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KYC exchanges that don't ask for KYC until after you deposit. Is this even legal?

Bitcoin Reddit

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Buddy of mine had been using an exchange for about 2 months before they locked his withdrawals and asked for KYC. Only deposited once and had been swingtrading. The amount was about ~2grand (small amount for him). When he went to withdraw the withdrawals were locked and KYC asked for. I would like to know how this is legal? Even banks have to give you your money if they lock/freeze/delete your account.

submitted by /u/vivapote
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