<p>I have seen different trading websites on Bitcoin and a question came to my mind:</p>

<p><strong>Security</strong>
Why do they require so much identity verification? If I remember correctly <em>MtGox</em> (despite what later happened) when it started, it didn't require any id\bank verification. So my question here is: is identity verification required by law even when dealing with bitcoin trading or is it an anti-fraud system enacted by the trading operator?</p>

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2014-07-19T22:17:27.453Z
Please ask unrelated questions in separate posts. I am editing out your second question; you can view it in the edit history if you want to paste it into a new question.
Nate Eldredge
<exchanges><regulation><financial-regulations>
Bitcoin trading: security
Mark Thompson
# Bitcoin trading: security

(Asked by: username_0 on 2014-07-19)

I have seen different trading websites on Bitcoin and a question came to my mind:

**Security**
Why do they require so much identity verification? If I remember correctly *MtGox* (despite what later happened) when it started, it didn't require any id\bank verification. So my question here is: is identity verification required by law even when dealing with bitcoin trading or is it an anti-fraud system enacted by the trading operator?

**Tags:** exchanges, regulation, financial-regulations

> **Comments:**
> **username_1**: Please ask unrelated questions in separate posts. I am editing out your second question; you can view it in the edit history if you want to paste it into a new question.  

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