Do big exchanges actually care about where your crypto comes from?

When you send a bunch of ETH or USDT to a big exchange, do they really care if it’s from a smaller non-KYC exchange like Blofin or even a bridge?

Exchanges have this thing called "Know Your Transaction" or KYT. It's like a system that checks where your funds came from. If it’s from a mixer, gambling site, or linked to something shady, they’ll flag it. They assess risk too, like high, medium, low.

They definitely care. That's why they have KYC for all users. If you want zero hassle, just stick to decentralized exchanges.

I’m not convinced exchanges really care about the source unless something seems off. They mainly look into it when they suspect fraud. Otherwise, they don’t sweat the details.

But how can they trace back the funds? If a wallet is funded from MEXC, doesn’t that just show MEXC as the origin? What about previous transactions?

It’s not just the amount; even small sums can get flagged. They have tools to trace coins back. If your coins are clean, you shouldn’t worry.

True. But if you send a huge chunk, like $1M in one go, they’ll definitely ask questions. Sending smaller amounts seems safer.

I use DEXs too, but eventually, I need to cash out to fiat. I once used a mixer, so are all my wallets now tainted? That’s why I'm using smaller exchanges before hitting places like Coinbase.

They can track tainted coins, but if you’re withdrawing from a legit exchange, I think you’re good. Just avoid P2P or mixers before moving to big exchanges.

Kraken supports XMR. If you buy XMR on a non-KYC exchange and send that to Kraken, wouldn’t that help you avoid tracing?

Honestly, you might be overthinking it. Exchanges use fancy tracking methods, but using a mixer doesn’t mean you’ll get locked out. Many have used mixers without issues.

I’m worried since I got banned from Gemini. Do they ask for extra verification if I’m dealing with large amounts?

They definitely want to know where your funds came from. It can take time. If you’re not ready to share info, it might be better to avoid those exchanges.

What kind of proof do they usually need? Like tax returns or records of my crypto buys? If I want to cash out to fiat, how else do I do it?

Some exchanges care more than others. Newer exchanges might not have the tech to track suspicious coins. But big amounts can raise flags.

They might not care a lot about security, but they keep tabs for reporting. They’ll claim to care about where funds come from, but it’s kinda just for show.

So, I should just avoid sending anything from the wallet that used a mixer? Need some tips here.

Has anyone tried this AML scanner? Is it reliable for checking if my address is safe?

They care because of regulations, especially for large transactions. They probably have systems in place to monitor without us noticing.

If you’re moving a lot of money, they’ll definitely put extra scrutiny on it. If anything looks shady, they’ll likely ask for more documentation.