Bitcoin Forum

What is KYC ?

Know your customer (KYC) refers to due diligence activities that financial institutions and other regulated companies must perform to ascertain relevant information from their clients for the purpose of doing business with them. The term is also used to refer to the bank regulation which governs these activities. Know Your Customer processes are also employed by companies of all sizes for the purpose of ensuring their proposed agents', consultants' or distributors' anti-bribery compliance. Banks, insurers and export credit agencies are increasingly demanding that customers provide detailed anti-corruption due diligence information, to verify their probity and integrity.


Who has to enforce KYC ?

Know your customer (KYC) falls under the responsability of each financial institution and/or regulated company.

The regulations require these entities to adopt KYC procedures.  It assists them in knowing / understanding the customers and their financial dealings better to monitor their transactions for identification and prevention of suspicious transactions.


KYC Recommendations

KYC controls typically include the following:

- Collection and analysis of basic identity information (referred to in US regulations and practice a "Customer Identification Program" or CIP)
- Name matching against lists of known parties (such as "politically exposed person" or PEP)
- Determination of the customer's risk in terms of propensity to commit money laundering, terrorist finance, or identity theft
- Creation of an expectation of a customer's transactional behavior
- Monitoring of a customer's transactions against their expected behaviour and recorded profile as well as that of the customer's peers

KYC Jurisdiction and Locality

KYC regulations are local, and differ from country to country. Jurisdiction is also, on a coutry to country basis.

To know more about your specific country, visit: http://kycmap.com


KYC and Bitcoin Exchanges

Stricter KYC policies:

Bitstamp   https://www.bitstamp.net/privacy-policy/ (https://www.bitstamp.net/privacy-policy/)
Bitfinex       https://www.bitfinex.com/pages/tos (https://www.bitfinex.com/pages/tos)  or refer inquiries to compliance@bitfinex.com
BTCChina   (only since new PBOC guidance, Dec 2013) (link?)
Cavirtex   https://www.cavirtex.com/faq (https://www.cavirtex.com/faq)
Coinbase    https://coinbase.com/legal/privacy (https://coinbase.com/legal/privacy)
Kraken       https://www.kraken.com/legal/verification (https://www.kraken.com/legal/verification) (their General Counsel, Constance Choi is a well known specialist in the Regulatory and Compliance field)
Cryptonit    https://cryptonit.net/regulations (https://cryptonit.net/regulations)


Loose or non-existant KYC policies:

BTC-e   (??)
Crypsty   (??)
LocalBitcoin (p2p based, limited KYC?)

---

What is AML?

Standing for "Anti-money Laundering", it is a set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. In most cases money launderers hide their actions through a series of steps that make it look like money coming from illegal or unethical sources was earned legitimately.

Who has to enforce AML?

In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 Summit that was held in Paris in 1989.

The Task Force was given the responsibility of examining money laundering techniques and trends, reviewing the action which had already been taken at a national or international level, and setting out the measures that still needed to be taken to combat money laundering. In April 1990, less than one year after its creation, the FATF issued a report containing a set of Forty Recommendations, which provide a comprehensive plan of action needed to fight against money laundering.

The FATF calls upon all countries to take the necessary steps to bring their national systems for combating money laundering and terrorism financing into compliance with the new FATF Recommendations, and to effectively implement these measures.

Again, as in the case of KYC, financial institutions and/or regulated companies are responsible for the implementation of internal AML policies.

AML Jurisdiction and Locality

AML regulations are also local, and differ from country to country. Some countries choose a top-down approach, inheriting much of their AML policies from the FATF, while others go for a bottom-up approach and then have to reconcile both policies. Extreme countries where such reconciliation is impossible (generally due to Government unwillingness) are excluded from the FATF membership, with the corollary of increased complications to access the international markets and financing.

For a full list of FATF members, visit:         http://en.wikipedia.org/wiki/Financial_Action_Task_Force_on_Money_Laundering

AML and Bitcoin Exchanges

Currently in compliance:

Bitstamp   https://www.bitstamp.net/aml-policy/ (https://www.bitstamp.net/aml-policy/)
Bitfinex      https://www.bitfinex.com/pages/tos (https://www.bitfinex.com/pages/tos) or refer inquiries to compliance@bitfinex.com
Cavirtex   https://www.cavirtex.com/why_virtex#proactively_working (https://www.cavirtex.com/why_virtex#proactively_working)
Coinbase    https://coinbase.com/legal/privacy (https://coinbase.com/legal/privacy)
Kraken       https://www.kraken.com/legal/aml (https://www.kraken.com/legal/aml) (their General Counsel, Constance Choi is a well known specialist in the Regulatory and Compliance field)
Cryptonit    https://cryptonit.net/regulations (https://cryptonit.net/regulations)

Unknown status:

BTCChina   (unclear since new PBOC guidance, Dec 2013) (are they financial institutions?)
BTC-e   https://btc-e.com/page/1
LocalBitcoin (p2p based, limited or no AML?)

---

WARNING:
Assume that restrictions for any Bitcoin to National Currency exchange may become more restrictive at any time in the future. Many exchanges in the past have restricted currency deposits or withdrawals proactively as BitStamp has (https://www.bitstamp.net/article/bitstamp-new-verification-requirements/), without any explicit order from a government agency to do so at the time. Others like BTCChina have in response to concerns made even the ability to continue to login to their platform contingent on supplying further identifying information (http://www.coindesk.com/btc-china-now-requires-id-accounts/). In the past surprise changes to AML/KYC requirements have lead users of exchanges to have their access to deposited funds substantially delayed while complying with new requirements or even lost access to their deposited funds completely if they could not comply with the new requirements. Changing AML/KYC exchange enacted AML/KYC requirements have affected users of all major exchanges that handle both Bitcoin and National currency. People who continue using such exchanges should prepare for the contingency that their exchange of choice will change their AML/KYC requirements in the future.

Want to improve this sticky? Edits to the sticky may be paid! Please post a quote of this sticky with all of the changes you would like included in the thread linked below:
https://bitcointalk.org/index.php?topic=357590.0

Feel free to use this sticky as a general discussion of AML/KYC policies.

To expand a bit on what all this means at local level.

Services design their own AML/KYC policies and risk management processes with the over-arching guidelines and statutory requirements in mind.  Conventional financial institutions tend to have extremely conservative risk assessment frameworks because they're at risk of fines in the hundreds of millions if they're found to be non-compliant.

The risk assessment/management procedures individual institutions use are developed by them.  They get to decide which customers and what transactions are "high risk" and can and do choose to cease providing services to high risk accounts rather than apply enhanced AML/KYC compliance procedures to those accounts.  They are under no legal obligation whatsoever to allow you to operate a high risk account and don't have to justify a refusal to do so (under some circumstances, they may even be prohibited from giving you a specific reason).

Compliance is a huge administrative burden for financial institutions and it's both cheaper and easier for them to dump accounts/customers who add to that burden.  They not only don't care if you take your business elsewhere, they actively want you to do so - they want your accounts to be someone else's headache.

When your financial institution refuses to process a transaction or closes your account, they are not telling you what to do with your money.  They don't actually give a fuck what you do with your money.  What they're doing is refusing to act as the middleman in transactions which expose them to potential liability.  Any fees they might have earned from that transaction pale into insignificance compared to the fines which allowing a single transaction which breaches AML/KYC requirements can attract (it's 11 million per breach here in Australia for a corporation and a single transaction can involve multiple breaches).  It's not about your right to send funds to potentially flaky Bitcoin services or Nigerian "princes" - it's about their right (and, to a large extent, obligation) to not involve themselves in high risk transactions.

People in general greatly over-estimate their importance as customers to financial institutions.  You may believe that you're giving them "a lot of business", but in the overall context of their operations you're not bringing them enough profit to justify the risks involved in servicing your account.  They can always find low risk customers to replace you.

Can ANX get added to the list? 

We are a Money Services Operator (MSO) in Hong Kong.  This is the equivalent of a FINCEN/FINTRAC MSB in the USA.  We are under stringent compliance controls where we go above and beyond the standard KYC/AML and SSR requirements set out for the license.  Because we are in the crypto currency industry we heave to work much harder to keep abreast on the latest developments in KYC and AML than the typical MSO or banks to mitigate any risk in our business.  ANX was one of the first exchanges to implement strong KYC/AML requirements on all our customers since Day 1 of our opening in July 2013.  This proved to be painful and troublesome for some of our customers and even cost us some customers as they did not feel they needed to provide this information to us since many of the other exchanges did not have such policies and not an industry standard at the time. 

We knew that KYC/AML will be one of the main reasons why the regulators and government will ban or accept crypto currencies. Hence we had been forward thinking and adequately pre-empted these requirements that have been the norm today.  ANX is in this for the long term and will do what it takes to ensure we will stay in business to be able to provide our a customers a safe and compliant way to trade crypto currencies.

Add CoinMKT and VoS, please.

There's also https://bitcoin-central.net/ operated by Paymium (http://paymium.com/)

And here is the problem.  If you are a normal, 9-5, go home to the wife and kids guy, then you will probably fit the guidelines/expectations perfectly.

If you are (like me and many others), an expat in Asia, using bank accounts in very Third World countries, you are shit out of luck.  Can I get verified at Coinbase, Bitstamp or other major exchange?  Not likely.  I get forced to BTC-e because I don't fit the normal profile.

If I could get a KYC support person to listen to my story, and make some allowance for it, it would be easy.  Unfortunately, that would take 30 minutes which they don't want to give.  The questions usually go like this:
Why don't you have a US bank account?  Why do you have an account in Cambodia and Vietnam?
-- Because I haven't lived in the US in 8 years.  I split time between those countries.
I need a utility bill and a copy of your passport.
-- Here is the passport.  I don't have a utility bill in my name.  It is normal here that utility bills stay in the landlord's name.  Since mail is never actually delivered, I pick them up at the utility office anyway.  What can i give you instead? A copy of my lease, notarized?  A letter from the local police?  Name it.
Sorry, sir.  Our rules state that a utility bill is required.  We will not be able to allow you to transfer your money back to your account from the exchange.  Fuck off, money laundering scum.

Expected profiles and expected behavior suck.

At what point does supposed KYC/AML compliance requirement blocking access to amounts worth below the reporting trigger limits become a deliberate scam?

I am frustrated due to getting "KYC"ed for small scale investments, i.e. they already have my coin and are changing policy. Crypto financials have an absolutely abysmal security track record, and I am unwilling to spread my data around to every two satoshi operation, it's not a case of "if" ID theft will happen it's a case of WHEN. I am absolutely convinced that if I should give full ID to 10 such operations that it's absolutely guaranteed that my data would be stolen in a year. It's very highly likely even if I restrict myself to just 5... at the moment I am only providing ID to operations located in my home country who I can get restitution from easily if/when they screw up. I had deliberately limited size of investments for risk reasons and to "not have to deal" with any AML BS.

The problem is here, my credit could be abused into the tens of thousands of dollars range, so providing full ID is an additional tens of thousands worth of risk for things likely to realize a mere hundred or two in profit, if any.

I had expected crypto to fiat interfaces to require KYC, what has caught me off guard is the number of crypto<>crypto things now beginning to implement, often with no opportunity to withdraw investment.

Important aspects. But i think MTGOX should be removed from this nice article. When i see it's name i become different, furry.

AML/KYC is a barrier to entry for small Bitcoin startups and effectively hinders Bitcoin innovation .. it should be IGNORED

AML/KYC does NOT protect anyone from being scammed. MtGox was the biggest fraud in the history of Bitcoin and it complied with AML/KYC laws.

All AML/KYC does is force small Bitcoin startups out of business because they can't afford to register with FinCEN.  It's just another monopoly trick and it does NOT protect ANYONE from getting ripped off. 

Where does purse.io fit?

Valid point. They are in compliance with bankruptcy atm.

Why some trading companies ask for more documents than others?

Some KYC are very annoying.

I'd like to propose some changes to KYC/AML rules.  Criminals have been known to use their ill gotten gains to eat at restaurants and shop in grocery stores.  I guess criminal activity can work up an appetite.  It is incumbent upon restaurants to ensure that the money their customers are paying has come from legitimate sources.  All restaurants should ask for ID and a utility bill before serving customers.  They also need to ask their customers for their employer information and annual income.  Self employed customers can produce a business license or other such documentation to prove the legitimacy of their income.  Grocery stores also need to comply with these rules but in addition, grocery stores should ask for social security numbers as well.  Maybe then we can protect children and fight Al Qaeda ISIS.  

Government AML regulations put the burden on financial institutions, not regular businesses.  Many banks are choosing not to accept anonymous cash deposits into bank accounts... such as JP Morgan Chase, which now only allows people to deposit cash into their own account.

Any cash deposit or cash withdrawal of more than $10,000 is required to be reported to the Federal government.

It's not just cash deposits/withdrawals. Any combination of transactions reaching or exceeding 10.000 USD within 48 hours can/will be reported. This includes the EURO zone (SEPA) where a copy of each bank transaction is send to the US for analyses. So details of a bank transfer from Italy to Spain, or even within the same city between your family members is send over to the US. It depends on your risk profile if you get into trouble or not.

Also single person business owners (non-limited companies) also fall under that rule.

Isn't it a time to add Circle.com to the lists?
As far as I saw they request customer information and refer to KYC during registration.I wonder, whether this makes them compliant.

if possible, can you please post sites that help with verification process? Would a website like: http://authenticid.co/pro-valid.html will help?

Quite informative, thanks.

Would be very nice to extend this to some mayor altcoins sites, like BTER, i.e. It would be very good to have a community index of exchanges trustfulness.

Maybe you should expand the list with ATF, which is a relevant part too.

Anti-Terrorist Financing not Alcohol, Tobacco, Firearms. ;)

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In what aspects?

In aspect of implementing all the necessary procedures.

I do not really share their views on what Bitcoins is tho.....

http://moneytransmitterlicense.blogspot.com/ - This might just be one of the most $#^$% views on Bitcoin.

In my opinion, just another way to squeeze money out of people, to register for something, that bring little value. {Support us, and we protect you.. bla bla bla}

 

KYC/AML makes sense only when it is enforced. When a company claims that they they are complaint the questions that you have to ask what are they compliant with? and Who do they report to?

I have seen only one company in bitcoin trading that have to comply with these standards dsx.uk (http://dsx.uk). There rest of them can be doing KYC or not no one would care.

A very informative post, thanks!

what sort of KYC details would you require from a citizen of Kenya who would like to trade on your exchange/ have some sort of business relationship. This person has no ill intentions and would like to particpate in a HK based exchange and access full features.

Inbox also an option

Thanks.

This is a very good question that just came up this week with the revelations that a Secret Service agent was working on the Silk Road case, and also was working for CoinMkt Exchange as their Compliance Officer at the same time. It's quite clear from the unsealed govt documents that the agent was abusing his powers, and using them to his advantage at CoinMkt Exchange. Clearly, there was no measures or controls in place at CoinMkt that prevented or caught this abuse of power in direct relation to compliance/KYC/AML.

So even though an exchange might have KYC/AML procedures in place, as you said, it only makes sense when it's enforced and more importantly, who are overseeing these processes? Here's some more info on what I had said about this yesterday on reddit. (https://www.reddit.com/r/Bitcoin/comments/30x1he/anx_bitcoin_exchange_new_owner_of_coinmkt/cpwn5ib)

Our current economic system is fraudulent, it's not really about money laundering,, it's really about making sure joe public can't earn money from his labours without Big brother getting a hefty slice of it.

+1

Yes this is the reason for KYC/AML shit!!!
Soon I will have to bring a sample of my pee or stool to the bank if I would
have to use any of their services!

They recently started to ask fucking questions like
if I'm politically active or where do my relatives live because according to the "law"
they need to update the data they have on me?!

WTF?!  ???

The clerk gave me some papers to fill in my data and on that papers there
were written some shit about money laundering and terrorism.
I said to the clerk that if they want to get rid of terrorism
they need to seize all accounts belonging to political parties and politicians.

i think kyc is mostly used in india...
it means know your customer..
it letsan organisation know to whom they are employing, it prevents fraud and illegeal people upon using services for bad or evil purposes. 8)

I think its implemented in many parts of the world. I'm sure about USA, India, New Zealand, South Africa and U.K.

KYC REALLY JUST PROTECTS THE COMPANY AND 50% US THE USERS

A very interesting post, more of this please.

Want to improve this sticky? Edits to the sticky may be paid! Please post a quote of this sticky with all of the changes you would like included in the thread linked below:
https://bitcointalk.org/index.php?topic=357590.0

Feel free to use this sticky as a general discussion of AML/KYC policies.

I think we do need certain regulations for Bitcoins as well. too many illegal activities can mar the name. don't you think that will keep newbies away from the market?

I agree. Rules and regulations for the safety of consumers are always important. Hope more financial companies start diligent efforts to regulate BTC transactions now. Another mt.gox like situation will scare away many potential new entrants towards BTC.

Does BTC-e.com requires ID and verification?
Do they comply with KYC and AML rules?

Regards

I think AML/KYC are just excuses to keep the smaller ventures away from the main competition (monopoly anyone?). At times the rules and their rigidity can mean hindrance more than facilitating. Most times they just make it harder than ease your transactions.

its really just banks piling on imo.

What an extraordinarily useful "Heads-Up," and seriously so.

I certainly wouldn't want to muddy up the discussion with any too off-hand speculation, but if one may endeavor to extrapolate as towards any application of this knowledge: In noticing that each transaction e.g at Kraken might be, to any extent, publicly - though anonymously - advertised at least via the Kraken web API -- perhaps, with some exceptions?* -- and there may be some fairly novel, if not altogether technical things found online as with regards to any manner of a system of material provenance, ostensibly applicable as towards a manner of a data forensics, namely as among developments of a sort of a Semantic Web standards-making community -- e.g the PROV-O ontology (https://www.w3.org/TR/prov-o/) developed in the W3C standards track -- moreover, in considering the essentially transparent though immediately anonymous nature of transactions onto the Blockchain, in short, I believe that the Blockchain is already doing a lot of the book-keeping, itself? Sure, it doesn't all bridge the gap onto individual identity, but I believe it's not as though anyone was trying to keep any Bitcoin transactions "Secret" altogether?

I certainly wouldn't want it to seem like a "Buzkill" that so many transactions on a Blockchain may be already publicly advertised - as may be necessary to the authentication algorithms applied throughout the numerous finite state machines that make up the quintessential "Bitcoin System". I believe it could pose a concern as with regards to data mining, as such, but hopefully such a concern may never develop too tall of a shadow in the Bitcoin community?

Considering that an AML/KYC burden must be legally and somehow shared as a responsibility, shared as by any hypothetical Bitcoin exchange broker extending of any single Bitcoin exchange's own material services, I would like to speculate that it could be - in any semantics - leveraged onto the trust provided/developed by the individual Bitcoin exchange institution? There are some concepts of a Web of Trust, developed in some IS/IT practices?

I believe that the initial post serves to elucidate so much of a legal side of running a formal, commercial service onto a Blockchain. Certainly, it's not all about Unicorns and Silk Superhighways, LoL?

* Maybe not as much publicly available about the "Dark" Bitcoin/altcoin currencies though?

When you fill out one of these forms for KYC how long does it take till the government has a copy?
Just trying to figure out if they file the information or actually send it forward. Hoping its one of those issues where people just make sure they file the information in case of audit but something tells me they send any transaction over 10K forward for further scrutiny.

I agree that a lot of the AML KYC stuff can sometimes seem pointless. It is like an old system trying to keep track of everyone.

Did anybody catch the article about how 90% of the Bitcoin companies are meaningless because all of them are subject to AML/KYC?

https://news.bitcoin.com/tone-vays-90-bitcoin-cos-meaningless/

This coming from a Wall Street guy too.

What you think? Do we rage against the machine? Or play Trojan horse?

Hi repentance: I think you are in the know of how financial institution works and talk candid - the combination doesn't come easy. I am related to financial institutes in Australia and I'm a bitcoin early-adopter/supporter/consultant/journalist (google me Weiwu Zhang). I wish to get in touch with you:) You blocks private messages so I am trying my luck with a pubic post.

Thanks for your post, Maged. I'm curious how KYC/AML regulations come into play for Bitcoin traders on LocalBitcoins/Paxful. Are there any existing threads that provide more information about what a trader has to go through to legally buy and sell Bitcoins on LocalBitcoin/Paxful?

I'm contemplating getting involved in buying and selling Bitcoins to earn profit, and I'd like to get an idea of how many hoops the high-volume sellers I see on LocalBitcoins have to go through. I've done a few trades where I sell bitcoins for cash, and it doesn't seem like the buyers collect much information or have an extensive process for verification.


Edit: Also, is there an easy way to see the latest post in threads that I've posted in? On other forums, you can alter the settings to subscribe you to a thread when you post, then you can easily be directly to the new posts, so you can easily keep up with the thread.

This is one of the largest forums I've been a part of, and I'm noticing myself getting lost in trying to keep up with conversations.

Thanks in advance to anyone who can help me out!  :)

Nothing is going to prevent a mt. gox like situation though. It depends on your risk profile if you get into trouble or not. I'm contemplating getting involved in buying and selling Bitcoins to earn profit. This is one of the largest forums I've been a part of. I hope this would be a good experience for me.

You understand the system well. I feel bad for your situation but the fact is that those exchanges don't really care enough to bother with customers in your situation.

BJ

KYC/AML is something you can not avoid or its more and more hard

I personally have nothing against it, but my biggest concerns is privacy and security of that organization and firm that hold and keep my data
so far many hacked or leaked aml data, even banks here where I am from have lazy security, last month they trowed out old visa debit cards in a trash bin :(

Its a disaster, and insane FBI/goverment/USA they don`t care at all, they are more and more squizing for more info

Very nicely put together and explained.  This is the only problem as I see it. 

Not a problem with your thread, just a statement on the rule system.  I have been to the silk road type sites on the DW. 

You can buy a person’s info, SSN and everything for $1. You can get nice copies of ID’s, SSN card and other stuff, all for the same person for under $10.  I don’t buy them, but I see them and most of those sellers have good feedback.

The sites put the frameworks up there to comply and really could not care about the purpose and only follow through to that point of continuing to do business.

So, if I were a criminal and wanted to launder money I am most likely aware of the same things that I just stated and producing the things that these exchanges and sites need would be a piece of cake.

If I were the type that needs to launder money I surely have the knowledge and tools to turn a simple ID picture into whatever is needed and things like utility bills, well there are ten electric companies here in Florida and if I cannot download a bill template online I would be amazed. 

Whether the sites care or not, it is the people that are breaking the laws that have the easiest access to the tools to meet almost any verification online. Why did my fake ID not work buying beer when I was 16?  Because I had to use it in person.  Online, people have the time to do what they need to get around the rules. 

I am not making a statement one way or another about gun control, just using it as an example.  Gun control rules create a set of circumstances that means law abiding citizens have fewer guns and criminals have more.  The thing about a criminal is that rules do not matter to them.

I am an Asian, normally working as an expat in the Global South (Africa, South Asia, Souteast Asian) and I can tell you that in the past 15 years, KYC efforts from online payment options have been a very difficult process for me.

They do range from the merely inconvenient to what I feel is outright scammy (I refer to old-timer Paypal who would happily take a deposit or payment with zero KYC, then force you to provide all manner of impossible documentations the moment you try to access your funds).

In the age of digital bills, providing a physical sample of address is tedious process. I can't bear to think of the amount of time and money spent trying to convince an online payer/exchanger that I'm not a scary fake guy trying to abscond with 20 USD.

Forget using VPNs or travelling... access your account from another IP and these guys close down on you. They need better algorithms for one, but before that they need to be upfront about KYC. Don't surprise clients.

And yes, a good point about anonymity. What happened to the spirit of crypto?

The financial institutions are agents of the government and AML/KYC is one such rods handed to them to beat people into line, so that a tab is kept on every of their dealings for scrutiny anytime. It gives government power to poke nose into people's financial dealings and not in the least a form of protection for people finances. That is what they are missing out in bitcoin and ever since them, they have been visibly agitated and fighting hard to circumvent this freedom.

Reading the main post, I realized that here in my country many financial institutions are now implementing the same procedures. Even small pawnshops here have their own Know Your Pawner which is the same as KYC. I think this really has something to do with money laundering issues especially connected with drugs and terrorism, among many other factors.

 What a contentious issue everyone!  And glad that there are so many interested bodies in learning more about protecting one's privacy and freedom of choice. 

   As mentioned by many other folks, the larger issue at hand is the freedom of choice to do what one wants with their employment earnings.  You can invest in almost anything in today's day and age, and try and earn a profit on it, including Tickle Me Elmo's Dolls, Barbie Dolls, and even Postage Stamps, Hockey Cards, or whatever you want.  The main idea is that you get to choose what you want to buy and collect without having people breathing down your neck about your own particular purchasing styles.

The problem with Crypto is that it got a bad rep early on by people who abused the system, but this also happens in the regular commercial banking industry, where big banks are continuously being caught in white-collar crime and fraud activities, so the issue is really a moot point.
 

Have you heard about Alcurex exchange? 

It is no AML/KYC and links to Poloniex, Bittrex, and offers high liquidity trading for US residents, and people all over the world. 

alcurex works for me

The system is made so that it can be abused but only  by some people not all.
Usually when banks or such institutions are found to be guilty of something they find scapegoats to sacrifice.
The master minds are always safe. Is like in politics when some minister is found guilty of something
they resign or is "replaced" but usually after some time they end up on another function (position) again.

I do not think that any AML/KYC can save us from anything its just another form of control of the masses so that the "elite" can
stay safe in position of power.

Regarding the exchange I never heard of it.
It don't see there any option (information) how to deposit USD or EUR therefore they don't ask for any AML/KYC data if
a customer does not use any FIAT currency.

In their terms this this is clearly written that they could ask  AML/KYC data if USD or EUR is used by the customer.

this is great info for btc buyers and sellers! this helped me alot!

I  don't get it, so If I use a service that has AML, and I use it to transfert BTC into EUR.
My government get the infos ?

For exemple : If with mining I get like 5000$/year, does I will be asked to pay tax because the trading service will have send the infos to my country government ?

good

They could get the info.
Depends on the tax law and other laws that you have in your country.
I doubt that they send info automatically for every transaction that people make.
Usually banks and other financial institution have software that tracks the incoming and outgoing transactions of the account.
So if the software detects a strange transaction pattern on the account than this account could get reported to
tax or other state authorities.

Can someone be imprison in making Laundering Fiat money and converting it to cryptocurrencies .What if your country is not in the lists of this AML/KYC the one who will commit it will not be punishable by law?

Of course it can be and again it depends on the law in that country.
If there is not any law that regulates the issue than it won't be because in this case this won't be a crime.

For example take look at this:
https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country

In some countries is forbidden to even use crypto currencies while in others is legal or not restricted.
Also person could be punished to do money laundering or being a "financial mule" by using his own bank account(s)
to transfer money  to 3rd parties.

Regarding the list of stricter KYC compliance, you can add www.Quebex.com. (Canadian p2p Bitcoin exchange)

is there any web provide all security tools for any bitcoin exchange business website ? eg.

1 - id verification manual and api
2 - sms verification
3 - 2 factor auth

i know there many websites like jumio charge per check. i am looking for cheapest solution under 1 roof or are there free sources available ?

please guide

Thanks for this explanation. Helpful stuff.

AML is a Anti-Money Laundering it is use by the bank or other financing institution to know if it is the cash/BTC where from the legal/illegal job.
KYC is Know Your Client it is use to verify the identity of your client.

Just yesterday a French startup was punished (80K€) by ACPR to not identify 34 customers for the use of bitcoin exchange services.  ::)

There is a very serious risk associated with trading on exchanges.

If an exchange suddenly updates its KYC rules, and you can no longer meet those requirements (for whatever reason), then your funds will be permanently seized.

Good luck to any foreigners trying to get BTC out of Bitflyer in Japan.

My BTC on Bitflyer has been seized for over a month, with seemingly no way to withdraw it in any form, and no explanation from Bitflyer (they haven't answered my last 5 messages).

Dont even look for this kind of service. KYC is common procedure for all online business related services.I faced with this rules when i opened my first  gambling account. Sometimes they ask for selfie with your id. For example Cex.io exchange has really disturbing KYC rules for new customers. They ask for tons of documents and selfie with your documents which in front of monitor have to be cover of this exchange :D That's really "more" compared to other exchanges.

If you are a big enough fish, they can find you. I would venture to say if you are doing those type of transactions, on a regular basis and catch their attention they will go to great lengths to find and lock your funds up. The US treasury can lean on any country in any way they deem appropriate. KYC/AML is a big deal. Dont fuck with them.

The guide is very an easyt-to-understand one. I saw KYC and AML terms in white papers and then I made google search about them. But the results were not simple. Your explanation is nicely done thank you.

That's the argument the government uses, don't fall for it. It's actually all about control. In the USA the Department of Justice created the modern asset forfeiture in the 80s with the intent to actually get large drug lords. This has turned into a nightmare of even local police able to confiscate nearly anything they want and force the citizens to have to fight to get their own property back - at their expense! It's so bad that the head of the department that created asset forfeiture as we know it, and his successor, have spent years trying to stop the practice.   I view the KYC rules in the same light... far overreaching rules that hinder the rights of the average citizen.


https://www.washingtonpost.com/opinions/abolish-the-civil-asset-forfeiture-program-we-helped-create/2014/09/18/72f089ac-3d02-11e4-b0ea-8141703bbf6f_story.html

Also even our own government didn't use KYC when they were giving suitcases of money - 12 billion USD - to who knows who in various hotspots around the world....
https://www.theguardian.com/world/2007/feb/08/usa.iraq1

KYC is everything that is wrong with the block chain is it not? no privacy or animosity ! Dont get me wrong i am all for the KYC.

This is such a nonsense, you're really controlled at the end of the day, i hope we will not get same issues with coinbase or other exchanges operation in USA or EU

If you trade on exchanges, your coins are always at risk as far as your anonymity goes. If the exchange suddenly changes their AML and KYC laws, and you cannot comply, say goodbye to your money. Many people told others to just use a fake id number on okcoin, but now sometimes they require you to upload and verify to withdraw, which they know many can't do since they numbers don't match up. Bitflyer has seized my funds and won't let them go :(

Dealing with exchanger is the common thing to consider when doing trader because it is the actual way of earning on trading and it is the only way where you cod now whenever to have an option on regards to the value of Bitcoin and also the transactions in the block chain that always affect bitcoin development.

Chase is getting worse with cash deposits. They now request your ID when putting cash into your own account. It's a business account, businesses take cash for work. Oddly enough if I use the ATM and do a cash deposit no ID is required. Or a night deposit.  Go to a teller and they'll need an ID. I tried to ask why big brother was so bothersome, the last teller had no idea what I was referring to by big brother.

The ID is not required because
they have a camera there and they can send your picture to a service that can identify you from a image
if required. ;)

Also if you have some card or magnet key that you have to sweep over
some sensor to open the ATM box for depositing cash
then you are already identified.

You don't have to wary is all done for "your safety"  8)

Thanks for sharing,

But i think that Aml/Kyc it's just a formality & does Not protect anyone from being scammed. As you all must be knowing about MtGox, the biggest fraud done under Bitcoin World, and even it was complied with Aml/Kyc laws. But this Aml/Kyc does nothing other than shutting down the small Enterprises and other small minded Business who trying to survive here & there. Its just a LOOPHOLE to Escape.

Of course is LOOPHOLE.
This shit is made to control common working people not the
Elite so they can seize your hard earned money in case you rebel.

So what about Panama Papers?
It seem all legal ;) Nobody is mentioning anything like it never occurred.

The Panana Papers didn't have many from the USA in it, was mostly european. I've heard a few passing comments on some getting in trouble but that's not where I get most of my news.

Almost every company , lawyer etc needs KYC today in order to work with you

What about bittrex? Does the exchange comply with Aml/kyc? I am very loaded there and the fact that they never had any issues makes me complacent.

Almost all Chinese exchanges required it since last year, I think

Usually, banks institute these kind of rules when something has gone wrong - so I'm guessing they had someone deposit a bunch of cash who shouldn't have, and they got chewed over by the govt over it. The response of the bank is always to do arse-covering so that in future they can't be chewed out, and that's how these draconian rules get started.

Look if they become big enough - and to me they look like they will - cryptocurrencies will have to have effective KYC/AML incorporated in some way. I don't think governments will care if it's at the exchange level - so every exchange does a reasonable job at KYC - or however. What they will care about is not having a significant percentage of financial flows - rather than the tiny and trivial percentage cryptos represent now - happening without them being able to know who the recipients are.

To me it's blindingly obvious that terrorists funders will - probably are - use cryptocurrencies to fund terrorists. This can't continue as cryptocurrencies  become increasingly adopted. There will have to be identification of people on each side. Just wait until half a dozen people are murdered in Paris, or Berlin, or London, or wherever, and the investigation shows that the attacker was funded with Bitcoin. The regulators won't play games then.

Just my view, possibly wrong.

Very good article, thank you!

Ya but I look forward to how it will be attempted to be applied to cryptocurrencies because it is very hard to get someones private keys and force them to move it.

haha of course people that work there aren't going to know what big brother is, they are part of big brother. But yes absolutely they are great at covering up.

Interesting article ;D

I have been exposed to the system of KYC and somehow i find it a bit uneasy, since i have been ask to take selfies
, just to prove that we have possession of the card i think... when i rarely take a selfie :-[

That is pretty odd (even as kyc goes) but I guess if you run a web only operation where you don't see your customers in person at any point, what other option would you have...

The good thing about this aml/kyc stuff is if you aren't doing anything nefarious you USUALLY don't have anything to worry about. I say usually because governments (esp US govt) have been known to seize large amounts of money first and ask questions later. When this happens to legitimate people it's disgusting. They usually have court battles they can't win because the government took their money. Not trying to scare anyone but be careful. Also google "innocent civil asset forfeiture" to read more about this crap.

Hello Guys,

I am currently working on my thesis regarding Anti Money Laundering Law. I find it hard to come up with a legal research question which combines the ''Know Your Customers Policy'' and AML from a corporations perspective.

Are there any suggestions on a specific research question regarding this topic?

Thank You

Desperate Student1

Yeah you are correct, it was from an exchange, and it is web based.

But still, I can't comprehend why need such measure. I think they ask both picture of the credit card, plus picture of the individual holding the credit card. For my opinion, a single verification is enough. and individual holding the card is sufficient enough, i think.

Owh yeah, i been wanting to ask..

When does the AML/KYC has been implemented? because i only have heard it since i get involve with cryptocurrencies.

I suspect it must been new, or it is an old system. just my daily transaction called the system with another name

Hello everyone, i am a trader looking to buy large amounts of BTC / ETH / LTC
Anyone who wants to sell at the market price please contact me: robert.arneil@yahoo.com
We also trade Bitmain Antminer.

Thank's
Robert

Loose or non-existant KYC policies:

BTC-e   (??)
Crypsty   (??)

 ::)

You effectively need a passport/ID, a utility bill and a bank statement in the United Kingdom.

That covers off most KYC checks.

These two are the things that are killing it for me, because I have really neither. I just pay in cash for my accommodation, which in many cases is a hotel, so it includes every possible utility I might need. This in turn means that I won't get the needed documentation, so I'm totally out of luck.

I've spent the last decade living like this without a hitch, but I reckon it's about time for me to move back "home" and start sleazing off of welfare, because all these monkey tricks are no more worth it. I've already effectively lost my Payoneer account which I've had for years, and about to lose my PayPal account which I've had for a decade due to this crap.

It was implemented in USA at beginning of 21 century (2001-2002 y.).

Most likely you heard about this for the first time, because you did not work closely with financial institutions before.
And the theme of money laundering through the crypto currency is hot.

All of this is for the government to control you.

AML/KYC is needed by the governments, it should be applied right now to the emerging ICO. SO people will not worry about their investment. AML is very important to every country in the world. yes because the daily transaction that we gather money from which exchanges coming from or illegal way to use bitcoin.

Decentralized exchanges when

can someone explain why eth market capt 25 bil and other coins like dash ten times smaller but the coin like $300 , eth have 2000 developers around the world wanted to put dapp on the Eth network etc... then why the price seem like <300 most of the time

KYC/AML discourse is a very dumb one. The core idea is to track money to fight crimes. It is a lie, you can't remove or even reduce criminal activities by tracking money, it just opens another criminal line of activity: money laundering business.

This is it, nothing more, as long as it relates to crimes. It is so simple: I commit a crime then pay you to wash my earnings, so you commit the second crime and this way we have shared the revenue and doubled the crime statistics, now AML guys come along and you have to pay them a piece and thus we have done a 'hat trick' with just one ball, good job, Thank you AML!

On the other hand  it is a very dangerous tool in the hands of very dangerous people: governments. They sniff and violate privacy of citizens.

Lastly, an almost new phenomenon worth mentioning: USA/Israel governments have a lot of competitors, rivals and 'enemies' to deal with in the Middle East. Recently, they have fallen in love with AML discourse because they have found a magical trick: name everyone you hate 'terrorist' then push for AML restrictions and weaken him, then in the right moment, invade and rip the poor rival! Isn't it genius?  Hezbollah for example is a Lebanese group who resists against Israel invasions (they used to invade Lebanon whenever they feel bored), now guess what? Hezbollah is the head of all terrorists in the planet or even in the galaxy and AML is the most effective weapon to exterminate the group. This guys are brilliant, AML guys, believe me. They sold 100 billion dollars worth of weapons to Saudi Arabia (the worst kind of a regime one can imagine in 21st century at least) few months ago. Do some math and ask: which money is clean and which is not.

I’m nore interested now to have more knowledge  of this stuff guys !!!!! I research more all about this and I come back with the answers ,,,

Good piece of article, KYC and AML is crucial for financial companies be it financial institutions such as banks, forex brokers and others. it assists customers from loosing their money and also from illegally acquired money being injected into mainstream economies

This is very informative, i like trading on an exchange site that requires kyc

I’m always really interested to the trading my only worry I really don’t have much knowledge to navigate  wish I have a knowledge that what you had guys !!!!

Anti Money Laundering and Know your customer policies are initiated by accounting and financial institutions to check customers source of funds. Bitcoins block chain technology aim to reduce these 2 policies by making transactions anonymous. However, Bitcoins exchanges ensuring strict AML and KYC policies defeat the aim of using Bitcoins as anonymous currencies. In my view, Exchanges should relax these policies in order to set block chain technology apart from mainstream banking .

Really interesting and mixed views here. KYC does seem to defeat some of the objectives of cryptos and lean towards a government regulation instead. Maybe its just part of the transition? Half way house?

Although from an etiologic point of view, asking about origins of a term is a common practice but it is not always the best or a complete approach to understanding it comprehensively. Instead it is always useful and enlightening that you try figuring it out how it is used right now.

So, saying 'accounting and financial institutions' invented KYC/AML discourse is not only a false statement (security/intelligence sector did it) but also misleading and confusing. It is misleading because 'washes' the term by pretending it to be a product of technological/scientific development and confusing because it remains silent about the political nature of KYc/AML discourse, the way it is being manipulated by power to be used against people.

The ultimate mission of cryptocurrencies is to deconstruct this term and protect people (and not just the white, rich, citizens of the USA or Europe) from government/accountants/financial institutes sniffing in their private life.

It is good to have governments to fight with drug smugglers, we don't have one though. Anti drug agencies are practically a part of the drug trafficking, playing their role, getting their share.

Fighting terrorism is a sacred mission to accomplish for governments, they don't. They plant terrorism, finance it, equip it, arm it,  everywhere and everywhen they find it (foolishly) useful. Governments use this label as an accusation against  their own puppets when they get out of line or against their rivals' puppets or (more oftenly) against ordinary people, intellectuals, resistance organizations (like Hezbollah in Lebanon) , ....

It is very interesting that instead of asking about where the weapons  or the drugs come from, these hypocrites, KYC/AML proponents, advertisers/imposers are asking about the money.

As I have mentioned earlier (in this topic?) tracking money is a business and nothing more, I pay someone to 'wash' my money and government pays someotherone to play cat and mouse with me.

 

tks ad

The only motive for regulating the circulation of money is the collection of taxes. You can buy and sell anything - just do not forget to give a share to the state. It is foolish to think that the fight against money laundering will somehow prevent terrorism or the work of cartels. So the next couple of years, officials will only think about one thing - how to regulate blockchane and to destroy the anonymous transfers

This is needed to ensure that people are not using mis appropriately and are helping in money laundering in any way. They have been being used in current finance industry and helps keep people with wrong intent on bay

KYC will be a big problem for a lot of ongoing projects. I see the SEC hunting down a lot of projects because of missing KYC.

But what if the info in KYC is not correct ?

I was wondering the same.

What is the procedure to verify a person i mean documents?
How they do it?
How they know that the supplied data is not fake or from another person?!

Good thread with valuable info, thanks a lot !

thank you sir this will be very helpful for beginners like me

Some cryptocurrency based exchange platform, does not posses a strict KYC policy. I think that KYC policy is only needed if the amout of withdraw and deposit is high for a particular span of time, a month or 1-day period.

KYC is a good policy, but user and customer have the tendency to be frightful that their personal information may leak and get into the wrong hands

Thank you very much for letting us know about the verification process.

I guess the point is not the corretness of information in KYC but the fact that you organized duly the process of KYC monitoring. So if one day the police comes to you, as responsible for KYC, and asks questions about a John Smith you can show the documents you have. You are to do your part of business. But there are some good services there that can make a pretty good job in verifying peoples passports remotely. They can say if the papers are fake or not

The details you have given about KYC and AML are awesome, it can be understood by any person who has the ability to read in English. Congratulation and keep doing this kind of post.

1. It would be valuable if we'd know how long does it take to get approved based on which country the individual is from... Essentially based on which country his/ her docs originally come from.
2. And also what kind of docs each platform requests for commercial/ business account. Therefore with that it'd be reasonable to have some info on the limits on transactions (real limits, for example when the administration of any platforms hesitate to allow using the funds and keeps the transaction in pending etc. ).

That's a whole research there, but it's worth it for the crypto users.

Hmm, that's interesting. Let's make a rating of KYC terms and times it takes to verify. We can begin with the top 10 exchanges.

What is the importance of AML and KYC ? I mean some new users have a hard time doing and verifying our accounts. Like what if I dont have any Valid id or passport ? Then I cant verify my account ?

Not only that.
Some want that you send also an utility bill or something with your name on it beside the ID or passport.
What if you do not pay any utility bills then you are screwed even by having valid passport or ID.

Is there a good list out there of KYC requirements and thresholds by country?

I saw a nice source at Pricewaterhouse Coopers. There is a PDF quick reference guide about KYC:
https://www.pwc.com/gx/en/financial-services/publications/assets/pwc-anti-money-laundering-2016.pdf

v

AML / KYC is an institution that aims to eliminate levels of corruption and trade regulations that contain AML risk management and compliance (GRC) in the form with the objective of minimizing reputation damage and risk exposure. and contains a service to meet the requirements of AUSTRAC, Anti Money Laundering, FATCA, OFAC and reputation reputation risk management and due diligence of business partners. as is the case with KYC with the same objective and in my country there is an individual institution that oversees all financial matters whether individual or a corporation with the same purpose of removing corruption and money laundering and other criminal activities. on the one hand there is a positive side that can be. but the question is all of these oversight agencies, will they be able to protect a crime from bitcoin users who are very difficult to detect as well as other fraud and crimes. I think there is nothing wrong as long as it does not aim to make it difficult for bitcoin users who do not commit a crime.

Hey I'm new to this discussion what is this group all about?

Does anybody know any KYC/AML service provider with clear prices?

Do you know any ICOs that requested KYC procedure for sending crypto? I mean I know some that request it if they accept fiat (e.g. Naga did). So would be know what your experience with KYC during ICOs was

Hey Guys,

As KYC is now going to be widely used in ICO's all over the palce and requireming them to all have a copy of some sort of proof of identity.
Currently nowhere I can find a retention period on how long they are allowed to maintain the documents. Further, I have not found regulatory policies on what is allowed to be done with them.

As stated in an ICO they are intending to use the data, for example,to improve their website.
To what extend is the use, of the data provided, limited or are there clear privacy rules on this?

The reason for asking is that this is now a global issue, in specific countries it is clear what the legal privacy policies are.
Can I assume the policies on privicy will be applied as maintained in the country from where the ICO innitiative is started?
In that case, (extreme example and not knowing the official legal policy) I will never invest in an ICO started by a Nigerian prince!

ENVION is doing KYC with ETH and BTC payments also.
although KYC is a good thing, I do have my concerns as shown above

True but OTP verification is still king. I don't know anyone who can hack phone messages remotely.

How come these policies can be adapted to ICOs and others projects with blockchain technologies?

https://i.imgur.com/BDt0IoZs.jpg

AMC / KYC is a very confusing process. Some companies, such as ICON and UTRUST, applied for their passport and said that their national identification and driver's license would not be accepted. But they changed their minds after many complaints.

Anti-Money Laundering (AML) and Know Your Customer (KYC) initiatives have emerged as important focus areas for financial institutions. Hefty penalties for non-compliance, challenges in acquiring the “right" customers, emerging digitally empowered competitors, and thinning profit margins are forcing financial institutions to reimagine their AML and KYC programs.

Genpact's proven experience of running industrialized AML and KYC operations for financial institutions globally, including several Fortune 500 clients, enables firms to augment operational efficiency, optimize processes, and improve compliance.

Good to know! Thanks for this post

Thanks for the information, it's good to know more about this as i see more and more ICO asking for KYC and AML, also more and more exchange are asking for it. I hope they wont use our information for bad uses.

This platinum crypto exchange does not require ID's and has the best platform, and good reviews:

https://bitcointalk.org/index.php?topic=2667100.msg27203578#msg27203578

Thanks For The info makes things a lot easier :)

AML/KYC is the best and ideal thing to do to prevent being scamed and why we should ignore this? For me it must be implemented if it is the way to avoid scammers.  ;)

Could you explain me how this would prevent me from being scammed?
If I do KYC to a scammer, I would still loose my money after investment...

KYC to my believe only serves the purpose of preventing criminal investments to be made into ICO's

For the US, I recently came across this article which lists ALM and Customer Account Information retention periods as 5-6 years after the account is closed:  https://www.finra.org/industry/comparison-aml-customer-identification-rule-and-secs-books-records-customer-account (https://www.finra.org/industry/comparison-aml-customer-identification-rule-and-secs-books-records-customer-account)

More any new coin also verify KYC:
- thekey.vip
- Hdac.io
- Fintrux.com
-

Is anyone already using these? I know a project, called FreeZone (Freezone.one), they are going to work with AML and KYC. If anyone can check and tell me how real this is, it will be cool. The main idea is to give companies an opportunity for running crypto business legally in one country.

Is KYC know your customer ?

This is awesome. To add, Projects in their ICO phase also engage in "Know Your Customer "(KYC). So investors should be prepared to Disclose their personal details to be on the safe Side

I think this AML/KYC is somewhat important yet can hinder also in the bitcoin growth but it can hinder as well illegal transactions here.

Actually I think that soon the majority of blockchain businesses will use AML and KYC.

The thread is eye opening. Authorities have been interested from the very beginning to get an insight view into the coinmarkets/holders and have been wondering since how to best sez up tax rules etc. So it was just a matter of time until stricter rules for the exchanges were set up, no matter if they do not exchange fiat vs. cryto.

KYC issues I don't really know why also this happen this day, but I think their is good reason for introduction of kyc. Also, on the part of KYC body let the verification be fast so that it will ease people.

hmm very bad

I don`t feel really safe with all of this KYC procedures. I am participating in many ICOs, many KYC.
Too much KYC, too much documents I left all over the place. And I wouldn`t like to be misused one day.

Totally agree it's all a bit questionable with passport photo's, driver licences etc. all floating around.

What is the important of kyc? It is just waste of time during ICO. The main important thing is that you should tell the participate those countries that can not take part in your ICO.

Maged once again I have looked up what you have put together here and read through it. Just wanted to say thank you for this highly informative text, which nowadays will play a rising role and of course also in the way clients will evaluate exchanges and their offerings and how they deal with their personal data.   

Is KYC really neccessary?,. I don't feel good at it, maybe because, there's too much documents to provide,. witch is really unsafe for whatever accounts that we have. passwords for example, it can possibly be traced using all the information they gother., maybe a valid Id will do. just for a bit of information of you client.,

If you trust the Company, and it is really for the safty of the account, Exert effort, do research.
CoinLion will use KYC processes and comply with AML (Anti Money Laundering) laws. CoinLion
provides quick and easy identity authentication services. With a same-day identity verification
policy.

KYC is important with banks so to know the information of a person wether all his money that he got came thru legal or illegal matters. With that, its easy to know if a person commit crimes that involves money or cryptocurrencies which will be the solution regarding the anonymity feature of the majority of digital coins. As per AML or Anti Money Laundering, this is to prevent illegal hoardings of coins which again, came out for heinous crimes such as drug related, syndicate, fix gambling, etc. It doesn't mean we don't have control of our coins, it's just that it will monitor each person's holding assets that will make the digital economy fair and safe to invest with.

Honestly, I am really afraid with this KYC thing, what if they are going to use our info against us or maybe they have some plans about our data in the future. But with the recent trend, especially joining ICOs, they now require KYC. I am afraid but I also want to make money. No choice?

Did anyone see the SimpleToken ostKYC announcement? Is this something that will be of interest for other ICOs? https://medium.com/simple-token/introducing-ostkyc-the-complete-kyc-whitelisting-solution-for-icos-powered-by-ost-8027728df59d

that would suck....so much for anonymity

The KYC/AML/money transmitter/fincet stuff makes the barrier to entry high for new exchanges and the like to come online; a service which handles all of this for new businesses so it only has to be done at one place and can be used everywhere else would be "top shelf."

Really helpful information for the newbies like us. To be honest previously I didn't know actually why KYC and AML for. But now I know it is a MUST for our own security. Thanks for this information.

very nice work thanks dear 8)

Can you explain a bit further what this means. for the future of exchanges and trading ?

would there be some such point where users will be removed for non-compliance even if they have an active balance

and how would decentralised exchanges work if there is not way the user identified themselves talk more of a kyc

Is KYC now mandatory for all new ICO.. seems every ICO now is implenting KYC..

Is it better to go for ico or wait for exchnges

if anyone is looking for a great way to keep up with bitcoin trading on the go try this app out! works great for busy people like myself..http://aa1f1djq5joa9y83x1zki-gu1z.hop.clickbank.net/

(AML) Anti-Money Laundering and Know your customers (KYC) they have emerged focus area for financial services to institutions. It's good to see the implementation of AML/KYC in ICO's which helps the organization to prevent fraudulent transactions.

KYC is good. But frauders are intelligent they know how to  protect themselves. They know how to keep their real identity. They can scam if they want.

Thanks for pinning this thread.  I'm quite nrw to this KYC.  I have a lot of questions answered by this thread. More and more projects now are using KYC. This only shows that developers really is concerned with the investors safety.

thanksss for explain

Good thread and well explained.

It's funny though how so much regulation is tied to something that was supposed to be decentralized and anonymous.
Plus, I don't remember when was the last time any company asked me that much personal/financial information.
Seriously, GRAND THEFT ID waiting to happen when somebody decides to hack the exchanges.

Aml is necessary for everything that involves money transactions. It guarantees the government that there is notjing being violated against the law and it could also be the gateway for tax collection since government can get involve on the picture.

Very informative thanks ~

I am thinking of helping my US friend open an account with Bitoasis. But it seems that US citizens cannot open an account? Do anyone know of any other middle east exchanges?

It seem that the LAND OF THE FREE won't give freedom to his own citizens to spend
freely their "own" money therefore all exchanges and ICO-s around the world are refusing US citizens.

What you could to to help him is to open an account on your name and give him access.
But it should access them over VPS because i suppose US IP addresses will be blocked and account frozen if they find out.

Great thread, very informative, thanks!

Any exchange requiring minimal KYC accepting Euro?

This has become the standard AML/KYC thread for the crypto space.

Thank you very much for providing Valuable information... but i am bit confused on how they are checking the accounts engaged with AML? is that finding by the country.. which was banned..?

You could try Kraken tough many people are complaining that the verification process lasts to much
due big surge in user base.

Here you have a description of the verification tiers and data required:
https://support.kraken.com/hc/en-us/articles/201352206-What-are-the-Verification-Tiers-

In case you register there and want to complain about something:
https://bitcointalk.org/index.php?topic=290799.0

Very good information. Thank for your post

Some Bounty are finding KYC when participating in their ICO sale just to make sure that the participants are not from the country restricted in their campaign.

I am community manager at Quoine. We are the first licensed crypto exchange in Japan. We are using KYC and it is strongly required by FSA. As per my mind it is absolutly normal and I hope will be used by every exchange. But one point. If you send copies of your ID and statement to not licensed exchange.... Are you sure they will not use not on purpose... Can you be sure about  " that side" ???

Thank you. I already have an unverified account over there :)

Any chance we'll get rid of KYC and AML anytime soon, for ICO investors? It's annoying and frankly if there's someone that should be KYCed and AMLed, it should be the ICO team.

It's an invasion of privacy in my opinion, but the world is controlled by man made laws, and this is how they maintain that control. If everyone was free range and able to do whatever they please, they would lose control. This is why BTC is attacked, obviously, and why ICO sales have been using KYC methods that are a total invasion of privacy. For example, Eximchain wanted to gain access to peoples GMAIL for the recent ICO. I mean wtf was that?! Also, the majority of these ICO's have reverted back to VC funding, so it's all private and the only public decentralized aspect of it are the airdrops, but even the airdrops are requiring full ID checks. I think Blockchain technology can end up becoming incredibly invasive. It depends on the project.

I think that decentralized exchanges have good chances to make trading kyc/aml free, however how authorities would react??

Do KYC and AML related to some jurisdiction or doesn't matter country/state? If so, how the average user can find what is required for instance in Ghana or Algeria?

KYC/AML is related to jurisdictions, however there are international rules that countries have to follow to be compliant. Usually FATF establishes such rules. In addition each bank should have its own KYC/AML policy

will personal information of users be missused or stolen?

Is it imperative for institutions to conduct their own KYC and AML (perhaps in terms of regulations such as SOX, HIPAA, Basel etc) processes or can they outsource it to bureaus which offer such services?

Now this innovation is very difficult, to be honest. And does not cause trust. I try to take part in projects that are completely sure. Of the latter, it is SAFINUS. I did not encounter any problems.

All KYC and AML does is put tons of innocent peoples information all in one spot so the hackers can find a jackpot of information. It happens over and over and over again with centralized parties and this will not be the one time when that doesn't happen.

Precisely. Also even you or I could make an ICO and harvest and sell the info we aquire. They work about $100 each so if you get 1000 people you have $100000.

KYC is against crypto. Noone needs nor wants it.

For me, KYC is such a time consuming process. As a investor, I want to hide all my information specially if I want to buy a lot of token. I am much confident if they didn't know my identity, cause less info, less hacker resources. But most bitcoiner said, it's a company privacy and rules. That's why I cannot skip those step by step process this past several month.

I strongly believe that KYC/AML doesn't help to prevent Money Laundering.
What if they use our private document for other purpose ? How could we be sure that our document will be deleted after they finish reviewing our personal info ?
The key point of Bitcoin & others are to protect user information and it's a joke if we allow them to force people to submit their personal information to buy/sell coins.

So what makes exchanges like Airswap able to avoid doing KYC/AML?

Anti money laundering (AML) refers to a set of procedures, laws and regulations designed to stop the practice of generating income through illegal actions.Know your customer (KYC) refers to due diligence activities that financial institutions and other regulated companies must perform to ascertain.

KYC can indentified someone, it helps to control well. I like the exchange or ICO coin take the KYC :) ;)

Basic Definition of KYC as the name suggest KNOW YOUR CUSTOMER , its not at all complicated as I have seen some people are making it  its basically knowing  your customer and to know your customer you have to look at his original and authentic documents and verify it by an institution where that person has some area of interest in aspect fo life. its as simple as that.

Any information can be stolen or sold and then it will get to interested persons who can use it against you. Already, there have been cases when, under torture, their bitcoins were taken from people!

Each information might cost even more than $100 and if those people do tend to sell out those info then it would be an another source of income but a total mess up for those people who do sent their informations online.Im against with this AML/KYC policies which it is totally against crypto but well we do have the free will if we do proceed or not into sending documents.

KYC is a complete and outright invasion of privacy and an attack on human rights.

Its not because of showing IDs and passports, this is normal in any bank, and the exchanges would be no different, as they are centralized like any bank. But this issue about taking a selfie with the ID, and in some cases, even a note stating the day and hour the picture was take (as is happening with Binance right now, I had to withdraw my ether from there after I saw it) and they asking you, over and over again, for you to take another photo, and then another, and another, and another, because of "bad resolution" (as most cellphones would have to be professional cameras, used for artistic photography), and all the while, keeping your account locked, and, if you have money stored there, your funds blocked, all of this is a blatant attack on human rights, and is pure, outright centralization, a dictatorship ruled by G7 and its standards they took off from their asses, since they dont consider a lot of people, specially in third world countries, dont have cellphones with professional cameras. I had this issue with CEX.IO some months ago, in 2017, and I never traded with them again. At that time, that exchange was a exception, and a LOT of people were complaining about them. What I see now is this becoming the norm, and people are just complying themselves with it, like it was something normal. It is not, and I'm mad with it.

We need decentralized exchanges now. We need a P2P exchange inside a blockchain, that we can store in our desktops and run nodes for it. Dont you think they will not go after localbitcoins, because they will, and it will be the megaupload of bitcoin. We need a exchange blockchain NOW, this is urgent because Circle bought Poloniex, and Circle belongs to Goldmann Sachs. KYC is just the beginning of a long series of abuses which will force people out of bitcoin. All the while the globalists will create their own centralized cryptocurrency and persuade the merchants to adopt it. We will have 90% volatility in bitcoin prices, due to increasing speculation, and this will put away most of the merchants. At the end, only financial institutions, linked to the stock markets, will be able to trade in the exchanges, which will be highly centralized and controlled by some committee ruled out from the new Poloniex, all under the supervision of the IMF. I'm not spreading FUD. And dont start talking about tether printing to me because derivatives markets sells futures contracts on gold without having gold to cover it.

There are plenty of valid arguments for and against KYC. The bottom line is that this is a regulatory requirement for financial institutions and it's finding its way into digital assets. Businesses that comply with such requirements will have fewer potential problems than those that do not comply. Because of this, platforms that provide KYC solutions will be in high demand.

Now that I have begun the process of attempting to purchase my first Bitcion, I wonder if there is not a sense of irony in the Bitcoin community about the level of trust the exchanges expect from their customers.I think the real issues that people have with KYC/AML and the exchanges is the unreasonable level of info/trust they expect. I opened a dedicated bank account to route my funds through and their expectations in opening an account did not seem nearly as unreasonable as any exchange I have looked at so far. They didn't ask for things such as where I work, how I plan to use my funds, a picture of myself, passport info etc.

The ridiculous invasion of privacy that the exchanges are engaged in is clearly of their own design. In one reply to this post it is stated that each organization creates its own KYC/AML program, and that is obvious given that the traditional bank asked for less info than than the exchanges. If the bank can comply with these regulations while asking for a minimum of information, so can the exchanges. I am not trying to stay 100% anonymous. I just don't trust any third party with the info the exchanges are asking for. It seems to me the end result of Bitcoin is that third parties are expecting more trust and information than before Bitcoin.

It seems to me that the promise and purpose of Bitcoin is dying or dead...

Hello everyone, I think this is kind of crazy, that each second project request your personal data, including scans of your docs.
The major idea of cryptocurrency inspired me with its anonymous holding and trading. And I don´t like this tendency, hope in next couple of months everything gonna change, cause I don´t wanna find my personal data somewhere in dark net. What do you think guys, how we can insecure us from KYC ?

The only way to do that is to stop using FIAT money where is not needed.
Stop using bank,  credit/debit card services.
Stop using centralized exchanges (Bittrex, Poloniex etc..) and any other service that asks you for your private personal data.

Decentralized exchanges and other decentralized applications will be the only solution to that problem.

Yeah, but still the cryptowallets are not strong enough to hold the mayor part of your savings. We cannot pay for regular products with crypto,
and that´s why we should convert our cryptoearnings in FIAT with the help of banks and exchanges. I think we should wait for a little, when we will obtain
the currency with fast transactions, high level of protection, totally anonymous, and the most important thing with high TRUST level from the society, people should be able to buy and sell everything and not be afraid that tomorrow or in one week all their income has been decreased in two times.

But, you are right, that we should try to avoid the resources with KYC as much as possible.

KYC shoudn't be compulsory on big exchange like CoinBase, they should allow and add limit to Non-KYC users like Binance has done

You are right, but people will not do such. Decentralized exchanges are not popular and comfortable in comparison with huge centralized exchanges. It is like FidoNet and Internet ))) ( hope somebody can remember what was actually FidoNet haha)

They are not comfortable for sure right now but as the technology advances so will the the exchanges
and I hope it won't be so long until someone build a decentralized exchange that could be comfortable and easy
to use like the current centralized exchanges.

This is the users perspective and something we would like to see. We like our personal data to stay anonimous and confidential.
But from exchanges perspective who are under big pressure by different laws and regulations this is impossibe if they want to run legitimate business. Otherwise they risk a lot and that is not in their best interest.

I dont belive in somebody who will build  once. We have such exchanges as Binance and Okex and Bitfinex with billions day volume and millions of participants today. And I think those exchanges will be do everything to have the same quoality of busines as long as it is possible...

The point is that they don't have to be nearly as invasive as they are. I opened a bank account specifically for buying cryptocurrencies and the bank didn't ask for anything like what the exchanges expect. The exchanges request more information than they need. If the old, stuffy banking institution can comply with KYC without asking where I work and what I plan to do with my money then so can the exchanges.

It appears that AML/KYC are for business-as-usual type of solutions. The true decentralized and open blockchain do not require any of the KYC stuff.

Notice Binance not on the list of KML compliant exchanges. Makes sense considering recent events.

If we being very sincere with ourselves and logical, the KYC/AML request are a necessity in today world, because of the reasons clearly stated. Its a fact that there is terrorism financing, human trafficking and sex slaves, drug dealing etc. If we are good people at heart, I believe that we would like all these stuff to be stopped or eradicated totally, but now cryptos anonymity has only created a big avenue for these things to thrive.

That being said, I don't like my personal data in hands of millions of random people and companies. Already we are suffering from "targeted adverts" to a phones and email, after webiste have promised not to share our personal data. So yea, I can't really trust the KYC/AML words for it. So I guess is a tough one, "universal gain vs. personal gain". A better world with more transparent dealings or a worse world but you (we) the individuals safe in our own small corner - in the end the chaos will reach your doorstep.

What i'd love the most genius cryptographers to come up with is a system where we keep our anonymity, but we can meet the requirements of these KYC/AML to ensure we are not doing illegal stuff... May The Force BE With Them.

I fully agree with you and my experiences relate. I am also trying to roll out an ICO that will make decentralized ID's possible. So in essence you would only need to perform KYC once, and as soon as all checks are done - your documents and the like are deleted, which means there will be no centralized storage of ID or data. If security is breached - intruders will have access to nothing but the blockchain TXs (elaborated on further below) which is futile as it would already be in the public domain. The onus would rest on you though to ensure that your device (PC/tablet/smartphone) is not vulnerable.

* If your (hypothetical) address is: 1234 Crypto Street, Cryptoville, Cryptania
* Your date of birth (derived from ID/SSN or equivalent) is: 01/01/1980

Any other entity that would require KYC should only know that you are from Cryptoville, Cryptania (street address should not be necessary) and that you are 38 years of age - no "specific" info will be divulged. We would simulanteously check if you are on any PEP/terrorist/other crime related lists and have just an atomic value of Yes or No. Once KYC is successful - we issue a cryptographic identity that can be used any other place where KYC is required as we would "vouch" for the legitimacy of your identity. Even further should an entity need to access your profile - they would need to have undergone KYC in the first place, and then you can either accept/reject the access to your info. These requests will be written to a blockchain so that there is transparency and a proper audit trail. This is the jist of the propsed system - I have omitted the complex cryptography and smart contracts behind the concept.

Hopefully the crypto community will see the value behind this venture and support us so that it can be implemented successfully.

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Thanks - great write-up. Interesting how this applies to token sales rather than exchanges/other services. Exchanges are dealing directly with fiat, so it makes sense for AML/KYC.

In the case of a token sale, surely the seller is basically selling a digital asset that has some future utility? Furthermore tokens are almost always bought with other cryptocurrencies, not fiat, so why does AML/KYC apply to token sales? It seems strange to say that a token is not an investment/security and then apply the kind of controls an investment/security has to it?

If I buy an ebook (digital asset) and even pay with fiat, there are no such checks. So why are these checks being applied to token sales?

Know Your Customer or (KYC) is a requirement in the process of adhering to the preventitive measures necessary to monitor money laundering techniques used by suspected parties. It involves questions by a banking officer or principal of a firm which allows the officer to ascertain the primary source of funds which are being used to carryout a financial transaction.
The Financial Industry Regulatory Authority (FINRA)
is responsible for making sure all financial firms adhere to the “Bank Secrecy Act.” The Bank Secrecy Act has implementing regulations which amount to “Anti-Money Laundering” (AML) rules. The AML rules are in place to help
protect and report suspicious activity regarding financial transactions. It mainly focuses on those actions which predicate money laundering, terrorist funding, market manipulation and securities fraud.

The set of procedures, rules and regulations which are designed with a view to curtail the money laundering or criminal use of the financial institutions is called Anti Money laundering process. Many measures are developed across the globe to curtail money laundering and combating terrorist financing. While KYC is one of a anti money laundering procedure or a small part of AML and Combating Financing terrorism (CFT).

KYC means know your consuser.it is a effective way of getting tokens or coins. Kyc is an anti Cheater activities in AIRDROP and bounties.

This is all amazing guys but why KYC/AML is still so centralized? I mean common, blockchain is used everywhere and still we have to send over Internet our passports, driving licenses, utility bills, etc. Any ideas how to  get around it? There must a company to offer decentralized KYC services.

Ya, Selfkey is building decentralized platform to do KYC/ID without a need to send your docs over the network.

The subject is really interesting, but I think it should improve some aspects, or possibly they are not very well explained and people like me do not understand well because we do not live in an environment where that is imagined feasible.

Nope, this wouldn't function. Not from the personal data protection perspective, at least not in Europe.
These are all your personal data and they can't be shared and distributed without your explicite consent and used for exactly defined purpose. The regulation is rather strict concerning that issue.

What about this?!

https://www.civic.com/
https://www.icopass.id/

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We can see that the ICO projects in 2017 are very well developed and have very successful projects such as brilliant REC, HXT, CMT ... These are all outstanding projects. But in addition to those projects, there are also many failed projects and can not call for capital success. Now, the market has developed and requires buyers and sellers to implement KYC so that they can improve their credibility and verification of their projects, avoid virtual registrations. virtual bridge.

I justed learned the AML procedure from you article, thanks for that. I really like and support KYC process. This is a nightmare for the multi account owners. The best parf of this enable a fair bounty distribution.

Several months ago I made certain that some projects that need verification are very uncertain. On the question to the manager: "So, when I will receive my tokens?" I've got an answer: "We don't have official announcement yet." A lot of people I spoke with believe that project failed. So KYC doesn't always guaranty reliability.

I think you are in the know of how financial institution works and talk candid - the combination doesn't come easy. I am related to financial institutes in Australia and I'm a bitcoin early-adopter/supporter/consultant/journalist. If you take out large amounts of cash, they report on you also.  Account mangers have to audit any flagged account, based on a set of hush hush rules, and report. Like if you deposit as little as 2000.00 in cash, if that's not normal for that account

I am not making a statement one way or another about gun control, just using it as an example.  Gun control rules create a set of circumstances that means law abiding citizens have fewer guns and criminals have more. The financial institutions are agents of the government and AML/KYC is one such rods handed to them to beat people into line, so that a tab is kept on every of their dealings for scrutiny anytime

It's an invasion of privacy in my opinion, but the world is controlled by man made laws, and this is how they maintain that control. If everyone was free range and able to do whatever they please, they would lose control. This is why BTC is attacked, obviously, and why ICO sales have been using KYC methods that are a total invasion of privacy

Its absolutely right its never been guarantee that if some one asking for KYC then this project is going to be succeeded its just for some paper works I also joined few projects and passed this but still these most failed and now in next few months this is going to be more tough as many governments going to be very strict about this which can hit these ICO's very baldy as many users don't want to share their own personal information on internet for safety

Here a reality check: KYC/AML is not your friend, it will not help you from getting scammed, it will not help you to have more trust in the people you are working with in cryptroland. It's one and only purpose (in this context) is to control the on and off ramp in exchanges that allow you to convert crypto to fiat and back again. To be able to track your financial activities and coerce you into revealing private information about profit and loss in exchanges around the world.

However, there is very little actual policy that has been written into law, anywhere, right now.  Most of the news and PR spin coming from Governments around the world is pure FUD, then backpedaling.  As a result of these quasi-empty, well timed threats coming out of news agencies that are literally being paid to churn out paid propaganda, many exchanges are voluntarily enacting KYC/AML policies to the effect of locking up peoples money, losing clients, and going out of business.  

Exchanges are not banks.  Right now, in the US, exchanges that do fiat to crypto and allow bank wires in and out of accounts are not currently required to send their customers a 1099K form, which is the form that reports to the IRS on profit, loss and income. Why is that?  Because the IRS has still not set a clear policy on crypto.  The last policy the IRS set was in 2014 in it's decision to classify Bitcoin as an asset instead of a currency, which pretty much the definition of a poison pill. And recently a Federal Court determined that it was the courts opinion that Bitcoin was not an asset, but a commodity.

KYC/AML has nothing to do with terrorism, or organized crime anymore, those guys from the Cartels, The Triads, The various Mob Organizations, Putins Oligarchs, they simply go right to the top and pay off or blackmail the government officials and regulators. They really don't even have to try and blackmail anybody anymore, cause most of these people in control of these things are just happy to take the money.  

"The regulators aren't concerned about money laundering, except that they get their cut." - Paul H.

Anyone who is in crypto and is fully supporting KYC/AML should have their head examined. KYC/AML is about control.  Control of most of us here on these forums, the little people, the tax cattle.


Bitcoin is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain.

This reality is brought to you the people in the inside of the Global Fiat Cabal who happen to be very good stock traders who are making really good money in the various crypto to fiat exchanges around the world. Take some time to get to know know them, they are here among us:

A conversation overheard on a US based crypto trading floor a few weeks back by several retired successful stock brokers who now play the market of BTC to USD:


A little word to the wise: Coinbase has been thoroughly compromised. Move your accounts to Gemini, bitFlyer, anyone but Coinbase. We will soon see the garroted, rotting corpses hanging from the lampposts in cities around the US of the people betrayed by Coinbase when they caved in court, and most suspect that the price of the deal was an always open backdoor for the IRS to access information on US taxpayers with little or no resistance, going forward.

Countries like United States and Singapore have their own set of rules regarding purchasing crypto assets and other financial services specially banking. in order to acquire digital currencies and services from bank and other financial institute one has to go through certain verification process of identity check where you have to present identity proof documents. this process is called KYC or know your customer. AML or anti money laundering is similar process conducts to prevent the criminal activities.

Isn't it a time to add Circle.com to the lists?
As far as I saw they request customer information and refer to KYC during registration.I wonder, whether this makes them compliant.

whether it is a requirement to submit a KYC to a list on the exchange, and now ICO also has to submit to KYC and that I am worried about ICO or its project scam, please Explain mate, and i think not all Exchange and ICO has official Regulation.

One thing to consider is that KYC/AML apply to traditional fiat, so say an exchange like Bitmex, from what I understand, has very low hurdles for customer acquisition.  I think all they need is an email.  But that's because they don't actually accept fiat - everything they do is in crypto

On Poloniex and Bittrex there isn't any FIAT but yet they still fuck you with KYC and artificial withdrawal limits!
Almost all the ICO-s are using only Crypto but still want your KYC data. Why is that?

Exactly... And it's far worse, because there is no accountability - when compared to a Chase or BofA, etc. big institution.. At least a breach with those monkeys mean you have some control..  The random exchanges are asking for all kinds of photos of passports, or drivers  licenses, etc.. So now personal info AND digital images (JPG's) are out there.. Sucks.

The worst thing is what you dont know to whom you send you documents. If you will send your passport to every ICO, what is not licensed and regulated  you can be scamed (((

How come these policies can be adapted to ICOs and others projects with blockchain technologies?

Thanks you for your post. I am newbie, it help me so much to understand about KYC that need for ICO project.

Poloniex and Bittrex are under US strict policies reason why they are imposing strict KYC. Who knows the US government already have our complete personal identifications for possible investigations. I wonder why both companies didn't transfer to different country like Malta where Binance is heading.

Maged once again I have looked up what you have put together here and read through it. Just wanted to say thank you for this highly informative text, which nowadays will play a rising role and of course also in the way clients will evaluate exchanges and their offerings and how they deal with their personal data

Thank for you explaination.

Important aspects. But i think MTGOX should be removed from this nice article. When i see it's name i become different, furry.

Thanks

thank you very much for this picked valuable info.  ;) If I had a merit I would share  :'(

Great job! I've learned a thing or two from your post. Thanks.

Great contribution. I like the new perspective your post took. Thanks

Really helpful, thanks!

The thread opens the eyes. From the very beginning, the authorities were interested in having a clear idea of the monetary markets / holders and were wondering about the best way to adjust fiscal rules, etc. Thus, it was only a matter of time when more stringent rules were set for exchange, it does not matter if they change fiat vs. Cryto.

AML/KYC is a barrier. I don't have a utility bill in my name.  It is normal here that utility bills stay in the landlord's name.

Important aspects. But i think MTGOX should be removed from this nice article. When i see it's name i become different, furry.

I see more and more ICO asking for KYC and AML, also more and more exchange are asking for it. I hope they wont use our information for bad uses.

strongly agree with AML and KYC because it can be a strong security to enter the exchange.

the example of it when there are certain parties in other countries will corruption and the money in the run to Bitcoin, automatically enter the exchange exchanges and when the money deposit and buy Bitcoin then we will see where the transaction and how much deposit. and that's his function from KYC and AML.

Services design their own AML/KYC policies and risk management processes with the over-arching guidelines and statutory requirements in mind.  Conventional financial institutions tend to have extremely conservative risk assessment frameworks because they're at risk of fines in the hundreds of millions if they're found to be non-compliant.

That's also what I'm facing right now. I want to participate in an ICO but the name on the bill is entitled to my father which is not allowed. They should consider two ids instead of one id and one bill.

Both of them are related to jurisdiction, But there are international laws and rules that countries have to follow to be good. Usually fatf try to establish such rules.

can anybody explain exactly how do you detact AML in the crypto world ?
i mean in order to launder money you need to hack the blockchain am i wrong ?

In some cases this can solve with bank statement which any one can obtain with own name bank account and some companies accepted birth certificate if you living in your birth home

Does anyone know how accurate are the data from the kycmap.com ?

Last blog/news post is from 2015... Since that time many things happend in case of cryptocurrency policies but in the kyc/aml as well.

Could someone could explain me what is KYB??

I heard about KYC but nothing about KYB

Regards!!

KYB = Know your business - Know Your Business is the due diligence review of your business and industry which when reviewed against Money Laundering techniques allows you to develop policies and assess suspicious activities or transactions.

or Kick Your Butt )))

Thanks a lot!!!! Is difficult to understand all of the different terms.  :)

I dont know guys. As for me i very worry about private information. day by day KYC become more strict :( :(

Well explained thanks! These are very useful information especially for those who just started in crypto world

I have some ideas about how to solve this... but I am quite stuck financially
check out my proof-of-human idea

https://github.com/desLT/dID

Thanks for this detailed explanation on KYC and AML. This is of great importance in the crypto community and very soon, it will be made compulsory among other top exchanges. Bittrex mandate KYC for all users so as to be able to withdraw .its also good that most exchanges are now strict on this.

I'm always weary of any regulations about bitcoin. Nonetheless, it is nice to have a few regulated companies to buy and sell btc/usd from. Of course, nothing is going to prevent a mt. gox like situation though.

It's precisely, also even you, me, or anybody can make an ICO and harvest for selling the information that we get by that, that's very bad for usual people

I wonder, Will our personal data be used for no good purposes?

AML/KYC does NOT protect anyone from being scammed. was the biggest fraud in the history of Bitcoin and it complied with AML/KYC laws.

All AML/KYC does is force small Bitcoin startups out of business because they can't afford to register with FinCEN.  It's just another monopoly trick and it does NOT protect ANYONE from getting ripped off.

I'm confident that any of that kyc of aml doesn't help to prevent any money laundering. What if they will use our documents for other purposes, huh?

Kyc is required but the company should be support as much as people's want too

I find the shortcoming of AML / KYC is that it takes a lot of time for verification to be completed

Its not take too much time probably they give reply in 72 hours I clear few in just few hours its all depend on company support

In my opinion there should be a set point of withdrawal or deposit and at the point KYC or AML must be implemented small or medium trading like 01 BTC to 10 BTC should be ignored and all ICO s must be followed the KYC and AML rules not for investors,May be i am wrong but this is impacting negatively

That kind of information about people might cost much more than even 100$ and if those people do tend to sell out those info, then it would be another source of income for them

good luck

Yes, KYC information has a disadvantage where our information is spreaded around the internet. But, I think it is a good idea as it generally protects the customer, in a case if someone does a fraud transaction. They can trace it back to the person and save the victims.

Truly unfortunate that everybody is going the KYC route, what a plague this has been on the industry and will continue to only hinder people not help them :-\.

Very well explained about the KYC and AML process. These days, not just the exchanges, before the investments in the whitelist process ICOs are asking for KYC process to make sure that the investor is a genuine investor. After checking the complete information of the person who applied for whitelist will be the eligible person to invest in the tokens. I would like to know, is it safe to process KYC with ICO companies even if we invest less amounts?

And how about the case when your personal info that you willingly gave to a "known" 3rd parties
for accessing ICO or any other service gets used to do the fraud transaction or any other
financial or legal transaction without your knowledge.

Who will be traced at the end?!
Don't tell you never thought of that possibility or never heard of identity theft?!   ???

Very well indeed. A thorough look of how to be able to know about KYC. It's becoming a headache nowadays for the ICOs. The anonymity is being compromised yet if some needs to filter frauds and scams as well. But the danger really is identity theft. That's really the primary concern when the info is being hacked or leaked. Well we do it in exchanges so just take the risk yourself.

That was very useful, a im writting this reply to get more activity :)

In general, I'm not against KYC, the most important thing is that the verification is adequate. Because sometimes it suits, it remains to send more of their tests for completeness of the picture.

Thanks, I have really learned a lot of new about KYC!
But I don't love KYC. I very much am afraid for the personal data that they haven't gone to darknet and my person wasn't lit somewhere in Brazil on a poster or somewhere else.

I think the KYC policy is very important, after that the ICO, Airdrop, Bounty campaign should apply KYC policy to all members.
I've seen many spammers, cheats ... They get tokens in such ways I think it's unfair to others. And it will destroy a nice project

Hi I fm India... I have no passport

I got Aadhar Card

Will aadhar card can be used as KYC for International Exchanges

What is Aadhar Card? sorry i'm not from India so i don't know about that card. Is it one of Debit/Credit Card in your country?

You should ask Passport from your gov. It's a international well known document.

Was the biggest fraud in the history of bitcoin. Medium trading like 01 btc to 10 btc should be ignored. If those people do tend to sell out those info. I think it is a good idea as it generally protects the customer. What a plague this has been on the industry. After checking the complete information of the person to invest in the token. The danger really is identity theft.

I agree at least up to 5 btc should be ignored. 

I'm glad I saw this, been wondering what KYC means, the full meaning that is, I know the process, as I see it everywhere this days, but I keep forgetting to checkout the full meaning. Thanks for this.

Hi,
About proof of address.
I dont have bankstatement, so can i used what instead of it?

Thank for sharing

You can use anything proof at least on that proof have your name or your address home. An example you using bill electricity, phone, water anything atleast have some information about you.

I think the goal and the mission of implementing KYC to some bounty campaign has a positive reason and me myself has to go through this KYC Process in order to participate in their bounties but I am okay with it because for me it is a good thing that they should know who is their customer or investor and to prevent laundering or scamming their campaign. So I am okay with it and I support it.

Is there any way that AML/KYC processes can be undertaken by an ICO company manually?

Any resources and help will go a long way  :D

Isn't it a time to add Circle.com to the lists?
As far as I saw they request customer information and refer to KYC during registration

I think the concept to cryptos totally anonymous (as long it's only cryptos).
most of the countries in the world will not request any tax as long it's cryptos and not fiat money.

You can used anything that the ICO allowed. Some iCO that need kyc have their own choices so you can look to their website.just Be careful everytime you send your identity.

What about broker/exchange KYC procedures, i heard many users do not use fiat exchange on bitfinex because of KYC.
What do you think they do with our data, except user verification?

http://bitcoinist.com/3-icos-huge-potential-2018/

GBX and Rock Token....im so pumped

I`m be rich with ETrader_Bot for Satoshi Nakamoto: https://www.bitcointalk.org/ETrader-Bot-Best-Software-For-Trading/ (http://signalcoinbot.me) . You can be rich to.

I found third party services who offer the KYC services, https://shuftipro.com/ The services they are providing:
Facial Recognition
Document Verification
Name Verification
Address Verification
Document Expiry Check

KYC stand for know your costumer and it is very important to every business or ICO to protect their company interes. Especially when companies are offering investment globally and most of the investors are just online investors,it is the company’s right to know who are their investors and where it came from.For them to have a record and for government compliance purposes.

It's nice to learn about that 

Good topic! I am always a bit concerned about it, sharing name, ID number, etc with ICOs or other groups. Can this process be considered trustworthy, I am a bit afraid about data policy.

Thank you for such detailed information!

Blockchain KYC for DEXes will be the next step to increase adoption of decentralized technology in the traditional fintech world.

In the U.K. following the financial crisis and scandals around the mis-selling of financial services and products all financial institutions are going to extraordinary lengths to cover their arses by asking  irrelevant questions, just in case they get taken to court  by their disgruntled  ex customers. It also helps the with their AML and Proceeds  of crime act, responsibilities.

It is possible to get around the regulations but there are risks involved    

good explanation, very useful thank u

What kind of irrelevant questions, I wonder?
And how can they protect them in court?

Yeah me too like is there a law or at least a regulation that can protect our identity from being use to fraudulent acts and identity theft? We never know when sh*t can happen. On the other hand, can we us customers can demand a Know the Company? Of course we really want to know them like can they be also transparent? Showing some proof of their identity and other personal stuff. Of course LinkedIn accounts can be falsified.

Thank you so much for the information. I'm not that familiar in KYC but now I know it. thanks again.

This is good article. I have been researching about KYC and AML for a while and this write us is an eye opener. Thanks for sharing :o

KYC is a regulatory requirement for crime detection purposes.

I think, KYC is needed for each account. It shows the transparency of your property. :)

What about issues like Terrorism funding

I saw most of the bounties using KYC these days. are they really necessary? bounty hunters are not investors.how can they laundering money by doing bounties.

Sometimes I feel the KYC process is overkill, and it looks like it's fairly easy to fake photographs or document. More of a formality than anything else.

o expand a bit on what all this means at local level.

Services design their own AML/KYC policies and risk management processes with the over-arching guidelines and statutory requirements in mind.  Conventional financial institutions tend to have extremely conservative risk assessment frameworks because they're at risk of fines in the hundreds of millions if they're found to be non-compliant.

The risk assessment/management procedures individual institutions use are developed by them.  They get to decide which customers and what transactions are "high risk" and can and do choose to cease providing services to high risk accounts rather than apply enhanced AML/KYC compliance procedures to those accounts.  They are under no legal obligation whatsoever to allow you to operate a high risk account and don't have to justify a refusal to do so (under some circumstances, they may even be prohibited from giving you a specific reason).

Compliance is a huge administrative burden for financial institutions and it's both cheaper and easier for them to dump accounts/customers who add to that burden.  They not only don't care if you take your business elsewhere, they actively want you to do so - they want your accounts to be someone else's headache.

When your financial institution refuses to process a transaction or closes your account, they are not telling you what to do with your money.  They don't actually give a fuck what you do with your money.  What they're doing is refusing to act as the middleman in transactions which expose them to potential liability.  Any fees they might have earned from that transaction pale into insignificance compared to the fines which allowing a single transaction which breaches AML/KYC requirements can attract (it's 11 million per breach here in Australia for a corporation and a single transaction can involve multiple breaches).  It's not about your right to send funds to potentially flaky Bitcoin services or Nigerian "princes" - it's about their right (and, to a large extent, obligation) to not involve themselves in high risk transactions.

People in general greatly over-estimate their importance as customers to financial institutions.  You may believe that you're giving them "a lot of business", but in the overall context of their operations you're not bringing them enough profit to justify the risks involved in servicing your account.  They can always find low risk customers to replace you.

Hi! Is someone maybe aware of a trustworthy company that does KYC? I am looking for one with good reputation with reasonable pricing. Data storage is also an important issue. Thanks in advance!

KYC I find it very necessary for the Blockchain project ... It guarantees the rights of investors..Deep the phishing situation

It's precisely, also even you, me, or anybody can make an ICO and harvest for selling the information that we get by that, that's very bad for usual people

I do not know what they say professors, experts and other assholes about the AML/KYC.
But in darknet now a lot of personal information is sold for 5-10 dollars per package, and wholesale is much cheaper, thanks to ICO. Now scammers are actively using it to get free profits.
Millions of packages of up-to-date personal information. Now on these bots you can draw up any activity.

It might have some negative aspects as mentioned above. But in general, supposing good faith, KYC is a good thing in my view. It makes the whole ICO process more trustworthy and could lead to cut out suspicious scammers in a certain extent.

I believe most US based entities would have to check OFAC sanctions list compliance to make sure customer is not involved in illicit activities. Circle must already be compliant imho.

what is KYC. Who  required KYC, how it can be done.
Very well explained in this post. Thanks for sharing this information

In some sites, KYC is abusive. I mean websites without USD can avoid this method because we have already proove our ID when we have bougth Bitcoin before.

KYC/AML does protect from fraud but mostly protects the companies who follow them from liability though some actually do use it to protect their clients. SOME...

a very useful article for beginners

The kyc means know your costumers how kyc is very good if they can really work on the process of getting people verify in time. Also, many people now complaint great about lost of their reward in this process of kyc not get verify. Am little advice to them is that they should just work on the kyc process and things will get better on it.

thanks  ;D

While already very overcomplicated, these systems don't seem to me like a very secure way to identify investors. There are still a dozen ways that some devious people can find loopholes in the system, and all the while people who are truly legit suffer constantly and have their credentials under scrutiny. Some countries and banks are totally out of luck, even though these people have no other options.
This situation really reminds me of the DRM (Digital Rights Management) implementation in videogames. For those who don't know, DRM is implemented to combat piracy, but instead it just makes it a little harder and takes a little more time for pirates to steal games. At the same time DRM makes many computers of legit users underperform or don't run the games altogether, which makes prospective buyers avoid games with DRM implemented. Don't you see the irony?

Sometimes people do misunderstand what kyc mean and they use to run from project when they see kyc. However, the meaning know your customers that is the team we know where the participate are from, I mean the participate in both the ICO and Bounty.   All, this information help a lot .

OptiToken almost done with ico, who got moon tickets

The guide is very an easyt-to-understand one. I saw KYC and AML terms in white papers and then I made google search about them. But the results were not simple. Your explanation is nicely done thank you.

We knew that KYC/AML will be one of the main reasons why the regulators and government will ban or accept crypto currencies

I have the same question, because, if i help to spread information about project and i am not investor, why should i go through KYC? And the answer, i think, that managers have chance not to pay you, because sometimes you just can't do KYC.

I actually like the idea of KYC/AML to have the chance to filter suspicious contributors for instance. However, I do not see the system fully protected either, and the possibility of fraud with personal data is also a big concern.

nice piece of write up, thanks

Perhaps the owners of the projects are just hedging their bets. Recently, many countries have adopted and developed laws aimed at the legalization and regulation of cryptocurrency.

although,  i am not against KYC/AML because to some extent it prevent money laundering and terrorism. however, the risk of the vital information supplied being stolen is another thing. more so, it is like a clog for the people from 3rd world country to access crypto market. i am of the view that limited amount be set so as to afford the small scale to access the market. 

As for me, almost all ico that require KYC for bounty participants are scam. In my experience these ico either try to reduce payments or do not pay at all.

When the limitless possibilities afforded by blockchain technology was discovered by people, many entrepreneurs and developers set about to use this revolutionary technology to create platforms that wold solve real world problems. However, in a system that relies on personal data, the problems of data security arise. And this introduces the need for compliances laid down by relevant authorities.

KYC/AML Compliances to Ensure ‘A Clean Platform’

The most basic compliance that is required by any blockchain-powered enterprise that distributes tokens is the KYC/AML. KYC, also better known as “Know Your Customer” has gained importance in recent times in the financial sector owing to the large number of fraud accounts that people create in a bid to launder money or for other illegal purposes. Today, even blockchain enterprises need to perform stringent KYC procedures that establishes, beyond any doubt, the identity and authenticity of an individual. AML compliances are also necessary to establish that all measures have been taken to discourage money laundering and the enterprise follows all guidelines laid down by governmental authorities to stop cryptocurrencies from being used by their customers to launder money or for illegal activities, like financing of terrorist activities (CFT — countering the financing of terrorism).

You can read more about KYC/AML Compliances here... https://medium.com/@coinnup/the-importance-of-compliance-in-ensuring-data-security-in-blockchain-powered-enterprises-4f4d10488b72

if you think about it most affiliate programs out there require AML/KYC info in order to sign up and get paid. Getting paid on a referral basis is equally important to monitor. There should be levels of flexibility in the verification process to make sure not to exclude those that may have certain circumstances that don't allow them to provide the information requested.

now KYC indeed often appears in bounty rules, KYC is a very good rule, there are KYC accounts that follow bounty no double or double, KYC is in need once.

i have always want to ask this question, how secured are the documents we do upload for KYC on exchanges, is the any law governing the mishandling of those documents if they leak it out.
Thanks

i aggre with KYC system but sometimes there some inancial institutions and other regulated companie use only passport for kyc but thereare many inancial institutions and other regulated use residence indentification,driver license, passport
use only passport for kyc is not quite right because there are still many people who do not have a passport

Good job with this guide, it’s vital for all traders, investors and all who are related to money. What I think, KYC/AML is essential for modern traditional banking and trading systems as they protect from illegal actions like those on darknet. However, these principles contradict ideas of decentralization and blockchain, so modern innovative systems should protect customers and prove the legality in other ways. Frankly speaking, idk which ways. For instance, technological solutions like ideally encrypted data or something like this. We even can call it new-era KYC/AML but without direct providing of sensitive information to authorities. What do you think, guys?

Kyc is means this know your customers by the use of kyc means the project developer or the team have the perfect idea of who they are dealing with and the country those people comes from. However, the main problem with kyc is that they really waste time to approve.

I understand the need for KYC and AML, but the idea of uploading a photo of my Identification card or Passport photo worries me a bit. Ive also had some difficulty with KYC verification because of the documents I provide.

Thanks for this info cos it is well explained and I believe it goes a long way in assisting people and new crypto believer into glancing a glimpse into what it is all about. Well I always say it that with the wah the world of cryptocirrency is going, regulations upon regulations are inevitable and I still believe most would be for the good of the industry. Thanks once more

Good explanation you have made there. However I'm still very skeptical of airdrops that require kyc. It's too risky giving out full confidential info to an unknown person behind a computer...

Who knows, I could turn up wanted in Saudi for false identity!

Regarding how much KYC is required there is another angle to it based on the amount. In most western countries amount more than $10,000 requires address verification as well.

Not likely as the cost of KYC is quite significant.

Can you be more specific?!

Also nobody here gave any detailed info about how this KYC procedures are done
and how the fake info gets spotted?

I must say that, this article has been very helpful to me in all ramifications. I have been battling with what AML means but in this article, I find it very helpful and I understand the full concept of what it means. 

I understand it is a requirement but I am scared every time I have to do KYC. I just had like a 3 USD from earn.com for a site that wanted my KYC, and I asked around my friends have not done it, so I said screw it.

KYC is identifying and verifying who you are based on the ID documents like passport, drivers license etc. This may also include source of finds etc.
AML is to check whether you are on some sanction list, FATF or a politically exposed person etc.

KYC is to verify your identity. KYC makes transactions transparent, transparent and no suspicious transaction

Thanks, but I already know what is it.
I don't know how it's done?! I mean the process of verifying the documents(personal data) after a user sends them.

 

KYC is not good for decentralization, it compromises the idea behind cryptocurrencies IMO. Crypto must be anonymous. When you go through the KYC process it's like a cashier at the grocery store is fumbling in your wallet and makes a copy of your id.

On the other hand, I understand it's a matter of security, to avoid money laundering etc. And there is a chance we are not ready for full decentralization and anonymity yet.

I am strongly against KYC for numerous reasons. But like I said, I understand why companies implement it. If you are an ICO contributor and you know you have to undergo KYC from day one, it's fine. It's not fine when they only implement KYC after you have invested in the project. This is what Tezos Foundation has done to its contributors.  If you are also Tezos investor who doesn't like this change of terms, or if you generally  stand against KYC, join the chat https://t.me/XTZstopKYC Together we can upgrade the protocol and cancel the KYC check. It will also be helpful if you share the link. 

Of course, AML/KYC is an important part in the regulation of financial flows, but not everyone is ready to provide their personal data to the company, because it is a matter of trust. Therefore, Godex.io doesn't put these issues in front of users. We do not require any personal data. Stay anonymous while you need it

How do you know if the company actually conducts KYC involving lawyers or special agencies or just collects documents to then hide with them?

Hello friend ,

I was looking for these topics since 2 weeks and i was unable to get exact definition for them.

But now I had the exact one thanks to you.

Thanks a lot.

Please upload more difficult words like this as soon as possible.

Good Luck.

Know your customer (KYC) alludes to due persistence exercises that money related establishments and other controlled organizations must perform to find out applicable data from their customers to do business with them. The term is likewise used to allude to the bank control which administers these exercises.

About the website you stated I wouldn't know but I know there are some that charge $9 or so for kyc verification.please kindly beware some just collect your info and maybe spam with pushing links.
Try and be conscious about where you send your kyc to

I highly advise against sending personal info to shady icos. Even less so your coins... We need some kind of reverse KYC. It is not the customers who should be validating themselves but rather the ico itself. Otherwise who are we protecting?

How should I deal with KYC procedure if it was introduced only at the end of ICO but was not relevant in the beginning? Is it a shady ICO?

Do you mean after you have made your payment?

Yes this is almost scam because not all the rules were disclosed at the beginning. Is like breach of contract.
I think you and anyone else that are not willing to do the kyc should ask and get the full refund
because if you would know that there is a kyc requirement before the ico you probably would not invest any amount in it.

So try to ask for refund if they are not scam they should return the funds.

In other words - government collect your investment data

HURRY UP DECENTRALIzED KYC/AML!!! then I will agree with this thread

I think KYC is not a safe way but other exchangers and for verification need it. They collect the data from others and I think it is not good, especially you passport details

As in this article, it is inevitable that measures to deal with money laundering and KYC will be strengthened as future encryption currencies are developed
Cryptographic currency must be accepted by governments and businesses in each country

https://news.bitcoin.com/bithumb-coinone-fiat-withdrawals-crypto-traders/

I think that the market further develops when proper regulation is made.

Some KYC very annoying they require and demand passport and utility bill under users name. Well like me Im just live with my parents ,so all bills are listed to their name, In addition some KYC they don't accept Local ID's but insists you to ulpoad passport only.And also KYC is not safe for me.It can be used for some illegal stuff.But in future theres a lot of decentralized exchange,I would prefer ro trade on DEX exchange.

I invested in several ICO's this year. With one or two the KYC process was real fast, happened within a few days. With another couple of ICO's it has taken forever. One in particular is now nearly 2 months. How long should it take?

Most ICO's have a third party KYC solutions provider so it's normal for processing times to vary. There are top KYC providers that has AI integrated in their platform so the process is really quick.

The term KYC refers to Know Your Customer. This terminology is more prominently used in the finance industry or the finance business. It is an activity to gather information from the clients and to authenticate on various parameters to make sure that the client holds a clean record.

The term AML (Anti-money-laundering refers) to a set of procedures, laws, and regulations designed to stop the practice of generating income through illegal actions.

Most of the cryptocurrency exchanges heavily rely on this two terms and have a strict KYC and AML policy of their own to deal with frauds and protect their funds. Even if you are planning to start your exchange, then you too have to focus on these aspects, but what if you do not have proper knowledge and expertise to tackle such issues. Under such circumstances, you can opt for a white label solution provider like Ibinex who can tackle this problem with ease and will create a full proof crypto exchange for you in a months time.

Many, many KYC required KYC after Bounty campaign for bounty hunter
Althought Before They said don't need KYC for bounty hunter
It's made some people in Canada or USA can't get their coin for some month workhard

For cryptocurrency to be widely accepted in the world today, the place of AML/KYC most not be overemphasis. I can still see some ICO not enforcing KYC for the sales of their ICO. They are not doing the Industry well in term of giving the Industry credibility for mass adoption of crypto. KYC must be a must for the sales of an ICO and trading in the exchanges.

Thanks for sharing sir, i can see alot of websites requesting for AML/KYC . Is it a way to authenticate their site's purpose or a way to protect the interest of their clients?

To the extent, I saw they ask for client data and allude to KYC amid registration.I ponder, regardless of whether this makes them consistent Free.

Is there a way that KYC/AML can evolve in into a more sophisticated but a security check for monitoring progress and process?

KYC, in my opinion, is a necessary thing. In the television series "Billions" traders each other reward in cryptocurrency. This is an obvious way to transfer money for not very good purposes. This is the obvious thing.

What do you think about IDEX situation, when they say that gonna collect KYC. And I don't wanna give them anything! I want to stay anonymous. What for they need my data? They will simply lose competition to DEX'es like Ethermium (https://ethermium.com), BitShaes, ForkDelta etc.

KYC/AML seems to be  a different case in different countries. But some exchanges like Bitstamp go too far in locking up your funds until you pass AML...

I had exactly that experience with Bitstamp. I wonder if they do it on purpose, to put your crypto to work for their benefit while you cannot get it out of their system.

Many exchangers get people involved in, allowing them to trade without verification for a while. Once your balance reaches some value, you become a victim of selective KYC. Very simple scheme, which is impossible to find fault legally, and they get a large amount of money from you basically for free. This is one huge conveyor.
This is why we 1. do not store users finds 2. do not require KYC

Because KYC procedure links wallets with the actual user’s identity it can lead to information leaks. A recent study concluded (http://stevengoldfeder.com/papers/ZKCSP.pdf) that 53 out of 130 platforms the research was conducted on leaked critical personal information to a total of at least 40 separate third parties. The absence of enforcing KYC does not affect the user's asset security on the platform whatsoever, and furthermore protects the user as information leaks can lead to serious issues such as identity theft and other fraudulent acts.  

Mt Gox is the most notoriously 2 x hacked crypto exchange which enforced, rather still enforces KYC/AML, and while it helped them trace some of the lost funds it still managed to lose them in the first place and was the most prevalent exchange of its time.  

I personally prefer no KYC.

Prime XBT (https://primeXBT.com (https://primeXBT.com)) can be added to the list of trading platforms that does not require its users to submit to the KYC procedure.  

I'm down with no KYC - Mt Gox and Quadriga both required KYC and did not do much good for them!

Are there any exchanges that do not have document requirements, and accept wire transfers to fund the account to buy crypto?

Or is that still, in 2019, done by in p2p exchange and pay a premium?

Not necessarily looking for anonymity, but KYC requirements are bullshit. It's easier to open a bank, brokerage, etc accounts...

Slowly slowly this is the way Government state take control of cryptocurrency. They call this KYC know your customer and so on. So why not just open banks. Cryptocurrency banks that way banks can do Kyc and keep safe your details. I not willing to hand over my detail to any Tom dic@ and Harry.

Also what the point of cryptocurrency if you can’t stay Anonymous. This is killing cryptocurrency and that what state want.

Let’s let cryptocurrency be  decentralised again.

I hope its only April fool not true

https://bitcointalk.org/index.php?topic=5124947.0

Now there is nothing surprising in the fact that KYC is required everywhere. I vote that this KYC, which is now introduced on the forum, would be forever! I like that. I love fun!

Great joke created in advance. I was already excited, started looking for my lastest photos: D

Take a look at Coinfirm AMLT report about risk KYC/AML. For example, Binance is in "high" risk.
https://cointelegraph.com/news/study-14-of-major-crypto-exchanges-are-licensed-by-regulators

It is always a risk to leave your document data and photos with your passport somewhere! Even when you leave confidential information about yourself in the Bank - it is also a risk. In banks there are dishonest employees who can use it.

same would like to see that too

How is this even measured? Is there a online resource with guidelines on AML/KYC?

The reason why many run away from KYC might not be far from personal security. You cannot just release your identity to an unknown entity. Most projects that are demanding for KYC/AML does not even put appropriate infrastructures in place to carry such process in an automated way. Most time, you have to wait for days or more than a week to get feedback.

Despite the importance of KYC/AML in preventing money laundering and other related crimes, one cannot denied the risk involved. Third parties mostly untrusted can make use of customer details to commit a financial crime which is generally known as identity theft. At the end, the only traceable element is the real owner. We should be cautious in releasing our identity and ensure it really worth it

Is there any exchange these days which only require a copy of ID, allowing watermark, and no selfie? Thanks.

Right sir, I think KYC and AML again drag us into classical financial system. The vision of Bitcoin creation is to provide freedom from present financial ecosystem. But instead we need a Blockchain based solution which is alternative present KYC system.

How would a blockchain solution be any different?
If you MUST provide your private information, blockchain or otherwise, it is NOT treated as a voluntary act. How could a decentralized system of identity collection work differently?

Does anyone know if I need to pass AML/KYC test in mpcx's platform?

Not for AML, since it should not be easy for criminals to find out how to work around.

AML rules should not be published - it's a business secret - to be efficient.

Is it true that OOOBTC's first IEO is MPCX?

Some exchanges don't ask for KYC for depositing bitcoin or other cryptocurrencies.but they require KYC when they feel u are about withdrawing your funds from the exchange.I had a very tough experience with hitbtc.Not going back there anytime soon

And also a lot of exchange does not require KYC but without verifying KYC you can withdraw/deposit a small amount of money for example you may see bittrex or binance. They give higher limit for verifying KYC.

Where is this rule? 48 hours or 24 hours? I ask because I thought it was 24 hours.
With 48 hours it implies it accumulates, 2 10k deals in two days would be reported.

Choose a No KYC Crypto Exchange if you are confused about KYC.

How do you feel about the fact that some exchanges sell personal customer`s data into the Dark Web due to the users must pass a KYC. KYC is the personal data that an exchange actually receives and there are no guarantees of security, only trust

If any exchange use our data or sell our data we cant do anything if we cant proof either they sold our document or not. If we can proof and they break any terms of service then we may try to make dispute. But better to use trusted exchanges those who will never use or sell their customers data.

There is no fully regulated and trusted exchange yet. I wonder if SIX Group's SDX , SCX or bakkt will be that?

yeah hitbtc is fishy, all that minimums to withdraw and so on.. also moved from there

https://www.pwc.com/gx/en/financial-services/publications/assets/pwc-anti-money-laundering-2016.pdf

This is an extensive document by PwC that lists every country individually, KYC laws and limits.

Exchanging over certain values can trigger mandatory AML reporting. It is worthwhile understanding and knowing the KYC and AML laws.

It prevents unnecessary issue over locked account. It appears to be something that is happening a lot now.

It is a little bit dated being from 2016 but it is a good start.

Kyc is needed for every exchanger, it's for secure financial. Is there any exchanger no need kyc now?

I guess some of the information provided here are already outdated and some dead links need to be updated. I think KYC policies change over time. In my recent experience with Bitfinex and if you scan through their Help center, you will find that they do not require KYC during sign-up, during deposit (up to a certain amount I guess) and trade of most cryptocurrencies. KYC is required if you want to deposit/withdraw fiat, stable tokens/coins and some other selected tokens/coins.

Maybe it is funni for  today, but on exchange 50x no any KYC.

If you're referring to LocalBitcoins.com then you can update OP as the new verification system is much stricter now.


And that's the lowest tier available now, T0.

For anything above that you need ID Verification, Physical Address Verification & more.


Reference Links:

https://localbitcoins.com/blog/id-verification-update/
https://localbitcoins.com/blog/tier-verification-deadline-extended/

Note: I understand the post is old but it's pinned, so it must be important and still relevant.

Oh no one protects KYC. This kind of monopoly. How can I trust my identity to an unknown person?

Oh - if you go totally dark, nobody can and will protect you. Only big criminal fishes want such and will Profit most of.

If entire money paths would be tracable. many crime and corruption was not possible.

Bitcoin can do that, small clean fishes should vote for IMHO

Nowadays, there are people think that there should be a better way to verify user not KYC. KYC some how made it complicated for user.
How do you guys think?

But who will protect me if my data will be stollen and come to the hackers. There are a lot of cases when hackers steal the data.

Sure - in the old world where u don't reall own ur data  that is an issue

New world is ID / kyc via blockchain / token application like twohop / Pixel wallet tries to do together with Refinitiv KYC solution

Here u own ur data and only send out things / sign for check P2P and ur Provider does not need to store it (like showing ur passport visually)

There are some pretty damn cool digital identity solutions out there right now using blockchain to let you verify your identity w/PI documents (passport, birth certificate, etc) without having to actually let another company store your documents on their servers. They're all stored encrypted so you don't have to worry about anyone being able to access them unless you grant them access. I was at CIS LA a month ago and saw a couple companies pitch their ideas to the city of Los Angeles and the city's representatives were pretty receptive to it. I look forward to where these types of solutions go in the next decade.

I think KYC and AML is totally against the spirit of cryptocurrency and blockchain. I mean, all our community as about being anonymous and decentralized. And KYC & AML are killing it, imho. I cherish the exchanges, that don’t require them and actually stand for anonymity. Like Basefex, I recently found about them and their pledge looks kinda promising. Gonna look after them from now on.

Thank you for the article. KYC can be tough. Of course sometimes it's necessary for security etc etc... but then what is the sense of cryptocurrency? Crypto means underground... That makes me think if there still are services that don't use KYC. I know the exchange Cripto intercambio doesn't use it for example, but I'd want to learn about bigger and more known services

I think people have lost confidence in KYC because the information was sold by different people and advertising and the like targeted them. That's the way the world could be.

But on the other hand, a company in the crypto industry right now without having a proper KYC will often not be able to accept any sort of payment, as banks/card providers would refuse to provide services to them.

Especially in US, but even right now AML5 is making huge difference in Europe too by forcing every member country to implement it (and still some of them aren't ready for January 2020 - i've read somewhere an article about many UK companies which aren't ready and even though they are leaving EU, it's still in force for them i think). Cryptocurrencies are going to be more regulated than ever and those changes aren't made for you guys, because you already know how to protect yourself, you are vets. It's for the newcomers, for the people who will join cryptocommunity very soon, with projects like Libra which are going to adapt it more than ever. The funny thing is that if we look at the "stealing crypto" problem from the global perspective, we'll see that it's really difficult to introduce other solution on this scale different from forcing everyone to register themselves and look at their hands 24/7. Furthermore, the market is heavily fragmented and there are various different standards across the world, even around the European Union. There is a huge demand for AML services and this trend will continue to grow vastly. Other thing is how cryptocurrencies has changed the crime sector as a whole - money laundnering for the last couple years has never been easier and it's time to do something more. However, it becomes really serious topic and many associations wants to fight. There are special methods and companies who deal with such issue. For instance Coinfirm, which is a partner with Binance, is analyzing cryptocurrency transactions to see if they went through the mixers and rate their risk level for AML compliance reasons. They just released their new Standard AML Risk Reports, you can see a sample of hack-related transaction on their blog, it's worth to know how such reports looks like. Hope next year will bring a lot of changes, especially now when there is a huge demand for AML services and this trend will continue to grow vastly.

If someone do not want make KYC process, just registerind in the exchatnes without KYC and all!

There has never been a question about the providence of the KYC procedure. Many sites accept my data without any problems. Especially when using Airdrop.

These two are really an integral part of financial institution and all other financial base platforms. We all need to input our information for security purposes and on the part of the institution who accepts financial transactions. In the case of bitcoin and cryptocurrency who had been somehow a private platform may somehow cannot fully adopt these regulations since by nature it decentralized and noone is really controlling it. In the future these maybe use as part of the process but most likely not the whole idea of it.

Nobody. That's why you should only perform KYC if you trust the other party. This is still a risk though because even if the company never intended to use your data for malicious purposes, some bad hackers might breach their data anyway. Even a big company with the best tech talents like Facebook still prone to data breach. So forget KYC for ICO/IEO. You're stupid for sending sensitive, personal data to shady "developers" team on the internet.

I think that often those projects that host KYC are still correct in their business and thanks to this confirm the identity of everyone.

The regulation does not protect everyone in the space as it ought to, the organization that took it upon itself to collect date recently should be scrutinized very well. No one can be trusted even the Government with personal data, we have bridge with personal interest even by the president of United state but there is nothing we can do about it now. Decline in decentralized exchanges, exchanges closing unverified accounts and ICO requesting for KYC

I get a bit interested in security levels on exchanges, AML , KYC so on so on, read some articles about Coinfirm you mentioned and found interesting interview with co-founder I think. If you haven't seen yet I could recommend it, maybe you will find out sth new: https://www.youtube.com/watch?v=83JnxuUUJ5o

I understand the reasoning behind it however the question i want to ask is Why?

Most people, dare i say 90%+ are using crypto due to its anonymity so why ask for all these documents? Doesn't that defeat the purpose of crypto.

So everyone who is against KYC is simply obliged to start trading on exchanges where there is none of this. The most technologically advanced exchange without KYC is 50x exchange.

Just look at my signature ;)

The AML/KYC is the best way to make the world of cryptocurrencies look safe, but many don't deceive us.

However the explanation is perfect!

Wanted to ask regarding the same question for website like http://www.bonofe.com  any response will be ideal. Thanks

To UPDATE this thread.

After possible using every exchange made since 2013. I can say with certainty that Kraken is now one of the least intrusive  and one of the easiest places to Buy and Sell $BTC (and some alts). Cash in bank often with 24hrs.

Certainly avoid the likes of Bitstamp who are really terrible at wanting to know EVERYTHING.

So anyone here looking for a Safe, trusted and easy exchange, Kraken is your best bet.

AML System is not protected our infront KYC leak. Moreover, I see many exchange AML KYC system to check KYC from user, but many people use KYC fake and they still pass KYC.

Essential or Destructive?
Digital banks are capable of tracing fraudulent activities by customers via the use of the Know Your Customer (KYC) verification process and with the integration into crypto exchanges, there is a makeover in the exchange platforms (https://fintechzoom.com/crypto-exchange-no-kyc/). The activities and transactions of clients on crypto exchanges can likewise be monitored.

The crypto market needs this service? or it´s the beginning of Gov Regulation?

it's a good explanation but it still defeafs the full purpose of crypto and decentralization if exchanges now have the profike details of its traders which can be easily fed to yeh government. What did satoshi think when he founded biycoin in 2019

Thanks for sharing,

This looks good; "Your ID, source of funds, or any private information are not required, and FIAT services aren't provided. Hence, your ID copies will never be made available to the public - because we do not have them. The interaction with 50X.com is the same as with the blockchain - the existence of a private key is enough." And Kingstown.
A caveat: centralized, still. I wouldn't say then that my interaction, as a user, with the exchange would be the same as with the blockchain, the blockchain isn't custodial ad hoc.
RD

i think KYC/AML is okay .now almost every crypto  exchange or wallet is doing kyc. i think which country is allowing to trade crypto they dont need to do it .its must be necessary for those countries they dont permittion to crypto
what do you think

Like anything else, AML/KYC has it's advantages and disadvantages. The most known advantage is that it helps fight suspicious activities like laundering of stolen money and tracking down of criminals. the bad side is that customer's data and documents can easily be leaked and used for other dubious activities.

The idea of using KYC in only Countries that do not restrict crypto trading is not possible in the current situation because people use VPNs and proxies so in most cases the platforms just roll out general KYC verification for all their customers.

It seems that more and more sites are following this procedure on their sites. I think they do not like to do that themselves, but that they are in the minds of laws and regulations. It may scare a lot of customers, but eventually casinos will ask for documents anyway if you win a lot of money. So then you better start with this procedure of the KYC right away.

They are in principle linked to each other. at the KYC you request documentation, which in turn can consist of an AML.

You could see that KYC is the primary process and the AML a secondary or ancillary process.

Many users are scared when they read AML, but this seems to be something increasingly and more entrenched by a government.

Companies or casinos cannot do much about that. They are guidelines that must be adhered to.

I had a little bit knowledge about kyc but i didn't have any knowledge about AML. After reading your writting now i fully understand about KYC/AML. And how much need this both point in out online crypto journey. Thank you for explain clearly both most important subject.

Some platforms like Localbitcoins.com use KYC to keep your account frozen, just to steal your money.

https://bitcointalk.org/index.php?topic=5293760.new#new

Well, In simple words KYC refers to a process whereby companies commit to identifying and verify the identity (https://shuftipro.com/blog/why-you-need-to-verify-identity-online) of their clients. Banks use this process, for example, to try to avoid money laundering.

I use simpleswap.io mostly because they don't require mandatory login and KYC. So maybe this info will be helpful to you who do not want to waste time on this extra fuss!

To be 100% fair the clients or the customers of the company, bank or whatever legal entity
should have the ability I mean rights to do same  KYC/AML of any person working for the company
that is dealing with his/hers data.

? - You know the company and find out lots about in public

KYC and prove source of funds / beneficial ownership helps you to really own things - cause: who finally ensures you 'own' things ?

Hint: Law & Gov

Yeah right!

A company is fiticous legal entity in which in a lot of physical people that are working there are "hidden".
I know the company but I do not know the people who handle my data.
What does it mean if I know a company? Company data is public but my private data should be private
and not shared with anyone. Once the data is stolen knowing the company won't help me.
Once when they come to your home to extort your bitcoin because
you shared your info with a company what you gonna do about that?

KYC/AML is bullshit is totally hypocritical.
For years drugs and weapons are smuggled around the world and this for years before crypto
were invented. How so that for all this years authorities ware unable to stop it applying this KYC/AML policies?

They come with that bullshit idea of AML/KYC to fuck us (common citizens) over few hundred bucks
that we transact in crypto while billions are laundered using FIAT money
by invented fake "companies" using fake bank accounts!

Really?! $10k seems too low to warrant reporting.

I can usually talk about KYC here because KYC here means you will have an account on any site or exchange or website. There is a need for your security. You must verify your account in order to make a transaction.  You can work with security on different site exchanges

Hi guys,
would like to hear some advices:
I am a customer of one crypto exchange (since 2017 and verified), a week ago after transfering some coins to my wallet got AML5. Now I need to send " explainaition" about all coins/transfers.
I do not understand how to send it: I was in-active since 2019. Last months I started to transfer some coins from other my wallets (also was in-active since 2018-2019). So after I got this email, I checked all my transactions and the conclusion is next: all wallets were in-active since 2018-2019 (I just stored coins on these wallets). Transactions to these wallets are from other wallets (I even do not remember which exchanges/partners or something else). I mean noone and never asked me to "show" anything. I checked also my emails, found that I bought some coins also in 2017 (but also it is just may be 10% from some transactions).

What doyou think what is "enougth" to show?

Currently the maximum what I can show:

("locked wallet") < got money from < my 1st wallet
also < got money from < my 2nd wallet
Also I can show all transactions for these 1st and 2nd wallet (when I got money and it shows that money transfered in 2019), however from "where these money come" > I can not show, because I do not have anything (2-3 years ago).

In my opinion if wallets were "verified" and they stored money for 3 years, it could not be "money laundering" (also + these transactions=coins belong to you), however I do not understand new "laws".

I understand that they want to see: FIAT > buy > got Coins > transfer > "locked wallet". But in my case it is already "impossible".

Also in 2019/2018 I did a lot of chaotic transfers, like: on this wallet I will store only BTC, there ETH... then a few days later, let's change "wallets" and now here I will store that, and there something else: it means if I could open/find my transactions, so it could take 100-200 pages of explaination of each transaction, because I sent them from one to another wallet a lot of times (also because of security fear).

About in-active wallets: I still have some wallets with BCH "before the FORK!" it means I still did not open them and not yet got my BSV... this is how in-active were my wallets.
Currently I just can not send them "something" and see what happens, I want do it once and 100% sure.
So what do you think I should show and explain? Would it be enougth to show all my assets from other wallets (from 2019) or I have to show the "first" initial transfer from the "first" initial wallet, where I bought the coin or got it from someone?

I wonder if some governments do DDOS attacks on exchanges that doesn't have verification. I wonder, if they're so obsessed about anti-money laundering?

KYC is danegrous  and useless.
Please read and learn before you make big mistakes
https://bitcointalk.org/index.php?topic=5221497.0

Try to understand because it could save you big troubles.

EDITED:
Look by yourself
https://cointelegraph.com/news/mobile-crypto-mining-app-possibly-connected-to-personal-data-leak

Now you go and share your personal info with any useless bullshit app that you can install
on your mobile phone.

I don’t think it’s bad idea to perform the KYC on trusted sites and apps. It’s the way it is if you want added security. I’m not sure why people are afraid to do KYC on legit sites at all? The KYC is there because that’s part of real world regulation and it could best life saver if anything goes wrong let’s say someone hacked account, stole any money etc. You can complaint to the authorities with all your information and have your assets back. Otherwise its very hard to recognise the accounts with only usernames and email ID. Consider it extra layer of security for the future.

I don't feel comfortable providing my personal data to some online services. At the same time, DeFi doesn't offer a good solution for cases a user gets hacked. Looks like there's nothing in between...

Cryptocurrencies were originally created by people who valued their anonymity and privacy.  

Bitcoin is a quasi-anonymous cryptocurrency.  

However, when Satoshi Nakamoto first created the first cryptocurrency, its level of anonymity and privacy was quite acceptable for its time.  By going through KYC and AML procedures on centralized cryptocurrency exchanges, you deanonymize not only yourself, but also your counterparties.  

In my opinion, this reduces the overall value of the Bitcoin network.

Anyone know whether Bitfinex uses AML and if so, under which agency or jurisdiction?

Sure, if you look through their terms and policies, yes to perform KYC verification and have an AML policy in place.

Under their privacy policy (https://www.bitfinex.com/legal/privacy)
for AML, they use a company called AU10TIX Ltd (https://www.au10tix.com/privacy-notice) that they claim is located in Isreal but as per the website of the company, they say their postal address in Cyprus


At this point, I am not sure who's correct and who's wrong.

What should I do if an exchange rejects my KYC without explanation (I'm a real person)

If you explain little more then it will be easy for us to answer you accurately. by the way if you KYC application rejected then you can see the rejection note on kyc place or you will receive email with rejection note. Most probably reason may be light problem, wear sun glasses or camera problem.

Now you have to contact customer support for this problem and online chat admin will guide you for fast KYC approve tip . Send him KYC image to check for any problem. my friends kyc was rejected in Bybit and then he contacted customer support and they fixed it in 5 minutes.

QUESTION 1: What country should I put my location to that pretty much all non-KYC (and even KYC) exchanges will allow?

Folks on another forum said Gibraltar or Cayman, my VPN doesn't have those as options. :(
Would Spain or Singapore be good countries to use that most exchanges allow?

TMI:
[I need to get onto non-KYC exchanges & think using a VPN should be used cuz even non-KYC exchanges often insist you are not from certain countries.

I don't have dedicated isp, or however you phrase it, but have a regular vpn (a good encrypted one), and am hoping that will be good enough even if the exchange(s) detect vpn usage.]

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QUESTION 2:[/b] I'm looking for exchanges that are legit, have decent liquidity, and don't require KYC.

I've been told okx, bybit & primexbt are good. Any others?

TMI:
[I haven't ventured to dexes yet. Got kicked off binance, now kicked out of kucoin, so I'm tired of kyc b.s. cuz I wanna trade smaller coins & do margin. Is that so wrong? Argh!]

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If anyone answers, I'd appreciate a link to your source if it's from a well known, reputable site. Only if it's not too much trouble...if you don't have link, I still appreciate answers, as that will give me something to research further. [I've spent hours trying to figure this out but get inundated w/info overload--know what I mean?]

Thx in advance! Mwah!  :-*

I often use Singapore as my favorite VPN location to access cryptocurrency exchanges. I haven't encountered any issues.

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Go here : https://kycnot.me/?type=exchange
I think Bisq is suitable for you because it's a comprehensive service and also without KYC. Ann thread for Bisq : https://bitcointalk.org/index.php?topic=5230289.0
Or if you're still unsure about my recommendation, you can visit the link  (https://kycnot.me/?type=exchange)I provided above and choose another one.

KYC (Know Your Customer) is due diligence by financial institutions to understand clients. AML (Anti-Money Laundering) combats illegal income generation. Both involve local regulations. Bitcoin exchanges adopt KYC and AML policies for compliance.

the balance between regulatory compliance and user privacy is without a doubt exposing capital flight(money laundering) excessive and robust solutions should ensure security without compromising the essence of decentralized finance.

Anyone who wants to remain anonymous in cryptocurrency and trading or just exchange, I advise you to use the 50.com exchange, which I have been using for more than 5 years, and everything is reliable and safe

that's not even online

Maybe he was thinking about 50x.com ?

good catch

Is there a danger in KYC, in terms of the company you KYC with getting their data stolen?  I do not mind KYC, but am concerned about the company having personal data and wallet addresses, or am I over thinking this?

This happens and is a pretty normal thing to worry about. Services like exchanges could also use third party services to process your information so it's safe to say there could be more entities involved.

I suggest at least looking into kycnot.me for exchanges with lax kyc to no-kyc policies. But depending on your planned use cases, you may need to succumb to identity verification for it. IDK what are your planned use-cases but my advise is to weigh things down -- decide for pros you absolutely need and cons that are bearable for you.