would “steal millions.”

In the post the user had said, “For the past few days Changelly has implemented new draconian KYC and AML rules that extort users into sending personal information or lose their money (good profit for changelly). There are posts all over Reddit about this. Not only do they not allow you to cancel your transaction (like XAPO etc all over exchanges) after you send in your documents it will take weeks if not forever for verification. This is 100% money grabbing scheme. They do not warn users about the document requirements before you do the transaction.”


The user, then was advised, by other users to never trust an exchange. Seconding the opinion, another user said, “Yup. Completely stopped trading because 1. its just gambling, and 2. exchange owners are all mother fuckers. Buy eth and trade on ED if you NEED to gamble with shitcoins.”

The issue did not die with that. On Wednesday, a user on Twitter said, “Careful with Changelly and privacy coins. They will require KYC documents after you have sent the trade, and then refuse to refund you if the KYC docs “are not up to par.” So I would prefer Shapeshift’s approach of being upfront about KYC over Changelly’s tactics.”

Responding to that, the exchange said, “Hey! We always warn users about the possibility of KYC, especially for untraceable coins. And ask to check the box on agreement with our AML policy before any deposit. It was implemented a long time ago. Unfortunately people are still regularly trying to launder funds.”

The exchange (or someone from the exchange) also posted a clarification on Reddit under the original thread stating their reasons for the same. The statement said, “We know that all this KYC stuff contradicts to the initial idea of anonymity in the crypto world. Frankly, we are not happy with this outcome, as well. Anyway, since we are located in the EU, we are forced to implement this procedure. We really understand your frustration and do believe that these are your entire life savings. Once you prove that, we will exchange your coins immediately, with no hesitation. As of now, we didn’t even receive any info from you. Moreover, we don’t even know your name. So how do we know if your life savings are not obtained from a scammy ICO or something?”

Elaborating it said, “We were trying to keep everything as it was but enormous quantity of scammy ICO and other fraud activities forced us to implement KYC along with other cryptocurrency exchanges. Just like any other exchange, we do have official location and representatives – you can look up our Twitter for this info. For some scammers, Changelly may seem to be an easy means for money laundering due to its simplicity. Also, since our code is publicly available on GitHub, the main concern is that not only good guys can use it but scammers as well. That’s why we must be sure that huge amounts converting to Monero are not stolen.”

Liked what you read? Join us on Telegram

A blockchain enthusiast, a wannabe-crypto investor and an all-around enthusiast! Loves travelling, especially to ASI-protected areas, believes in giving her best shot at everything she does! Definitely an introvert.


Please enter your comment!
Please enter your name here