Why Real-Name Authentication is Required for Registering a Cryptocurrency Exchange

Concerns of Users Regarding Identity Verification at Cryptocurrency Exchanges#

Many users feel a strong aversion when they find out that they must complete identity verification after registering with a cryptocurrency exchange. Including myself, I am reluctant to let trading platforms access my identity information—why is facial recognition necessary? The anonymity that cryptocurrencies originally touted seems to be violated. After purchasing tokens on a verified exchange, withdrawal operations may be tracked. In ransomware incidents, hackers publicly disclose Bitcoin wallets to evade tracing, which exacerbates concerns.

If buying and selling Bitcoin through real-name verification, will identity information be leaked? When registering, binding a phone number, ID card, and Google email, will the trading platform sell this data? These questions trouble users: we question the purpose of the platform collecting identities and are more worried about the risks posed by reselling information.

Why Do Cryptocurrency Exchanges Require KYC?#

This article analyzes the reasons cryptocurrency trading platforms implement real-name verification: do they actively sell user information? Let's look at a few cases.

HSBC was fined $1.9 billion for inadequate anti-money laundering measures—Mexican and Colombian drug lords used it for money laundering and even provided services to terrorist organizations and sanctioned countries (like North Korea and Iran). Standard Chartered Bank was similarly fined $132 million by the UK Financial Conduct Authority for failing to prevent criminal groups from laundering $265 billion. Traditional financial institutions must strictly enforce anti-money laundering and identity verification, or face hefty fines. Holding a banking license but failing to fulfill anti-money laundering obligations will inevitably lead to penalties; this is a global rule: profit comes with responsibility.

Cryptocurrency exchanges connect to the fiat currency world and may be exploited by criminal, money laundering, or drug systems, so they must adhere to the AML anti-money laundering framework. Non-compliance will incur criminal liability. From the exchange's perspective: without strict KYC and phone verification, failing to respond to requests for criminal account information from law enforcement will lead to fines. The dirty money of criminal groups brings disaster like flies; exchanges must require all customers to complete identity verification to mitigate risks.

Will Cryptocurrency Exchanges Leak Identity Information?#

Platforms will not actively leak personal information, as it is not worth the risk. Cryptocurrency exchanges are essentially credit accumulation platforms—being untrustworthy or unsafe will drive users away. They value their reputation and aim to become century-old establishments. Take South Korea's largest exchange, Upbit, as an example:

Upbit was investigated for failing to strictly verify 500,000 to 600,000 accounts, leading to a sharp decline in regulatory and public trust. Based on their own interests, exchanges will not actively leak identities—damaging their reputation will disperse users. However, there is a risk of passive leakage:

Local operators may monitor SMS content (such as the phone number bound to the exchange) and sell user data.
Malicious free VPNs often have backdoors that steal real-time device data and resell it—when using such VPNs, all transmitted information is monitored.

As users in the cryptocurrency space, we need to pay attention to cybersecurity. This explains why trading platforms enforce identity verification. Mainstream platforms are making efforts in compliance:

OKX has obtained the first license in Dubai and a license in Singapore.
Binance has received a license in Dubai.
Bitget has invested in the OSL Group (which holds a Hong Kong license).
Bybit has obtained licenses in Dubai and the Netherlands.

These platforms apply for licenses in specific regions and must genuinely meet compliance requirements (not simply purchasing licenses like the US MSB license) to ensure credibility.

If you haven't registered for OKX or Binance, it's recommended to try them first—

1. OKX or Mirror Site #

Asset Scale: $17.1 billion (expected to grow after 2024, reflecting market expansion)
Number of Trading Pairs: 620 (25 new, covering more emerging coins)
24-hour Trading Volume: $16.05 billion (benefiting from global user growth)
Highlights: OKX is operated by OKEX Technology Company Limited and received a million-dollar angel investment from Tim Draper in its early days (who previously invested in Hotmail, Baidu, and Tesla). By 2025, it aims to remain at the forefront globally with services like spot trading, contracts, and DeFi, showing strong performance in the Asian market.

2. Binance #

Asset Scale: $12.85 billion (continuously growing, solidifying its leading position)
Number of Trading Pairs: 780 (38 new, closely following market trends)
24-hour Trading Volume: $19.025 billion (record high trading volume)
Highlights: Founded by Changpeng Zhao (CZ), Binance remains a global cryptocurrency "giant" in 2025. Although it has faced regulatory pressure, its top-notch technology and user experience attract over 150 million users. Domestic users need to register with an email and use a VPN.

Limited-Time Benefit—New Users Register to Receive a Minimum of 20+ U Bitcoin Blind Box 🎁#

🎁 Register on mainstream exchanges like OKX, Binance, Huobi, Bitget, Bybit, Gate, Backpack, etc., and bookmark all mainstream exchanges' latest anti-loss domain names on one page 👉🏻: https://mlink.cc

🔥 Solutions for Accessing OKX, Binance, Huobi, and Other Exchanges in Mainland China#

The original domain names of exchanges are often restricted or slow to access due to overseas servers, not due to platform service interruptions. To address this, platforms regularly update backup domain names. Can't open the link? Try the domestic mirror line 👉🏻 OKX Domestic Backup Domain Line Without VPN or Proxy

1. OKX Backup Domain Overseas OKX - Requires VPN or Mirror Site
1. Binance Backup Domain Binance
1. Bitget Backup Domain Bitget
1. Bybit Backup Domain Bybit/Bybitglobal
1. Huobi HTX Backup Domain Huobi/HTX
1. Gate Backup Domain Gate.io

🔥 Further Reading#

2025 China's Top Ten Virtual Currency Trading Platforms Latest Rankings Are Out 🔥【Worth Collecting】
【Real Stories of Getting Rich in the Crypto Space】Many people ask me how I went from 0 to 11 million and then to a debt of 100,000 after years of trading cryptocurrencies.

🔥 Useful Tools for Alpha Finding#

1️⃣ Axiom Dog-Charging Tool https://axiom.trade
2️⃣ Gmgn Dog-Charging Tool https://gmgn.ai
3️⃣ dbot Dog-Charging Tool https://app.debot.ai
4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com

欧易华语社区