Bitcoin Forum

I was reading an article of recent, the author was explaining Anti money Laundering (AML) and Know Your Customer (KYC).

I see these two concept to be very key metrics in DAPP and Cryptocurrency.

Here is what I want us to discuss.

What are the relationship between AML, KYC and ICO

i don't understand why only members of bounty campaign are verified ?
Why doesn't the team pass the verification ?
This would save us a lot of scammers.

There are handful articles that you can find that deals with this topic. By searching them, you will find plenty of those articles that explained the relation of those that you are asking. Here are some of them:

1. Why every ICO should comply with KYC and AML regulations (https://medium.com/@unitedcrowd/why-every-ico-should-comply-with-kyc-and-aml-regulations-db55ef62aff1)
2. Daneel ICO : What is a KYC/AML process and why it is important ? (https://medium.com/@daneel_project/daneel-ico-what-is-a-kyc-aml-process-and-why-it-is-important-e922d4f9b169)

ICO needs to verify their investors so they would comply to the AML Policy or the anti money laundering Policy in which it needs KYC (know your customer) to avoid it so to make it short to avoid money launder in ICO they need to conduct KYC.

Do you know why IEO does things better than ICO? IEO findings that took place on top exchanges verifies project teams not just their investors through KYC, on ICO side it's always investors going through verifications not the teams, this is so wrong and that's why we had more scam devs in ICO days

Simply put, an ICO could be used for money laundering and even worse could be made solely for money laundering. To prevent such thing from happening any ICO who obeys the law and regulation need to have KYC which in short verifying their customer's identities to prevent money laundering and that's whats called AML atleast that's what I know in crypto space.
But usually it only happen if ICO have customers that resides in US or Europe.

Maybe because they are checking if  you are from US citizen which is you need to take any legal measure and they need to follow strict securities before launching or asking an ICO investment in the US.

Check it here https://www.skalex.io/ico-law-compliance/ .


This is not a secured way to be verified because they are also at  risks any one who takes KYC and can steal their personal details.

It is needed nowadays especially that online transactions were used to do such crime, and crypto said to been used by those illegal users, government needs to be much stricter for the safety of many. If we doubt projects asking for KYC then better not do it. I only do few KYC before one which is registered in our country, then some bounty or ICO before that have been backed by top companies.

Just as the names goes, they all have different functions but are all used to achieve a result. Owing to the location most projects are based on, they are bound to comply with the law enforcement and in this case, KYC and AML comes to play. If you notice, KYC and AML are done together, that is, if an investor want to participate in an ICO and he is requested to be verified, he will send the required documents which will cover both for kyc and AML, hence being verified to participate in that ICO. Therefore, the relationship I see there is, they all work together to help a team acquire genuine funds for their project, such that, they will not be sanctioned. This genuine funds, also means, there are countries that are not meant to participate in that ICO, hence the verification also helps them to be free from unnecessary issues with the law enforcement agencies.

Bounty required kyc done when there are large number of people on participants which always result to two or multiple accounts belong to one participant.
For the team, most of the projects you come across has their team display and their profile indicated in the profile.
Social media profile speaks a lot about someone and if you check most of the ico reviews platforms, they make sure they identify each team member details including their locations.

There is no direct relationship between them, but rather intersections, so the ICO is a process of distributing the currency instead of mining, and therefore the distribution method is based on an attempt to reduce fraud so that a user does not register the same several times, so they resort to some methods to verify users such as KYC.

Some scammers use it as a method to obtain user data.

Many ICO project need to pass KYC before investing on their ICO because any have project not allowed for United State district to participate on ICO project and their government not allow for investing on ICO, to protect investor from United State is the reason why many ICO project have to submit and verify KYC before investing. I think the rule is easy and we are not united state citizen can join on many ICO project although have submit KYC first time. Maybe the way how to keep safety with many ICO project before getting big problem by SEC if allowed for united state citizen to be investor on ICO project.

I think KYC requirement is unnecessarily made complicated by several platforms and projects and being decentralized and blockchain based projects there should be one app and one id for everyone participating in here and if some project requires kyc the user should give his unique blockchain id that contain all kyc data. I am surprised how such service is still not available.

Simply because the project knows where our information is needed, so they collect from us and sell it to those organizations. Our information is sometimes worth thousands of dollars, so be careful when giving it to anyone.
I just hope that one day Bitcointalk forum will elaborate on the rights of bounty hunters. If possible, I beg them to set rules for new campaigns, such as not to do KYC + deposit in advance of the project's token / coin so that bounty hunters will definitely receive a reward.

Thank you for opening your mind to discuss KYC and AML, maybe not only the US is banned but many other countries are also banned from the ICO. We couldn't escape when one of the bounties needed KYC, now the project is gone and we are worried that our identity will be used by strangers.

Yes, I have the same thought too.
If there is a stringent AML screening and a very strong legal agreement in place, ICO would become a strategy for funding new and real projects.

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Is this process to protect the investors or the investment?
I was thinking, the essence of these is to ensure that investors' determine a good project from a bad one, there by reducing risk.

[moderator's note: consecutive posts merged]

Usually ICO do this. Legit projects tend to ask for KYC to avoid such funds coming from hacked and scam activity. This will ensure that no investors on the project has been flagged for an illegal activity. Also scammers will definitely afraid to expose their identity if the funds they have came from doing a malicious scam project.

Too bad this method has been done by a lot of them to acquire information which they will be used to cover up their track what worse is the one got victim are the innocent for identity theft.

The relationship between AML, KYC and ICO is to ensure that the ICO project team is genuine so that they cannot use fake data to become a team, because with genuine KYC, the team cannot carry out money laundering (AML) openly to the public. , because they have been recognized by many people.

KYC is Know your Customer it is mean the project management must know who is their Investor. To prevent Money Laundring.
KYC has been implemented by konvensional banking and that is why people who did the criminal thing can not put their money into banking system.

We are all know how crypto make it more anonym. It is also to prevent terorism.

Ok, then what is the mandatory reason to submit kyc for bounty hunters? Money laundering isn't the only case. So many scammers could sell our information. This isn't part of altcoins discussion but stay active. definitely you will know the difference between all of this process.

This will indeed save us money and effort if we know who are the team behind it, some projects show the real information about the developers but we never know if the credentials are true some are just faking it, some are doing photo shopped and some are hiring and paying people to be part of the team, there's a lot of deception in the way these developers show their identity

The relationship between the three is very clear, if KYC is useful for identifying people who are joining the ICO and avoiding crime, because with the KYC the developer team can see and can be a benchmark for who is the person joining their ICO, and can select whether they deserve a profit or not.

A lot of reasons why ICO required the participants to submit their KYC before being qualified on yhe project;

-to prevent abusive and cheaters
- to comply with AML requirements and prevent criminal acts in the future
- overall safety of tokens
- they also wanted to make sure that the project is doing a real transactions with real identities

On the otherhand, I remember those times that this has been  a huge issue way back 2018 since many scam ICOs were revealed and that many KYC data were just sold.

In my opinion, an ICO is a token sale that aims to raise funds and finance projects undertaken by the developer team. KYC and AML are required for several ICOs because the developer team does not want to violate the rules and regulations in force in the country where the project is carried out. AML and KYC certainly aim to prevent illegal funds or money laundering

ICO is an initial offering and a way  of raising fund for the creation of new project while KYC was a strategy implemented by the SEC to catch or prevent bad actors in the cryptocurrency investment likewise AML they serve the same purpose but AML is the process that alloe the SEC to do background check on investors income if they have the possible income to invest the money invested in crypto.

Teams verifications only happens through top exchanges IEO launchpad, there is no way binance exchange will allow a new project on its platform without proper verifications, this is why I trust IEO projects on binance exchange and other top exchanges too, this is something you can't see on ICO crowdfunding

I have seen this as a requirements to some of the Bounty campaigns that arise here in cryptocurrency business.
Sometimes even scam projects they've required this aside from their plan is to collect fund from the investors. In fact,
this should be apply also to all members of the project team that will share an opportunity to everyone here, at least with
this We as a bounty hunters confident that we will be compensate nicely in the end.

In my opinion, the relationship between KYC and AML is critical to the long-term success of an ICO. Unfortunately, the ICO room and crypto room are already riddled with scams and cons, criminals are also using ICOs to help launder their money and fund their criminal companies.

Some projects do require KYC, because it is useful to know who is a
user and there are also some countries that are not allowed to follow
or are limited in a project that is being developed.

What do you think will happen to projects that fail? will the data of people that particpated on its ICO be used without their consent or it will be disposed? This is very important with or without KYC and AML procedures.

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In this age and era where data is the king and the new oil of the economies, do you think the US will allow its citizens to give their data out that way.
You see what the data war has been between the US and China regarding Tiktok. I dont US will allow its citizens to give away their information in ICO.

But, i dont really know what is their regulations in this regard.

[moderator's note: consecutive posts merged]

not all failed projects are hackers and wants to steal your kyc .they wont use it but they will keep it on a place that is safe or they can also delete all of the kyc files .

aml and kyc are pretty simillar , thats what i heard before but ico was different .  some ico requires an kyc but for dapp , dapp means decentralize app . it has a decentralized word on it and kyc is irrelevant with that however the word cryptocurrency is general and there can be centralized included on it which requires kyc just like ico .

The compliance of KYC is implemented by different ICO’s; thus, it is unsurprising to see some ICO projects commit identity fraud.
For instances:
[1] Socialremit - Adviser with fake picture - stealing people's identity (https://bitcointalk.org/index.php?topic=5075610.0)
[2] Rethen Foundation - SCAM (https://bitcointalk.org/index.php?topic=5009886.0)

With such circumstances, it is difficult to trust any project that requires KYC as it associated with such risk. KYC could be extremely useful if it is applied appropriately, but nowadays, the main purpose of KYC can no longer be observed in projects. It should be protecting our funds from defrauders, but now, it just puts people in a tough situation. Nevertheless, ICO, KYC, and AML are connected in a way that KYC is used to for AML in ICO’s.

Because there are quite a lot of ICO projects that are scams, and they are also used for money laundering. So it is necessary to
apply KYC and AML to prevent this from happening. There are also ICOs that impose KYC to obtain documents from users that are
used for illegal activities. My advice is to avoid ICOs that impose KYC and AML, because there is a possibility that investors personal
data is misused as well.

If the project doing ICO is legit, that will be ok but most of the ICO now are asking their investors to do KYC so they can steal their investor's information, we have seen hundreds of project that have launch ICO with KYC but where are they now, some of these projects sell their investors credentials in the black market and some project do ICO just to steal people's information, even if their ICO fails.

KYC and AML being used by icos to avoid the regulation from the countries that were not allowing its citizens to join in the ico. The developers can know where the investors are coming from and the team can avoid the legal action against them when the project have become a scam project.
It says KYC and AML just a way to verify the investors and this is used by the scammers to avoid the restricted countries like US.

KYC/AML itself will not protect an investor who personally gave access to his account on the exchange to a scammer who was able to convince the client of his legitimacy. It's like giving the keys to your apartment and giving the address to the first person on the street, and thinking that your house will remain safe.