What is ‘KYC’ and why everybody should use it
Over the last years, governments have been holding financial institutions to ever higher standards when it comes to “Know Your Customer” (KYC) laws. But established finance firms don’t bear that burden alone; KYC regulations have far-reaching implications for consumers, and are increasingly becoming critical issues for just about any institution that touches money (so, just about every business).
So while banks are required to comply with KYC to limit fraud, they also pass down that requirement to those with whom they do business. Crypto startups, of course, are no exception and that is why BehaviourExchange requires all contributors in the ICO to fill out the KYC form.
In short: know your customer (KYC) is a proces where financial institutions and businesses obtain information aboutthe identity and address of the customers.
The idea is that knowing your customers – verifying identities, making sure they’re real, confirming they’re not on any prohibited lists, and assessing their risk factors – can keep money laundering, financing of terrorism, and more run-of-the-mill fraud schemes at bay. The key is finding a balance so that these efforts are effective without penalizing innocent consumers or being so onerous that upstarts can’t comply with them (and hence can’t compete).
Regulations are becoming increasingly stricter, meaning financial institutions have to spend more money to comply with them or be subject to steep fines. Other businesses aren’t being regulated in the same way banks are, but knowing your customers is a good idea anyway. It lets you detect suspicious or potentially fraudulent customers before they get to the bank via your services, letting you stop the fraud before it happens.
ATTENTION friends, and supporters of BehaviourExchange!
We would like to remind you that BehaviourExchange’s private PRIVATE SALE is closing on the 31st of May 2018, so hurry up and whitelist ASAP! Joins our global movement, which will enable millions of companies and online visitors to use the internet in a much more user-friendly and efficient way. Find out more on the official website!
Interesting reminds me of Peer Mountain. I think we'll see more projects related to identity and verification due to crime being committed using crypto.