Key Takeaways
- KYC-free crypto exchanges often have a faster and easier signup process, and this can also be beneficial for people with limited access to traditional identification documents.
- In regions with less stringent regulations, KYC might not be mandatory, allowing these exchanges to operate.
- However, without KYC, exchanges have a harder time identifying and stopping bad actors, and this can make them more susceptible to money laundering, illegal activities, and scams.
What Are Non-KYC Crypto Exchanges?
Non-KYC crypto exchanges allow you to trade cryptocurrency without going through a “Know Your Customer” verification process.
KYC is a set of regulations that require financial institutions to identify their customers. This is done to prevent money laundering, fraud, and other financial crimes.
Even though transactions on KYC-free crypto exchanges might be anonymous, the blockchain itself is a public ledger. Anyone can view the transaction details, including the wallet addresses involved, by utilizing a blockchain explorer.
The Risks Of Using KYC-Free Crypto Exchanges
Non-KYC exchanges may be a good option for those who prioritize privacy, but it is important to be aware of the security risks and limitations:
- Increased Scams and Fraud – Without KYC, scammers can easily operate on the platform. This can lead to fake listings, pump-and-dump schemes, and exit scams, in which the exchange disappears with user funds.
- Money Laundering – The lack of user verification makes KYC-free exchanges attractive for bad actors who want to launder money or finance illegal activities.
- Low Liquidity and Market Manipulation – KYC exchanges tend to have a larger user base and higher trading volume, leading to more liquidity.
- Limited Customer Support – Non-KYC exchanges might offer limited or non-existent customer support, leaving you with nowhere to turn if you encounter problems.
- Transparency Concerns – KYC-free exchanges may not be transparent about their finances or how they operate.
Benefits Of Using KYC-Free Crypto Exchanges
Non-KYC crypto exchanges also offer a few advantages to attract potential users as well:
- Privacy and Anonymity – Many people’s biggest draw is the ability to trade cryptocurrencies without revealing their identity.
- Speed and Efficiency – No KYC verification means a faster signup process. You can potentially be trading within minutes of finding the exchange.
- Accessibility – Non-KYC exchanges may be easier to access for people who lack traditional identification documents or who live in countries where obtaining them is difficult.
While KYC-free exchanges offer privacy and faster signup, it is still important to consider the benefits against the drawbacks before using one.
In no particular order, here are the best non-KYC cryptocurrency exchanges for 2024:
MEXC
MEXC is one of the biggest exchanges in terms of trading volume. The exchange has over 2,000 altcoins and the lowest trading fees, with 0% Maker and Taker fees for Spot trading.
They also provide categories you can trade with and usually list new tokens very regularly. So, if you want to trade whatever is hot at the moment or get access to the most cryptos, MEXC can offer that.
MEXC does not require KYC for basic account creation and has the highest withdrawals (around 30 BTC every 24 hours) without verification.
BloFin
BloFin is an up-and-coming exchange that launched in January 2023. It is a crypto trading futures platform with over 200 USDT perpetual contracts to trade.
The company behind the exchange, also called BloFin, was established in 2018. Since then, they have been recognized by top global investment institutions including SIG, Matrix Partners, KuCoin, Fenbushi Capital, and Draper Dragon.
This exchange is popular for users because it does not require KYC and allows non-KYC users to withdraw a maximum of $20,000 per day. The exchange is also available worldwide without using a VPN.
BingX
BingX is a crypto exchange platform with over 10 million users and the largest trading volume on this list.
The exchange has its own proof of reserves, an insurance fund (although they did not say how much it is), and some big partnerships, like the partnership with Chelsea Football Club. Furthermore, the platform has never had any hacks or lost any funds.
Users are able to begin utilizing the platform immediately without undergoing verification. However, unverified accounts are subjected to withdrawal limits of up to $50,000 within a 24-hour timeframe. But if you want a reputable platform with lots of altcoins and competitive fees, then BingX is the right exchange for you.
CoinCatch
Are you looking for a brand new crypto exchange to trade, dollar cost average (DCA), copy trade, or trade crypto futures? Then this exchange might be the one you are looking for.
CoinCatch is a crypto exchange platform powered by a secure and transparent system and has no geographical restrictions. The exchange does not impose VPN constraints and is accessible to users worldwide, including those in the United States and Canada.
The platform lets you enjoy basic trading features like buying, selling, and moving your crypto around freely without needing KYC verification. However, users will need to complete the KYC process to make larger withdrawals exceeding 2 BTC daily.
BYDFi
If you are searching for the best non-KYC, non-VPN crypto exchange, you might also want to consider BYDFi.
Currently, they are allowing users from the US, Canada, and anywhere in the world to sign up on the platform without needing a VPN, making it really easy to use if you want to trade cryptocurrencies and more.
The exchange offers over 450 cryptocurrencies in spot and 180 cryptocurrencies in futures that you can trade, with up to 200x leverage. BYDFi also has pretty decent trading fees; it starts at 0.1% on spot trading fees, but it does go up to 0.3% on smaller altcoins. Additionally, futures trading fees are kind of the middle of the pack with other exchanges.
Final Thoughts
It is important to note that when a crypto exchange is new, the unique selling point nowadays is that there is no KYC required. But when they grow big enough, they often start requiring obligatory KYC processes.
Additionally, beginners do not often realize that some specific financial products may require KYC even though you can buy and sell BTC, ETH, and other cryptocurrencies without verification. In other words, users may stick to simply buying crypto and avoid their other financial features that might require verification.
