New MyEtherWallet Feature Gets Around KYC Requirements

February 22, 2019 10:48 PM

A new interface update to MyEtherWallet (MEW) enables users to bypass know-your-customer (KYC) requirements when trading bitcoin and Ether for fiat, according to a February 20 blog post.

The MEW V5 interface was first announced on Monday, February 11, and described as «completely redesigned inside and out.» MEW V5 was designed to enhance the user experience and increase the ease of use for cryptocurrency experts and beginners alike. One such feature allows users to swap bitcoin and Ether for as much as 5,000 Swiss Francs ($5,001.68), or the equivalent thereof in Euros, without jumping through a series of KYC hoops.

The avoidance of KYC requirements is made possible through a collaboration between MEW and Switzerland-based brokerage company Bity. Bity provides borderless «crypto finance services» and oversees a network of cryptocurrency ATMs in five Swiss cities, with plans to establish more in the near future. Because Bity is in compliance with «the Swiss Anti Money Laundering Ordinance (AMLA),» users can exchange their crypto using the new «Exit-to-Fiat» feature, and Bity’s wallet can verify wallet ownership.

During the process, users of MEW V5 will be asked for identifying information such as their phone number, international bank account number (IBAN), bank identifier code (BIC), bank ABA routing number, the official name of the bank account, and their billing address. MEW says that this information is used for Bity’s compliance regulations only; MEW does not save any of this information or use it to contact customers.

Many cryptocurrency investors value anonymity, but many governments associate privacy related to financial transactions with criminal activities such as drug trafficking, money laundering, and the financing of terrorist organizations. In June 2018, for instance, Canada’s Department of Finance announced official regulations for crypto exchanges, stipulating that no transactions over 1,000 Canadian dollars could be completed without the customer providing identifying information.

Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.

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