Palau’s Digital Residency: ID for Easy KYC on Crypto!

The Country of Palau is offering a Digital Residency Program and provides Identification to be used to complete KYC for various Crypto Exchanges. Many US Citizens as well as Citizens of other Countries (that have crypto restrictions) have applied and received this digital residency. I have found a few videos where this program is discussed. It only costs $248 for 180 days or so. But that is enough time to register on a crypto exchange and complete KYC. Typically exchanges don’t ask people to redo their KYC, so the 180 days are probably enough. Although Palau does offer 5 and 10 years program as well.

Please note: I just found out about this and have not done this myself. So I do not have enough/complete information about the legalities and risks of doing this.

In the first video the author shows the steps, as well as which crypto exchanges he was able to successfully complete KYC on.

https://youtu.be/DeCZxyOTLbY
How to bypass US crypto laws (LEGALLY)
Full Value Dan
Jul 21, 2023
I just bought myself an ID, that gets me verified on a lot of international crypto exchanges…legally. That means I now trade for a larger selection of cryptocurrencies, futures, staking and much more.
In this video, I’m going to explain how I did it, how long it takes and which exchanges it works with. And all of this was done using a US passport.
As for the legal stuff, international crypto exchanges are not supposed to allow US residents to use their services. But residents of other countries can. So in this video we’re going to become a resident of Palau, without actually having to go anywhere.
Important note: Don’t use the address on the back of the ID. The RNS ID people said they’ll charge you for it if you do. So might need to just skip exchanges that require an address for now.
Timestamps:
00:00 How to bypass KYC for crypto exchanges
01:55 Disclaimers
03:21 What is the Palau Digital Residency Program?
04:19 Palau Digital ID vs Voyager Pass NFT
05:57 Application process
07:16 Which crypto exchanges can I use?
08:55 Palau ID referral link
09:31 Palau ID future enhancements

Binance – KYC failed
Bitget – KYC successful
Bybit – KYC successful
Kucoin – KYC successful
Pionex – KYC successful
Tidex – KYC successful
Kraken (international) – KYC successful

NotebookLM AI Summary:

The video summarizes a strategy for legally bypassing US crypto exchange regulations by obtaining the Republic of Palau digital residency ID (RNs ID),. Since most crypto exchanges do not support US citizens due to regulatory restrictions, this ID serves as proof that the user is not a US resident for the purpose of KYC (Know Your Customer) verification,.

Key Details and Costs:

• The ID cost the speaker $248 and the application process took 27 days from submission to receiving the physical ID,.
• The application requires personal information and a passport, and US citizens are still eligible to apply for the Palau Residency program.
• There is also an NFT option called the Voyager Pass, which costs 0.15 ETH and grants one year of ID access. The standard ID program offers one-year, five-year, or ten-year options at different price points.

Benefits and Legality:

• The Palau digital residency ID is a legal ID that is web 3 compatible and allows for KYC approval with institutions, primarily crypto exchanges,,.
• The ID serves as an identification document, but it is not a certification of citizenship in Palau.
• The ID provides a Palau physical mailing address (the digital residency P.O. box) which can be used when applying to crypto exchanges.
• Additional benefits include an extension of 180 days of stay per entry in Palau, and the fact that Palau does not impose taxes on income earned outside of Palau.
• However, users are asked to respect the laws of their current place of residence, and the speaker emphasizes that the United States taxes all citizens regardless of where they live.

KYC Success and Exchange Access:

• The ID was successfully used to gain KYC approval on several major international crypto exchanges, including Bitget, Bybit, KuCoin, Hi NX, Tydex, and Kraken (the international version).
• Using these international exchanges grants access to products and services, such as staking and earned programs, that are often restricted to US residents due to domestic regulations.
• The speaker noted that Binance rejected the ID during the application process because they only accepted passports for verification.
• Future enhancements planned for the Palau digital program include providing a physical address, phone number, and utility bills.

https://youtu.be/2tg2Z9egNb0
KYC On Crypto Exchanges with Palau Digital Residency ID?!
Crypto Cash Flow
Oct 9, 2023
In this video we go through the Palau Digital Residency sign-up process and how you can legally bypass KYC on some of your favorite exchanges that you may not be able to access right now.
If you are a US Citizen or in any residing country that isn’t able to KYC because of different restrictions than this could be your way around!
This is revolutionary and a gateway into KYC and a new world within Palau that we all get to explore with this new Palau Digital Residency.

NotebookLM AI Summary:

The central problem addressed is the difficulty that US citizens and other individuals face in signing up for various cryptocurrency exchanges due to Know Your Customer (KYC) requirements and compliance with regulations. KYC involves providing personal identity and information to exchanges to prevent illegal activity. Because certain international exchanges (like Binance International and Bybit) do not favor US policies and regulations, lack of access prevents users from securing liquidity and opportuning on specific cryptocurrencies before a fast-moving bull market.

The solution presented is the Palau Digital Residency ID, a legal method to bypass KYC requirements. Palau, an island nation in the Pacific Oceana, launched the digital residency program in 2022 in collaboration with Cryptic Labs. This blockchain-based system is called the Root Name System (RNS).

Key features and benefits of the Palau Digital Residency include:

• Legal Identity and KYC: The RNS ID is the first blockchain digital residency backed by a sovereign entity and serves as a government-issued ID (received as a physical card and an NFT) recognized for legal identity and chain verification. This ID is valid for identity needs such as KYC on major exchanges like Binance International.
• Financial Benefits: The program offers 0% income tax and 0% capital gains. Palau is also developing legislation that would allow residents to set up incorporations and potentially open bank accounts.
• Privacy and Features: The RNS system is built with end-to-end encryption to provide users control over their information. It also provides features like digital signature verification, identity verification for hotels and Airbnb, and registration authenticity.
• Travel Benefits: Holders can enjoy up to 20% discounts on hotels, airfare, and car rentals when visiting Palau, paying the same rate as citizens.

The goal of obtaining this ID is to gain access to international exchanges. The application process, which can be done online, offers options such as a one-year trial for $248, or five and ten-year versions. Applicants can also purchase the Voyager Pass, an NFT that includes the ID. Once the applicant completes the process—which includes filling out information, uploading a specific photo, and undergoing government screening—they receive final approval as a Palau resident and the physical ID card is shipped. After receiving the physical ID, users can begin using it for KYC verification on exchanges like Binance International, Bybit, and KuCoin.

https://youtu.be/xQO4LfIZhr0
Exciting! Palau digital ID. KYC on crypto exchanges with digital residency on chain
White Crypto
Sep 26, 2023 ПАЛАУ
The RNS platform provides accessible digital residency for all individuals around the world through our sovereign partnership. Digital residency grants a government-issued ID from a sovereign nation. Our sovereign nation partner is The Republic of Palau.
Application to digital residency is available to anyone. Once your application passes KYC and is accepted, you will be provided a government-issued ID, in two forms: as a physical ID card that is shipped to your address, and LDID (Existing Jurisdiction) on chain.
The RNS ID is a legally recognized and government-issued form of identification and can be used for any ID requirement.
The RNS digital residency provides an identity card in two forms: (1) as a physical identity card shipped to your address and (2) as a LDID (Existing Jurisdiction) on chain
The LDID (Existing Jurisdiction), which is end-to-end encrypted, enables individuals to have control over their data and identity exposure. The LDID can also be used as an identity verification certificate for digital services requiring legal ID verification. We are currently working with many online platforms (such as one of the world’s largest crypto exchanges) to accept our LDID as a KYC certificate.

NotebookLM AI Summary:

The legal DID (Decentralized Identifier) is introduced as a legal, recognized, sovereignty-issued identity on a blockchain, which is presented as a historical moment. It functions as an on-chain representation of a user’s existing legal ID.

Functionality and Process
Users can mint their legal DID at rns.id. The process involves a charge of ten dollars, which is utilized for verification and KYC (Know Your Customer) checks. The verification process ensures compliance by checking lists such as sanction lists and identifying whether the user is a politically exposed person. For example, citizens of approved countries like Ukraine can mint their legal DID using their passport.

The legal DID is issued in the format of an SBT (Soulbound Token) or a non-transferable NFT, which enables the user to select different levels of identity exposure to help preserve their privacy.

Use Cases and Compliance
The legal DID can be used for KYC and identification verification purposes. It allows on-chain DApps (decentralized applications) to call the NFT and verify compliance information, such as confirming the person is over 21 and that their jurisdiction permits the DApp to operate legally. This capability helps DApps fulfill their compliance requirements.

The solution is preparing for increasing compliance requirements from regulators, including in the US and Europe, who are enforcing requirements like the Travel Rule to prevent financial crimes like money laundering and human trafficking, even among DeFi protocols. The legal DID offers a private way for users to interact with these DApps. The system achieves verification while maintaining “zero knowledge” (ZKH) regarding the user’s specific details, meaning users no longer need to upload pictures of their IDs repeatedly.

For wider acceptance, the legal DID is open to any on-chain DApps. Exchanges and banks can utilize B2B collaboration, either by calling an API or by checking the NFT directly for necessary fields like sanction status and age verification (over 18 or 21).

Connection to Palau Residency
The legal DID is formally accepted by the Palau digital residency as a form of KYC because the necessary background check has already been conducted. Existing Palau ID holders who have already completed the KYC process can mint their legal DID. New users can pay the verification fee to get onboarded and mint the legal DID, and they can then use that verification process to acquire their Palau residency. Although users are encouraged to pursue the Palau residency, they are permitted to obtain the legal DID verification initially even if they do not have immediate plans to apply for the residency.

I also saw a comment from a US Citizen who’s successfully done this, on Christopher Harris’ Telegram Channel:
Christopher Harris’s Telegram Channel: https://t.me/+CGd6q8QjRDowMDI1

https://t.me/c/1749237879/24096
Update on US customers and Kucoin:
Some time ago I mentioned that one could get a digital citizenship in Palau and sign up on Kucoin. I’ve initiated this process and, as of today, found it to be successful.
It took about an hour or two to complete the signup process for the citizenship and get approved (you’d need a viable photo of yourself though).
It took about 6 weeks to process, ship and receive the ID.
Took about 12 hours to get approved by Kucoin.
I did, however, have to setup a new Kucoin account (as I couldn’t change my previous upload for verification – Kucoin recommended a new account).
As a reminder – it cost about $250 for the ID.
Hope this might those of you that are really wanting to, legally, get back into Kucoin.
https://t.me/c/1749237879/24113
As I understand you are officially a digital citizen of Palau. As a digital citizen you may use platforms not registered in the US. As I understand there is nothing illegal about that.
You will not owe taxes in Palau. But you will owe taxes in the US.
However, I must admit: I haven’t looked into this in great detail (regarding all the official legalities). I heard about this from a Christian programmer (on YouTube).
However, registering for platforms not liscenced in the US is one of the exact reasons why Palau set up this digital citizenship.

Screenshot of Kukoin KYC approved: https://t.me/c/1749237879/24103

Please note: this is not a recommendation or financial advice, but for entertainment purposes only. Anything you do is at your own risk.