What every investor should know about KYC in crypto

KYC: What is it?

KYC stands for ‘Know Your Customer’. This is a set of verification processes that are used to prove whether the counteragent is who they claim to be.

Why do we need KYC?

The main task of KYC is to validate the applicant’s identity. Why do we need this? To protect customers from fund and data-theft. Besides, KYC has some secondary tasks, including the following:

• It prevents terrorist financing, money-laundering, and tax-evasion;

It protects the businesses from fines and legal penalties.

In the digital age, it is becoming more and more difficult for businesses and individuals to protect themselves from fraudulent accounts and activities. KYC procedures should protect both businesses and customers from credit card hacks, phishing scams, counterfeit IDs usage and identity theft.

How does it work?

It depends on the company or institution that develops KYC procedures.

For example, traditional businesses, governments and regulators require individuals to identify themselves in person, with a government-issued photo ID, fill out and sign forms.

Besides, both parties can use pre-arranged questions for future transactions, complicated passwords, background and credit rating checks. In the most extreme cases they use fingerprint scans and retina scans.

We want to enjoy our anonymity in crypto, why do we need KYC?

Of course, the world of cryptocurrency was created as a regulation free zone. Decentralized, permission-less, digital cash and censorship resistant are concepts that are largely incompatible with KYC policies. At the same time, crypto-community needs the protection against digital fraud and theft. This contradiction has no simple solution. The bunch of ICO projects are trying to find a way to put our identities on-chain. New blockchain-based KYC solutions have to conduct KYC processes without compromising user data.

AiBB offers KYC solution for crypto community

AiBB provides global analytics, choosing for you the most necessary information from thousands of sources. The analytical center with the AI assistant will help you to understand cryptomarkets and will provide a productive trading. AiBB simplifies KYC  identification passing process. Do the KYC on AiBB only once and join any of our crypto partners for free trading immediately.

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