KYC in CRYPTOCURRENCY

in blockchain •  11 months ago 

Yesterday , I shared a post about AML and in it made mention of KYC

What is KYC?

KYC is the short form of Know Your Customer. It is the computer identification process that includes steps and process which help in determining the true identity of the customer.

The process of KYC also helps an organization in listing down many other facts like the source of income/funds, the nature of customer business, and many more. The process helps financial organizations like the bank in calculating far-sighted risks.

KYC consist of some steps which help in saving numerous financial institutions and stay protected from criminal elements resulting in money laundering.

The modern cryptocurrencies and exchange are coming with KYC policy. The users have to approve their KYC before using the exchange or investing in the specific cryptocurrency.
KYC was also the hot topic in g20 conference about cryptocurrency regulation. We will witness the new currencies coming with KYC policy.

If you contribute in cryptocurrencies as a money service business you must understand, and comply with KYC.

For example, if you are going to start a Bitcoin exchange, a Bitcoin ATM, or even an ICO you must follow the KYC requirements.

KYC Documents
KYC require specific documents. Every company has their own set of rule. Some company will ask you for national id card and some will ask for a driving license. Below is the list of complete KYC documents you need for KYC approval:

Full Name
Residence address
Citizenship
Birthdate
Photo of government-issued Driver’s License, Passport, ID card
Social Security number or Tax Identification
Bank Statement
Utility Bill
Photo of the bank card

A step further into KYC is KYCB which in a nutshell refers to Know Your Customers Business, where the companies demands to know the nature of their clients businesses.

Source: www.onecoinpk.com

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