The specialists believe that young people are currently unaware of how much they expose their privacy. They pointed out that KYC data held by Bitcoin custodians could be more valuable than Bitcoin itself.
Janine Römer and Matt Odell, specialists in Bitcoin (BTC) and privacy, recently talked about know-your-customer (KYC) and anti-money-laundering (AML) policies. They consider that those action plans, which regulated Bitcoin companies apply, are ineffective.
The experts agreed that most users are unaware of the value of the information shared with regulated custodial companies and exchanges. Matt Odell, who has participated in many projects on Bitcoin, privacy, and open source, said KYC data might be more valuable than the cryptocurrency.
Regulated brokers and exchanges that offer Bitcoin services request private data, creating a list that they never delete and is not anonymous. If users do not follow the best privacy practices, the history of future transactions will also be at risk. Even after removing them, criminals can track real-time balances, Odell explained.
The researcher stated that the handling of KYC by exchanges is ineffective in stopping criminals. He highlighted that they could buy or steal that information to make users more vulnerable.
Young People Are Unaware They Share Private Data through the Internet
Janine Römer, a Bitcoin, privacy, and surveillance investigative journalist, believes that the issue is complicated regarding younger generations. Those people growing up now share private data by default, she explained.
People between 15 and 20 years old have not yet realized the degree to which they expose their privacy. They feel safe at home surrounded by four walls and do not know they project onto the world when using the Internet. In addition, they allow the projections of other people into their space, and Römer thinks they have not understood how that affects individuals and society.
She stated that those entering Bitcoin and using an exchange to buy it are unaware of ways to obtain it without risking their privacy. For that reason, those platforms know who their users are, and many of them connect to chain analytics or blockchain analytics services.
The specialists referred to cases in which exchanges close or freeze the accounts of users that use coinjoin services after withdrawing funds. The operators of those platforms can notice that by using blockchain analytics.
Individuals Should Understand that KYC Policies Are Ineffective Against Criminals
Both researchers said that privacy in the digital age consists of individuals understanding they can make their decisions. Odell argued it is about giving consent to provide information and knowing what they are sharing.
Some people can find it overwhelming to try to buy or mine Bitcoin and earn profits on it without using KYC providers. For that reason, Odell recommended limiting the use of those services to just one broker. He warned not to sign up for different services that require taking selfies, scanning driver’s licenses, or putting in all personal information.
Leaks and hacks will be the factors leading to awareness of digital privacy, Matt Odell believes. He said that he hoped users would realize how much information they share and look for tools, resources, and education to improve that situation.
By Alexander Salazar
