Anti-Money Laundering: concerning the proof of address

There is a big problem with existing bitcoin exchanges and it is called: KYC/AML. Know Your Customer / Anti Money Laundering.

If the bitcoin exchanges do not implement this policy, their banking partners will end up shutting down their accounts. So, they usually implement it. From the customer’s point of view, it means that he will have to provide scans. One scan would be a proof of identity and another one a proof of address.

Requesting a proof of identity is quite reasonable. Most people are able to provide a copy of their id card, driver license, or passport. Requesting a proof of address is not reasonable. Especially in third-world countries, many people do not have utility bills. Furthermore, the bills may be issued on the name of the landlord, their spouse, or their parents.

The KYC/AML policy insists on excluding every person from financial services, who is not able to produce such proof of address, even if he has valid reasons not to. A reasonable policy would be to accept a declaration from the financial customer as to why he cannot provide a proof of address; and that should close the case. However, they do not want to listen to reason.

Government is all about the use of force and enforcing their views onto the population. The KYC/AML rule is obviously stupid — what’s new? — and damaging to the interests of the population. What we have here, is bunch of violent idiots imposing their stupidity onto others. This is a lack of respect for the population.

All respect is ultimately based on the fear for reprisals. The population should understand that they will remain unreasonable and disrespectful until they have finally been subjected to a sufficient number of respect-instilling reprisals.

They claim that they represent the population, but how could that be, if the population insists on chastising them? People being chastised by the population cannot be representing the population, no matter what else they claim, because that would be a contradiction in terms. In other words, the population should never hesitate whatsoever to inflict respect-instilling reprisals on anybody who claim to represent them, in order to clearly show that they are not representing them.

Published by


I mostly work on an alternative bitcoin marketplace -and exchange applications. I am sometimes available for new commercial projects but rather unlikely right now.

One thought on “Anti-Money Laundering: concerning the proof of address”

  1. This is why and similar sites do a lot of business….they cater to people who prefer to deal peer to peer, not even asking for kyc/aml info most of the time. Mycelium local trader app for mobile is the same, people can find other buyers and sellers then meet face to face.
    Many people who accept bitcoin for payment also sell it to others who want it, acting as a mini exchange, also not really asking for docs.
    People who travel the world and use bitcoin to transfer their money, or cash out some in whatever destination they find themselves, will sell to whoever wants, with no documentation. When you can use it face to face, its pretty much handled like cash.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s