|
What is KYC: concept, process and benefits
What is KYC: concept, process and benefits
Date: 12/12/2022 10:18:26 AM ( 22 mon ) ... viewed 1184 times What is KYC verification?
KYC is the verification of a user's identity by requesting personal data. The abbreviation itself comes from the expression "Know Your Client", which refers to the procedure of confirming a user's identity. KYC verification is present at most cryptocurrency exchanges and most often is not mandatory. However, its passing gives the user significant advantages.
Different cryptocurrency exchanges have different requirements for KYC, different terms of verification and the benefits a client receives as a result. Many users are reluctant to provide information about themselves, worrying about the security of sensitive data. However, it's worth remembering that the presence of KYC is an indicator of an exchange's reliability. A platform that does not require any data from you, therefore, does not have any responsibility to you. Learn how to implement KYC verification with https://kycaid.com/.
The "Know Your Customer" principle: what are the benefits?
Client verification is a mutually beneficial procedure for the centralized platform and traders. That's why both parties benefit: the exchange receives information about customers, their risk profile and financial situation, while customers in return receive enhanced protection for their accounts and a set of features not available to users who are not verified.
KYC and AML: fighting financial terrorism
AML - Anti-Money Laundering, which stands for Anti-Money Laundering, is part of the policy of any self-respecting exchange. The name itself suggests that it is a set of measures and laws aimed at combating money laundering. This category includes assets derived from drug trafficking, terrorism financing, child exploitation, creation of weapons of mass destruction, etc.
Because of the anonymity of cryptocurrency transactions, the digital asset market has become an attractive platform for money laundering. This benefits criminals and harms honest users, reducing the reputation of cryptocurrency. Hence the need for AML and KYC.
AML links the KYC database and other sources of information to analyze transactions, identify suspicious moments and verify them by matching verified users with addresses in the blockchain. Thus, when users pass KYC en masse, cryptocurrency transfers will become more secure because it will then be easier to trace "dirty money" and punish those responsible.
Why do I need to go through verification?
User verification is crucial for anti-money laundering, gives extra protection to accounts and empowers traders to use the exchange.
Conclusion
KYC verification is an important element of any trustworthy cryptocurrency exchange that benefits both the platform and its users by protecting traders' assets and preventing money laundering. Even though KYC deprives users of complete anonymity, it is made up for by the benefits of a verified account.
Add This Entry To Your CureZone Favorites! Print this page
Email this page
 Alert Webmaster
|
