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cex.io warning
#1
Exclamation 
Cex.io is providing a nice service for converting fiat to crypto and vice versa. You go through the usual KYC and start trading. After a while when the amounts become "significant" they will ask you for the source of your funds, your salary and much more private information!! It's crazy. Bitstamp also went crazy like this. This crazy friction between fiat and crypto is really harmful for the further growth of crypto use.


"We are texting you in regards to your query about our data security approach. We apologize for such a delay in responding to your request.

As you were informed previously, in order to provide you with our services in full accordance with AML/KYC policies we need to clarify the initial sources of your funds. For this reason, we collect a certain set of information and documents regarding your activity. Our request is a standard procedure that is obligatory for all our customers at some point. We understand that this process may be inconvenient for some users.

Security of your personal information is a top priority for us. We have built a trustful platform employing the latest technologies which help us to store your personal data in a safe and protected way.

Be kindly informed that we are fully committed to ensure compliance with GDPR requirements to protect the personal data of our Users. 

Please note that we have implemented necessary technical and organizational measures to provide the security of your data and save it from loss, misuse, alteration or destruction. For instance, such measures include encryption, 2FA, access control, regular testing of our systems resilience etc. Assessment of our systems resilience is carried out on a regular basis.

 Moreover, with respect to data security, CEX.IO is fully compliant with PCI DSS, which is an information security standard designated for merchants, financial institutions and payment service providers in order to ensure the safety of cardholders' data. You can check our certificate of compliance here. PCI DSS certificate of compliance is issued by the independent auditors on the basis of annual audit we carry out. Moreover, our payment system providers are PCI DSS compliant as well. 

Only authorized personnel of CEX.IO has access to your personal information, and this personnel is required to treat the information as confidential. 

If you want to learn more about how we process your personal data and for which purposes it may be collected, shared and stored you may refer to our Privacy Policy

As for your question regarding account closure, please be informed that since your account has financial history, we reserve the right to maintain your data to protect our legitimate interest and comply with legal obligations, as provided by Article 6(1)© and Article 6(1)(f) of the General Data Protection Regulations. 

In case you decide to delete your CEX.IO account, we will retain your personal data for six (6) years after the account closure. This is the period during which you may bring legal claims against us and we are required to keep accounting records under the law of the UK. Upon expiration of this period we will erase your personal data.

Nevertheless, access to your data will be limited on a "need-to-know" basis, which means that the access will have only those who need this data for compliance, legal and accounting purposes.
Best regards,
Dana Fox
Compliance Department
CEX.IO"


"Please be informed, that currently, there are still a few things we would kindly ask you to clarify.

To be more specific, I have compiled a short list for your convenience:

  1. Please find attached a form, that we ask to be downloaded, filled and signed;

  2. We have to confirm the origin of your funds and to trace the movement of funds to your CEX.IO account, therefore, please describe the sources of both your crypto and fiat funds. Please make sure there are documents/screenshots that may confirm your words. For instance: your fiat source of funds may be confirmed by a bank statement that represents your salary or other incomes; as for crypto funds - screenshots from other platforms that show how you bought the crypto should be provided.
If there is anything else you would like us to clarify for you - let me know.
Kind regards,
Borys Hill
Compliance Support Specialist
CEX.IO"



"Thank you for your reply.



Please be informed, that as it is stated in the email sent on the 17th of June 2018:



"Your account is verified, but in order to proceed with further operations on CEX.IO, we need to comply with requirements of AML/KYC policies, and collect a certain set of information and documents to confirm user's identity and source of funds deposited to CEX.IO."



Also, please note, that verification of your account and AML/KYC procedure are two different operations. We do realize that it may look like the AML/KYC procedure stands in direct contradiction to two of the most important aspects of cryptocurrency – privacy and disintermediation. However, in the current era of regulatory enforcement, it is impossible for us not to comply with international and domestic regulations, as we've seen the alternative to no regulation firsthand, when blockchain came to be associated with criminal activity, and what that means for blockchain companies.



At CEX.IO, we believe that AML/KYC policies would help to improve the community and dispel misconceptions about bitcoin and cryptocurrency. That is why we've developed certain procedures that can help us to stay in compliance with regulations and provide reliable service to our users.



I would like to note that this is a general procedure and usually, the whole process is simple and can be completed in a few letters of correspondence between the user and our Compliance department.



Additionally, I would like to emphasize, that we have not had any loss, misuse, alteration or destruction of users' data ever. Therefore, please be assured, your private data is absolutely safe.



Nevertheless, I have to note, that if you do not want to provide us with the information described in our previous emails (and this is your right), we will not be able to process your further deposit transactions and provide the full scope of our service.


I sincerely hope for your cooperation."

"Thank you for your answer.



Let me explain our information requests. You have agreed on CEX.IO’s Privacy Policy (https://cex.io/privacy) within the registration process on our Platform. According to this Privacy Policy: “Based on our legal obligations and legitimate interest we may request other documents for your identity verification and the sources of your funds confirmation for the purposes of money laundering and fraud prevention. To get more information about it please review our AML/KYC and Anti-Fraud policies.”



Also, according to CEX.IO’s Terms of Use (https://cex.io/terms) by accepting these Terms of Use, the User agrees with and accepts all the policies published on the Site (https://cex.io). So, we believe that you are acknowledged with all these Policies and CEX.IO Ltd has warned you in advance about the possibility of such requests regarding your funds' origin confirmation.



Moreover, in accordance with article 1.1 of CEX.IO’s AML Policy CEX.IO reserves the right to request up-to-date documents from the Users, even though they have passed identity verification in the past. Therefore, we believe that our requests are fully legal.



I hope that I have clarified these provisions and the standard character of this procedure.



Therefore, please let us know whether you are willing to continue further cooperation.



If you have any additional questions, please do not hesitate to contact us.
Thank you for your understanding. "
Cardano is the most promising 3 gen. crypto right now.


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#2
PCI DSS checks - I think that they are a rip off and a money generator for 3rd parties. I spent close to a whole morning checking and updating our annual check and we have one of the simplest systems there are.

Anyway, this post highlights a market opportunity - a good quality trustworthy exchange that does not go down this route will be a winner.
Reply
#3
(2019-01-23, 11:43 AM)BobBobert Wrote: PCI DSS checks - I think that they are a rip off and a money generator for 3rd parties.  I spent close to a whole morning checking and updating our annual check and we have one of the simplest systems there are.

Anyway, this post highlights a market opportunity - a good quality trustworthy exchange that does not go down this route will be a winner.

Yes it's too much. All this crazy regulation is too much. Any European country is regulated so if a mysterious money transaction goes to your bank account it will be flagged for investigation. I therefore see no need at all why some of the exchanges like Cex.io and Bitstamp stretch it too far for personal information.

Regarding a trustworthy exchange then you are right when dealing with fiat. If you don't need fiat then a DEX is the answer.
Cardano is the most promising 3 gen. crypto right now.


Reply
#4
(2019-01-23, 01:01 PM)Carsten Wrote:
(2019-01-23, 11:43 AM)BobBobert Wrote: PCI DSS checks - I think that they are a rip off and a money generator for 3rd parties.  I spent close to a whole morning checking and updating our annual check and we have one of the simplest systems there are.

Anyway, this post highlights a market opportunity - a good quality trustworthy exchange that does not go down this route will be a winner.

Yes it's too much. All this crazy regulation is too much. Any European country is regulated so if a mysterious money transaction goes to your bank account it will be flagged for investigation. I therefore see no need at all why some of the exchanges like Cex.io and Bitstamp stretch it too far for personal information.

Regarding a trustworthy exchange then you are right when dealing with fiat. If you don't need fiat then a DEX is the answer.

The joke in that case about checking mysterious transactions is that the biggest bank in Denmark has been money laundering over 53 billion danish crowns and was going on for over 8 years! And now they are busted, but still no one has been put to jail for this.....
If you wanna donate in any cryptocurrency just send me a message and i will set it up(If i haven't) Smile All donations is appreciated  
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#5
It is not all about KYC, AML and regulations.
Companies like cex.io, banks and other organizations use these new regulation laws as a system the make money.
They harass people with these questions. Knowing that some smaller and maybe some medium investors are not going to react because they don't want the authorities to have knowledge about their financial situations. So when these people do not react they freeze the accounts. Well they don't freeze but they keep the money from these accounts. This is called "easy money". It is known worldwide that companies have policies like that. Let me explain:
Send your customers bills for services like telephony, electricity, any recurring service. But once in a while they make mistakes on purpose. They send you higher bills. Many individuals will not notice this and will pay. The few that notice this will get a refund, but all the rest is screwed. This is not illegal, because errors may occur. As long as it is not proved it is done on purpose, you are allowed to make mistakes. How convenient for these big companies!!!!
Well with these crypto exchange it is almost the same.

This is why we need DECENTRALIZED EXCHANGES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Am I this clear enough?

I am sick of all these companies, organizations and even individuals who are trying to make profit of "joe sixpack" who tries to survive in this shitty world.
Sorry this time for my language, but this realy makes me very mad!!!!!!!!!!!!!!!!!!!!

I just remember this example of easy money policy.
Many years ago I used to pay my electricty bill by debit system. I system to give the electricity company the authorithy to debit my account (monthly or bimonthly).
Once they made a mistake and took money from my bank account for a huge amount. It took me about 6 months before I realised it was not correct.
I contacted them but never got any reaction. So I decided to stop payments. I few months later they started a lawsuit against me.
Luckily enough I had all proof of payments and decided to not give up. Big companies have an army of law lawyers, but stubborn as I am, I decide to fight back.
I even decided not to use a lawyer because I had all proofs and I was right.
I had to go to court many times (by myself without lawyer). The last argument they used was that there was a mistake and they changed bank account number and they didn't notice my payments.
But I won.
The result was they had to pay me the interest on the money I paid in advance.

Guys, we have to get rid of all this injustice of big companies and even of authorities who believe the can afford what ever they want!

This is why I want decentralization.
What is this thing that builds our dreams, yet slips away from us?

Reply
#6
(2019-01-23, 08:42 PM)Hugues Wrote: It is not all about KYC, AML and regulations.
Companies like cex.io, banks and other organizations use these new regulation laws as a system the make money.
They harass people with these questions. Knowing that some smaller and maybe some medium investors are not going to react because they don't want the authorities to have knowledge about their financial situations. So when these people do not react they freeze the accounts. Well they don't freeze but they keep the money from these accounts. This is called "easy money". It is known worldwide that companies have policies like that. Let me explain:
Send your customers bills for services like telephony, electricity, any recurring service. But once in a while they make mistakes on purpose. They send you higher bills. Many individuals will not notice this and will pay. The few that notice this will get a refund, but all the rest is screwed. This is not illegal, because errors may occur. As long as it is not proved it is done on purpose, you are allowed to make mistakes. How convenient for these big companies!!!!
Well with these crypto exchange it is almost the same.

This is why we need DECENTRALIZED EXCHANGES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Am I this clear enough?

I am sick of all these companies, organizations and even individuals who are trying to make profit of "joe sixpack" who tries to survive in this shitty world.
Sorry this time for my language, but this realy makes me very mad!!!!!!!!!!!!!!!!!!!!

I just remember this example of easy money policy.
Many years ago I used to pay my electricty bill by debit system. I system to give the electricity company the authorithy to debit my account (monthly or bimonthly).
Once they made a mistake and took money from my bank account for a huge amount. It took me about 6 months before I realised it was not correct.
I contacted them but never got any reaction. So I decided to stop payments. I few months later they started a lawsuit against me.
Luckily enough I had all proof of payments and decided to not give up. Big companies have an army of law lawyers, but stubborn as I am, I decide to fight back.
I even decided not to use a lawyer because I had all proofs and I was right.
I had to go to court many times (by myself without lawyer). The last argument they used was that there was a mistake and they changed bank account number and they didn't notice my payments.
But I won.
The result was they had to pay me the interest on the money I paid in advance.

Guys, we have to get rid of all this injustice of big companies and even of authorities who believe the can afford what ever they want!

This is why I want decentralization.

I agree. We need decentralized exchanges. The problem is how do we do it in practice? The idea is there but how do we get it to work? Also very nice that you won that lawsuit, that was very well done!
If you wanna donate in any cryptocurrency just send me a message and i will set it up(If i haven't) Smile All donations is appreciated  
Reply
#7
(2019-01-23, 08:42 PM)Hugues Wrote: It is not all about KYC, AML and regulations.
Companies like cex.io, banks and other organizations use these new regulation laws as a system the make money.
They harass people with these questions. Knowing that some smaller and maybe some medium investors are not going to react because they don't want the authorities to have knowledge about their financial situations. So when these people do not react they freeze the accounts. Well they don't freeze but they keep the money from these accounts. This is called "easy money". It is known worldwide that companies have policies like that. Let me explain:
Send your customers bills for services like telephony, electricity, any recurring service. But once in a while they make mistakes on purpose. They send you higher bills. Many individuals will not notice this and will pay. The few that notice this will get a refund, but all the rest is screwed. This is not illegal, because errors may occur. As long as it is not proved it is done on purpose, you are allowed to make mistakes. How convenient for these big companies!!!!
Well with these crypto exchange it is almost the same.

This is why we need DECENTRALIZED EXCHANGES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Am I this clear enough?

I am sick of all these companies, organizations and even individuals who are trying to make profit of "joe sixpack" who tries to survive in this shitty world.
Sorry this time for my language, but this realy makes me very mad!!!!!!!!!!!!!!!!!!!!

I just remember this example of easy money policy.
Many years ago I used to pay my electricty bill by debit system. I system to give the electricity company the authorithy to debit my account (monthly or bimonthly).
Once they made a mistake and took money from my bank account for a huge amount. It took me about 6 months before I realised it was not correct.
I contacted them but never got any reaction. So I decided to stop payments. I few months later they started a lawsuit against me.
Luckily enough I had all proof of payments and decided to not give up. Big companies have an army of law lawyers, but stubborn as I am, I decide to fight back.
I even decided not to use a lawyer because I had all proofs and I was right.
I had to go to court many times (by myself without lawyer). The last argument they used was that there was a mistake and they changed bank account number and they didn't notice my payments.
But I won.
The result was they had to pay me the interest on the money I paid in advance.

Guys, we have to get rid of all this injustice of big companies and even of authorities who believe the can afford what ever they want!

This is why I want decentralization.

I see Hugues. I tend to agree with you. I don't know if they do it purpose to make money but you are probably right. With Bitstamp I got my money after too long time, but I got it without interest of course and without ANY influence on the price of my crypto they claimed to have sold. I didn't even saw the price.
Cardano is the most promising 3 gen. crypto right now.


Reply
#8
A decentralised fiat exchange will be hard work, even if it is kept simple to say just Euros and maybe 2 or 3 cryptos. Well I guess building it is easy but getting the reputation will be hard. How do you measure reputation? Peer reviews? Length of time established? ? ? ?
Reply
#9
(2019-01-24, 05:35 PM)BobBobert Wrote: A decentralised fiat exchange will be hard work, even if it is kept simple to say just Euros and maybe 2 or 3 cryptos.  Well I guess building it is easy but getting the reputation will be hard.  How do you measure reputation?  Peer reviews?  Length of time established? ? ? ?

there must be more systems like https://dether.io/
I posted about it several months ago.
What is this thing that builds our dreams, yet slips away from us?

Reply
#10
(2019-01-24, 07:09 PM)Hugues Wrote:
(2019-01-24, 05:35 PM)BobBobert Wrote: A decentralised fiat exchange will be hard work, even if it is kept simple to say just Euros and maybe 2 or 3 cryptos.  Well I guess building it is easy but getting the reputation will be hard.  How do you measure reputation?  Peer reviews?  Length of time established? ? ? ?

there must be more systems like https://dether.io/
I posted about it several months ago.

I had forgotten all about dether
http://rimbit.dk/thread-605.html?highlight=dether
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