The Changelly service is once again under fire for holding back a large transaction of Monero (XMR) from a client that failed to complete the KYC procedure. Changelly, which does not require registration to use, offers a small selection of crypto assets.
“Once again, our risk management system may put on hold some suspicious transactions and the security department is working hard in order to process such operations in minimum time. When a customer refuses to provide the required data, we cannot simply return coins as we wouldn't like to operate and transfer coins that might be potentially stolen or raised by fraud.”
What is worrying to users is the fact that Changelly has a one-sided practice of acting based on suspicion. Because Monero is often used in dark web transactions, and cannot be traced, such suspicion may be warranted - and yet create problems for customers aiming to prove the funds were acquired honestly. The Changelly scandal arrives at a time when the popular exchange service Shapeshift also did away with anonymity, putting in place a system of accounts and registrations.
The complaints against Changelly note that the service accepts the funds, but holds back the final transaction, in which the newly bought asset is not sent to the recipient’s wallet. Changelly claimed that only 0.5% of transactions are subject to further checks and KYC.
While crypto assets are not considered money, they are still valuable, and Changelly seeks reassurance by complying with KYC requirements. The service also offers exchanges into ZClassic (ZCL), ZenCash (ZEN) and Verge (XVG), all with anonymous options.
After Changelly attempted its explanations, the XMR market price started to slide, from highs above $138 around 9:00 UTC, down to $123.99 within a couple of hours. XMR has staged a robust recovery in the past month, from lows around $81 and up to a peak on September 4 at $139.79.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.