Does your local exchange ask for sender's info for every transaction?

[aioc]

It’s been a while since I used our popular local exchange. I logged in to do transactions and found out that they are implementing a new feature, which complies with the country’s regulator.

Many are not comfortable with this requirement. What if you are transacting with someone here or elsewhere? Would you ask for their real names to meet the requirement?

Do you have a feature like this in your country? Will this attract more users or drive them away to avoid getting flagged?

[PX-Z]

This is probably the country's regulator policy/request to do and it's very annoying, it will be my last transaction to them if i experienced that, regardless if i submitted they needed or not.

Btw, is the transaction p2p (local/international transfer), just from another exchange for transfer your own funds? Or anything.

[aioc]

Btw, is the transaction p2p (local/international transfer), just from another exchange for transfer your own funds? Or anything.

It’s a local peer-to-peer, but it could be anything as long as you can provide the name of the sender or the company, so be sure your sender is aware that you are providing this to an exchange. Yes, it’s so annoying so far; only this exchange is implementing these requirements.
I am not aware of the other exchanges, but I consider this a minus for this local exchange.
I might leave this exchange. I’m exploring other local exchanges because the popular overseas exchanges are still restricted here in our country.

[hugeblack]

If you've already completed KYC, why would they ask you for this information again? It should already be registered.
In general, I don't see a file upload option, so you can enter any information, right?

[_act_]

It is rubbish. What is the benefits of KYC if this question is asked when you want to withdraw your money? I will not be surprised if foreign exchanges are common in your country.

Also why do you need to write some information about the sender? That is not making any sense at all. Even while sending money through banks, we do not input these information.

That is the reason bitcoin price will increase more if bitcoin is scarce. As people are not willing to sell, the price will increase and which will entice some people to sell. So it is not possible that no one will not want to sell his or her bitcoin because as the price increases already, some people are willing to sell. If you go to spot trading, you will see how people are buying and selling bitcoin and see the reason why your question is not possible. There will always be people available to buy and sell bitcoin.

[Despairo]

Will this attract more users or drive them away to avoid getting flagged?

The only way it can attract more users if they give money for every submitting the information.

Fortunately my local exchange "haven't" ask it.

If you've already completed KYC, why would they ask you for this information again? It should already be registered.
In general, I don't see a file upload option, so you can enter any information, right?

It's to make people who haven't KYC dragged to KYC.

Example you never KYC your account, then you send coins to @OP, @OP will ask your information.

I think yeah he can enter any information, unfortunately the problem arise in the future if the exchange/government find suspicious information.

[examplens]

It’s a local peer-to-peer, but it could be anything as long as you can provide the name of the sender or the company, so be sure your sender is aware that you are providing this to an exchange. Yes, it’s so annoying so far; only this exchange is implementing these requirements.
I am not aware of the other exchanges, but I consider this a minus for this local exchange.
I might leave this exchange. I’m exploring other local exchanges because the popular overseas exchanges are still restricted here in our country.

If all local exchanges have introduced a similar requirement, it means that it is a matter of regulation by the government. This is quite possible because the government will always want to have better insight and control over the flow of money.
If others don't have such requirements, then it's clear what you need to do. That's why there is competition.
I left one local exchanger because of additional KYC requirements, which can be quite risky for me.

[coin-investor]

I am fully aware of that because of the post on social media, so I prefer to trade mine with a friend at a significant discount. I like this approach because trading on that popular exchange is too risky. What if you received a considerable amount that was mistakenly sent to you by someone, and you could get yourself flagged by creating a false name?

It’s too risky to have an account in this kind of exchange; they are no different from fiat exchangers like Western Union. Local exchanges can do this to their users because they have no choice. Since top overseas exchanges like Binance are banned from operating here, they are not even accessible.

[Mitchell]

In Europe we have the Travel Rule regulations. It requires companies to provide your personal information to whatever other company you are sending it to. Same thing that bank to bank transfer do under SWIFT. Notabene has a good write up about what exactly it is: What Is the Crypto Travel Rule?

[aioc]

If you've already completed KYC, why would they ask you for this information again? It should already be registered.
In general, I don't see a file upload option, so you can enter any information, right?

It’s not your information that you’re going to provide, but the information of the sender. If it’s coming from your account in another wallet, you can fill in your name.

No, there is no file upload option, but I don’t want to fill in wrong information, as it could have serious repercussions in the future.

[khaled0111]

It’s annoying, indeed, but it’s still part of the AML requirements. All regulated exchanges have to comply with these requirements. It’s just that most of them don’t request this information for every transaction. However, they may, for whatever reason, suspend your account at any time and ask for the source of funds. The information you will need to provide then will not stop at basic details such as the name of the sender. They may even ask about the nature of your relationship with the sender and why he sent you that money..

Many are not comfortable with this requirement. What if you are transacting with someone here or elsewhere? Would you ask for their real names to meet the requirement?

No guarantees that this will work, but you can ask that person to send the coins to your non-custodial wallet then send it to your local exchange.

[BitMaxz]

It is rubbish. What is the benefits of KYC if this question is asked when you want to withdraw your money? I will not be surprised if foreign exchanges are common in your country.

Also why do you need to write some information about the sender? That is not making any sense at all. Even while sending money through banks, we do not input these information.

I think they wanted to gather more sensitive information since this platform he's pointing to experienced a huge loss 2 years ago of around 12m XRP; it should be worth $37m at the current XRP price today.

That's, I think, the reason why their security becomes tighter than before. It's annoying for those regular customers, but I no longer use that platform; their rates are pretty bad, and fees are too expensive.

After they did this, they received a large number of negative reviews in the Play Store, and their ratings dropped. It's obvious people don't want this new feature. Since it is already asking for KYC verification, why would they ask for every transaction you made? It is more likely they don't want their customer to use their platform for crypto; instead, they want them to mainly use it for paying bills.

[PX-Z]

It’s a local peer-to-peer, but it could be anything as long as you can provide the name of the sender or the company, so be sure your sender is aware that you are providing this to an exchange. Yes, it’s so annoying so far; only this exchange is implementing these requirements.
I am not aware of the other exchanges, but I consider this a minus for this local exchange.
I might leave this exchange. I’m exploring other local exchanges because the popular overseas exchanges are still restricted here in our country.

Good thing its a P2P where you can ask or the name of the sender's info is already provided, assuming you are using a platform doing it. Btw is this required in every transaction? AFAIK some foreign exchange did this when a suspicious transfer was done to your account. But based on your screenshot it looks you need to file 2 of the transactions.

[Darker45]

I think you should mention the specific service provider since this is service discussion. I see no reason why we should withhold the name of the exchange. You're talking about Coins.ph, right?

This has been running for years, if I'm not mistaken. I remember I've first encountered this at least a year ago already. It's indeed a while since you last used the service.

But this is only asked whenever you withdraw to an external wallet, right? This isn't asked if the transaction is internal.

In Europe we have the Travel Rule regulations.

This is exactly it. FATF's Travel Rule is also in effect in countries outside Europe, even in those that aren't direct members of the said organization.

[LTU_btc]

Well, in general it's same like making bank transfer. It's not what is Bitcoin about.
But I don't see such thing as big deal. You already went through KYC and using that exchange. Filljng recipient details probably can't makes things worse. And after all, I'm sure that exchange haven't done it to get more your data. They already have enouhh. They simply were forced to do it by regulations.

[aioc]

Good thing its a P2P where you can ask or the name of the sender's info is already provided, assuming you are using a platform doing it. Btw is this required in every transaction? AFAIK some foreign exchange did this when a suspicious transfer was done to your account. But based on your screenshot it looks you need to file 2 of the transactions.

I asked a friend about his transactions, and he, too, was asked to verify the source. I think it’s mandatory for all users of Coins. Now, I mentioned the name of the local exchange and the transactions, which are both personal and come from individuals. If an organisation or a platform is the sender, then you will have to choose the business option.
The first time we received this requirement, we thought the transaction was questionable. We later found out it’s required.

[Lucius]

@aioc, you always have the choice to play by the rules, or to decide you don't want to play that way. Personally, I would not agree to having to enter the recipient's personal data during an outgoing transaction, and I would always choose the option to first send coins to a non-custodial wallet, and then I can do whatever I want with them.

I personally do not use any CEX or any service that requires KYC, and anyone who goes in that direction will find themselves on my blacklist.

[robelneo]

... Filljng recipient details probably can't makes things worse. And after all, I'm sure that exchange haven't done it to get more your data. They already have enouhh. They simply were forced to do it by regulations.

Coins.ph makes it a mandatory requirement; although they are not going to restrict your account for failing to do so, they might question you later. I wonder why it’s a requirement for Coins.ph and not for all the local exchanges. PDAX, another local exchange, has not asked this yet.
When trading in a local exchange, we must read and understand their requirements, as they will differ from those of other overseas exchanges you’ve traded.

[Darker45]

... Filljng recipient details probably can't makes things worse. And after all, I'm sure that exchange haven't done it to get more your data. They already have enouhh. They simply were forced to do it by regulations.

Coins.ph makes it a mandatory requirement; although they are not going to restrict your account for failing to do so, they might question you later. I wonder why it’s a requirement for Coins.ph and not for all the local exchanges. PDAX, another local exchange, has not asked this yet.
When trading in a local exchange, we must read and understand their requirements, as they will differ from those of other overseas exchanges you’ve traded.

What do you mean "they are not going to restrict your account for failing to do so"? Would there be a scenario when a sender fails to do it? As you've mentioned, it's a mandatory requirement. You can't proceed with the transaction if you don't fill in the required information. This isn't optional, at least for external transfers.

Compared to a strictly local PDAX, Coins isn't anymore the local wallet that it used to be. It's now owned by a global firm. It has licenses to operate in different countries in other continents. I guess this is a major factor why it's now strictly compliant with FATF, particularly its travel rule. It's not just the central bank regulations that it abides with.

[The Cryptovator]

It’s not your information that you’re going to provide, but the information of the sender. If it’s coming from your account in another wallet, you can fill in your name.

No, there is no file upload option, but I don’t want to fill in wrong information, as it could have serious repercussions in the future.

I am a bit confused on that point. Am I not the sender when the deal is going from my account? And you haven't cleared the KYC verification of the platform. Have you already verified your account with them? Then your information is already with them, and they could automatically track your information from their data. I am actually not getting what you mean by 'sender'. Do you mean when you are going to buy Bitcoin, then you need to provide the sender name? If so, then how will you know the real sender name?

If you are the sender, meaning you are selling Bitcoin, then the exchange should already have your information. It doesn't ask for every exchange; they should store your information once it has been provided. I am not familiar with this kind of local exchange in my country. I am used to Binance or Bybit P2P exchange, which is pretty easy.