KYC (Know Your Customer)

What does KYC in Crypto mean?

Know Your Customer (KYC) is the first anti-money laundering (AML) due diligence stage. When a financial institution (FI) onboards a new customer, KYC procedures are implemented to identify and verify the customer’s identity, these processes enable financial institutions to assess the customer’s risk profile based on their propensity for financial crime.

Now that cryptocurrency exchanges and wallet providers are regulated as financial institutions, they must integrate KYC processes into their AML programs.

KYC refers to the process that cryptocurrency exchanges must go through to:

• Confirm their end users’ and customers’ personal information 
• Acquire a better understanding of the activities of their potential customers and verify their legality.
• Determine the probability their customers pose money laundering risks.

How does the crypto KYC process look? 

To comply with KYC measures, cryptocurrency exchanges must take the following steps: 

• ‍Step 1: Collect their customers’ personally identifiable information (PII), including their full name, place, date of birth, and address.‍
• Step 2: Compare this information to their official government-issued identification, such as a passport or state-issued driver’s license, and proof of residence, such as a utility bill.
• ‍Step 3: Verify the customer’s identity against official databases that contain information on Politically Exposed Persons (PEP) and sanctioned individuals.

These steps help financial institutions determine each client's virtual currency money laundering and financial crime risk. If everything checks out, the customer is permitted to engage in certain activities on the cryptocurrency exchange.

Do crypto wallets need KYC compliance?

Custodial crypto wallet providers are now mandated to perform KYC, as they are regulated as financial institutions.

Bitcord.io KYC Module Screenshots

User side KYC Form:

Admin side KYC Applications:

Requirements

• Bitcord.io ICO Launchpad Software (You can get one here: https://bitcord.io/pricing)
• Your own Token/Coin (Or if you don't have it, we can create one for you)