As you know, Digitex has been the subject of a large data breach of sensitive documents taken from our third-party KYC portal. The investigation is ongoing and Adam feels personally responsible as it was an internal breach made possible by unacceptably lax security standards. We have now taken on security consultants and will do everything in our power to ensure that this never happens again - starting with removing KYC completely.
Why Digitex Is Removing KYC
Adam explains in the video that he, as an exchange owner, has no need to know exactly who his customers are. He says that most people in the industry seem to have accepted the rules and that we must do KYC on everyone. But he openly stands against it.
He says that the regulators justify the need for KYC to prevent money laundering and financing terrorism. But Adam sustains that the very idea of anyone laundering Ether into DGTX to fund international terrorism is utterly “ridiculous.”
“It’s a crock of sh** and I’m calling it out for what it is,” he says. Adam recognizes that he accepts that U.S. regulators have decreed that its citizens cannot use unregulated exchanges. He does not agree with it, but still, Digitex will abide by all methods of blocking U.S. citizens from the platform by barring U.S. IP addresses and making people check a tick box to say they are not from the U.S. and they agree to detailed T&C. “I believe that is every reasonable measure I can take,” he says.
However, he will not subject other Digitex users to KYC because the U.S. authorities dictate it. He believes that it is unreasonable and he is not going to do it. “We all know the real reason for KYC… Big brother wants to know what everybody is doing all the time and I don’t believe they have the right to do that to everyone in the world… We have a right to a certain amount of privacy. Exercising that right does not make you an international terrorist or a money launderer or a criminal of any kind.”
Adam confirms that as of the end of this week, KYC will be removed. Users will not have to do KYC to buy DGTX tokens from the Digitex Treasury and from the mainnet launch, no KYC will be necessary on the Digitex exchange.
He apologizes once again for the unfortunate data breach and says that by not needing your documents at all, he can absolutely guarantee that this will never happen again. So, let us know your thoughts on the usual channels and join in the conversation on the Digitex Telegram chat. Adam will be holding an AMA on this topic this Friday at 5pm MSK time (2pm UTC) on the Digitex Futures official Youtube channel.