When buying #Bitcoin from a P2P exchange you are sending private payments to individuals, not companies. Your bank does not know what, if anything, you received in return. It could be a debt paid back to a friend, a payment for a new bike, or a gift to a long lost relative.
The point is that there is no paper trail or KYC data showing that you ever purchased #bitcoin
When sending payments to KYC exchanges banks know you are purchasing some form of crypto. These exchanges log your KYC to all used transactions & addresses for a minimum of 7 years.
When sending payments to KYC exchanges banks know you are purchasing some form of crypto. These exchanges log your KYC to all used transactions & addresses for a minimum of 7 years.
It's possible they keep these records forever. CEXs are bound by law to hand over these logs to government agencies whenever requested, it's viable these agencies even have direct feeds into these records. They are also targets of frequent hacks, leading to loss of personal data.
If crypto is ever banned or targeted by government they will know the names & addresses of people to focus on & exactly what transactions they made, similar to the 'harmless' pre-war censuses that gave victims nowhere to hide when a new government had access to those records.
Whichever side of the KYC debate you find yourself on, one thing we should all agree on is that privacy is important. KYC is removing your influence over your own privacy & trusting it to the hands of governments & foreign, realtively new, crypto companies.
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