Privacy Matters: Why there is no KYC verification on PrimeXBT

According to numerous survey conducted over the years, the main issues cryptocurrency exchanges and trading platforms have is security. While Cryptocurrencies are extremely secure, cryptocurrency exchanges have been the targets of numerous hacks and fraudulent acts. The hackers intention: as always, to steal Cryptocurrencies.

As security is the main priority for every exchange and trading platform, their defense systems against hackers have been improving over time. However, many platforms, whether they are centralized or decentralized, have numerous issues and weak points. PrimeXBT’s main goal is to focus on privacy as well as security of the users and their funds.

The Mt. Gox hack

By far the biggest exchange of that time, founded by Jed McAleb and Mark Karpeles, experienced the biggest loss from hacking in the history of Cryptocurrencies. In two incidents which took place in 2011 and 2014, hackers stole a total of 1,350,000 bitcoin. However, most of that amount was traced back to certain accounts, and shortly after retrieved as well, leaving the hackers with a “mere sum” of 200,000 bitcoin which are now confirmed as stolen.

The hacks made such an impact on the market (especially the one in 2014), that they almost single-handedly started a crypto winter. As a result of the hack, Mt. Gox has shut its operations down, leaving disgruntled traders and investors with holes in their pockets.

Besides this incident, there have been many smaller incidents which resulted in short-term downwards spikes in cryptocurrency prices, as well as several thousand of coins stolen. Poloniex, Bitstamp and Bitfinex are just some of the exchanges that got their security breached, and property stolen.

What went wrong?

How could the biggest exchange of that time such as Mt. Gox even be hacked? Clearly, something went wrong. The two main reasons for the downfall of the greatest exchange of that time are:

• Servers without encryption on the data
• Their optimization of hot to cold wallets was extremely poor. The ratio of money stored in hot wallets to cold wallets was enormous.

This is why PrimeXBT has various security measures to ensure that the data is encrypted and safe. Also, only a minimum amount of funds will be stored in the hot wallets.

Privacy information leaks

Another big problem with cryptocurrency platforms is the fact that they require a KYC procedure, which links wallets with the actual user’s identity. This can lead to information leaks. Steven Goldfeder at Princeton University has started a study to show how big of a problem information leaks actually are. He concluded that 53 out of the 130 platforms he conducted his research on leaked critical information to a total of at least 40 separate third parties. The information leaks can lead to serious issues such as identity theft and other fraudulent acts.

Because of the imminent threat of information leaks, PrimeXBT has decided not to require users to submit to the KYC procedure. The absence of this procedure does not affect the user’s security on the platform whatsoever. However, it drastically reduces the time required for registration, and protects the end users from identity theft.

Final word

When it comes to security, PrimeXBT does not compromise. PrimeXBT offers best security measures that ensure safety as well as privacy of the users. The platform has started working on February the 4th, and has already amassed a great user base. Visit the platform at https://primexbt.com/ and trade without having to worry about safety and privacy ever again.