Is KYC Data Safe After Local Bitcoin Shutdown?

Quick question, if anyone used KYC on LBC, are those trades still linked to you? Tax authorities, like IRS or HMRC, could request that info. But now that LocalBitcoins is gone, what if someone deleted their account? Does that mean the tax man can't trace those trades?

Look, if you made money, taxes are on you. If you think you can dodge your tax office just cause the exchange is dead, good luck with that.

Exactly, what's the deal with KYC if the exchange goes under? I'd like to know if deleted accounts also delete KYC info. Seems like a lot of exchanges are going belly up lately and it's a valid concern.

Legally, businesses need to keep records for several years, even post-closure. But even if they wipe KYC info, there's a chance it still exists somewhere, like government databases or third-party services. Plus, data breaches are a reality.

I hear you but if you're playing games with the tax office, be careful. Check your country's laws on tax crime expiry. And don't forget LBC was based in Europe, meaning you might need solid excuses if they come asking.

Trust me, all your KYC data isn't just gone. The government retains that info and they won't delete it easily. Even apps claiming to be decentralized gather data through your IP think about MetaMask blocking users during the war.

It's not just about what info they have. They might know about your income, but they've got to follow legal procedures to charge you. Here, tax inspectors usually try to scare you into fines, but having a lawyer changes the game.

No clue if it’s the same everywhere, but I suspect bankrupt crypto firms sell user data. I’ve been getting random spam on my phone that's never been used anywhere else it’s sketchy.

They definitely keep user activity records for some time. Plus, they can't just go dark without regulatory checks. After closing, contacting them might be a hassle without legal support.

Most exchanges use third-party KYC services, which probably have their own data retention rules. LocalBitcoins isn’t any different. Government could easily subpoena those KYC records if needed.

Not sure how powerful tax inspectors are where you are, but it usually takes a lot of red tape for them to get this kind of info. In Russia, for example, anything that violates law usually leads to backlash for the initiator.

Just my take, but deleting your account doesn’t mean the KYC data disappears. I tried deleting data from an app once, and they still had records of my activity. Transactions might vanish, but the KYC info probably doesn’t.

That app likely keeps a list of active numbers. Just a number alone can’t be pinpointed to someone. Scammers twist even simple data to pretend to be legit, but crypto exchanges are on a whole different level.

on top of that, since they operated in several countries and had to comply with licensing, they probably followed local laws on record keeping. If the law says hold records for 5 years, data’s sitting there for that long.

And remember, KYC data is valuable! Say I worked for LocalBitcoins and saw a bunch of US names on a list they could be worth cash to the US for tax avoidance cases. Not sure about Finnish laws on that, though.

Yeah, that makes sense. They probably hold some of my data there too. But is it really transactional info? I couldn’t find much on what happens to data when exchanges go under, just a few articles.

All data's a commodity people pay big for it. Legally, though, the government needs grounds to use it. The longer it sits, the harder it is for tax offices to do audits because of statute limitations.

Not certain about Finland, but here companies need to keep records for 7 years. During that time, any government can ask for info and firms have to comply. By the way, I never got an email asking me to delete my LBC data.

When a company shuts down, it's still bound by laws. Tax inspectors usually check records before closing down. Who's responsible for holding that data post-closure? Honestly, there’s always a way to sidestep laws or lessen penalties.