Knowing your customer

Hello guys,
It's a beautiful day of the week and I'm delighted to share my entry in this in this week's contest organised by @khursheedanwar which talks about the topic Knowing your customer. Everyone who is into Cryptocurrency must have come across this word over and over again though I'm certain that many doesn't know what it is all about hence this post today will help us to understand it.

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My kind appeal to you is to continue reading this post till the end because you will get to learn something new from it even if you already know what Knowing your customer (KYC) is all about. Without further ado, let's get started.

- What is knowing your customer?

Knowing your customer which is abbreviated as KYC is a mechanism used by cryptocurrency companies, organisation and other financial as well as different organisations to keep track of those who are real users of their platform or products.

As we all know, in the crypto space there are many opportunities which can change your life for the better and a good example is airdrops, mining and many more. Since people get all of these for free just by doing some little tasks, a lot of people tends to cheat the system by trying to farm rewards using different means and that is where the KYC plays its role.

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KYC is done with some documents under consideration such as you bank verification number BVN, your national identification number NIN and many more based on the country you come from.

When you are registering for all these projects, they give you room to carry out your KYC so that one person will not have multiple accounts. So while doing the KYC a snapshot or a little video will be done to get your detail and also you will be required to provide your ID 🪪 card as well as other relevant details some that they can match it to be sure you are the one.

Once this details has been taken into account, no one else can be able to use same details in the registration hence the platform, exchange or anything you are registering for has gotten your information and stored meaning they know you because they have a copy of your document and it is stored in the blockchain which means it is immutable.

- In which recent crypto project or anything related to Crypto compelled you to verify yourself through KYC? Explain?

The last thing that compelled me to do a KYC recently was when I was opening a poloniex exchange because of the many regulations in the country and the restriction of some exchange for carrying out P2P transaction.

As may have heard or know that there is a band by the federal government on some exchange platform here in Nigeria including Binance exchange and for that reason there is no P2P trading for Nigerians now on Binance.

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I had to look for other exchange that had P2P so that I can sell my asset and then convert the money to my local currency and use. So I discovered that poloniex still have the P2P.

So recently I downloaded and registered for the exchange 💱 and I was compelled to do KYC before I could start trading. Among other things, I was required to provide my ID card, a facial verification where I was asked to rotate my head, blink my eyes, open my mouth and many other things just to mention but a few.

It is important to mention here that the KYC was in stages and every stage has its limitations on the amount you can trade. So if you complete all the KYC process then you have lifted the band's to trade infinetly. But the major part was the details of your ID, uploading it, providing your NIN or BVN and the facial verification.

So that was they recent KYC process I was compelled to do recently. If you are using poloniex I believe you should understand better.

Finally, I want to invite @josepha, @solaymann, and @waterjoe to also join the contest here in this community today.