Shotgun KYC Swapuz - Non-Custodial Trading, “Shotgun” KYC, and VPN Restrictions

Swapuz presents itself as a non-custodial crypto exchange, but its operational policies can significantly affect users who swap or deposit funds. The service uses stringent compliance controls, including KYC/Source-of-Funds requests when transactions are flagged by AML systems, and it also restricts privacy tools like VPNs and proxies. In this review-style overview, we break down the key risks such as possible mid-flow restrictions, delayed refunds, and IP and jurisdiction-based controls so you can understand what may happen if a swap triggers an automated compliance or fraud check.

Good​

• Non-custodial positioning: The service markets itself as non-custodial, which can reduce custody risk in normal operation.
• Clear statement about KYC/SOF triggers: Their terms describe that identity verification or Source-of-Funds information may be required when obligated by law or internal policy.
• Some potential resolution path: When swaps or deposits are flagged, the documents indicate there may be a way to resolve the issue by completing KYC/SoF in certain cases.

Bad​

• VPN/proxy restrictions: They explicitly prohibit VPNs and tools designed to conceal or mask your IP address.
• IP address monitoring and geoblocking: The service uses IP-based controls and can restrict access by jurisdiction.
• Indefinite freezes / stalled outcomes: If a transaction is suspected or flagged, they may suspend refunds or exchanges indefinitely pending KYC completion.
• AML/suspicious activity can interrupt the flow: Deposits/swaps can be flagged by AML checks, and verification may be required to complete trades or unfreeze funds.
• Possible upstream liquidity-provider actions: Even if the service is otherwise permissive, external liquidity partners can freeze funds and request KYC/SoF.
• Extensive data sharing: They indicate personal/account data may be shared with third parties (and possibly authorities) for compliance, fraud prevention, and service provision.

Note to the community from Trêvoid​

Swapuz may resolve some flagged cases through KYC/Source-of-Funds, but their compliance approach can still lead to stalled swaps or delayed access to funds especially if transactions get flagged or if you’re using an IP/VPN setup they don’t allow. Be cautious!

Best regards,
— Trêvoid

Swapuz charge hidden fee for a “high-risk” transfers!