Know Your Customer

[francojon]

to have a successful business, you need to market your products but first thing is, you should know your customers. so that you will know if that customer is trustworthy or not.

You are widely missing the point. The Know Your Client is a procedure that the ICOs and many other business like banks, etc... have to follow in order to avoid money laundering practices or the use of funds for illicit purposes. In practice, is a pain in the ass for those of us who are legal investors.

[malikusama]

Exchanges can't work without the cooperation of government, exhcnages can provide data to the government when they want to do so.
Transactions from banks and exchanges can be traced by government and every country has its own rules and policies. Here in my country if your transaction limit crossed $8000 you will be given a notice from accountability department to provide your assets/income detail and their origin.

[Silberman]

The number that you're thinking about isn't 3000, it's $10000. That's the number that financial institutions in the United States make you fill out forms to know what you're doing with this money, as they want to know what the hell is going on with that big sum of money being transferred around.

But no, this isn't the case when it comes to ICOs and KYC as you're buying Bitcoin and not transferring that large sum of money to somebody -- you're actually buying something. Though I must say that it's pretty crazy the amount of ICO's are complying with the KYC regulations by the SEC.

How can one be sure that they are not sending the personal information to the government. I mean they are collecting the KYC data so you have to understand why that's a worry.

There is no way to know, coinbase fought against that in court and lost the case for some of their users, it is likely that in the future collaboration between governments becomes tighter so your only option is to never use exchanges again or to use decentralized exchanges, lets just hope that are ready by that time and we have several options that compete with each other.

[sinta23]

The ICO projects need KYC, in my opinion, they want to check whether there is a case that a person who owns multiple accounts to gain illicit from the ICO project or not.

most likely, yes, because of the growing bitcoin, sometimes there are people who cheat in having so many accounts, sometimes there can be honest, but also many dishonest by cheating a very unsettling bitcoin users.

[francojon]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

I guess it really depends on the government and where the ICO is based. If you have a company in the Cayman Islands you may not care much about whatever the IRS (USA) or the Chinese government think of your company nor have legal obligation to report.

[Dansamiv]

In business transaction, we must know who the customer really is. But in bitcoin transaction there are some privacy that no need to display. In a relevant to the question above it was stated that there are some rules in other country like U.S.A that beyond limits of transactions will be reported to government. In every countries, the laws implemented are not totally synchronize the same laws. So if you are in living in a certain country which the laws prohibit to made transaction beyond limits therefore we aware and adopt the rule of laws.

That is essential if you want to be a good trader. Knowing how to capture market sentiment and customers is an extremely important part of success.

[gantez]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

I got your drift exactly. Well, it depends on the country's financial policy. What I know about it is that , there are different stipulated amount that individual account should operate on and there are also regulation for how much should cooperate or company is allowed to operate with. So, anything other than that raises 'dust' on that account.

On the other hand, for a bitcoin transaction from an exchange or wallet monitoring depends on the country's digital currency regulation, if there is any 

[Biscutard]

In business transaction, we must know who the customer really is. But in bitcoin transaction there are some privacy that no need to display. In a relevant to the question above it was stated that there are some rules in other country like U.S.A that beyond limits of transactions will be reported to government. In every countries, the laws implemented are not totally synchronize the same laws. So if you are in living in a certain country which the laws prohibit to made transaction beyond limits therefore we aware and adopt the rule of laws.

That is essential if you want to be a good trader. Knowing how to capture market sentiment and customers is an extremely important part of success.

As a cryptocurrency investor it is hard to follow that person behind these ICO if it is a fraud because they were almost anonymous behind the internet that's why as an investors we should know the people who we are dealing with of these tokens before everything gets fucked up.  A lot of people today is so curious about of these new ICOs appearing everywhere like a mushroom so they did their thing to follow the owner of that ICO.

[jaredl]

I presume that we are discussing about KYC in US. So long your transaction is above $20,000 the exchanges will have to send your information to the government. This can be for the purpose of preventing money laundering but it is also for the purposes of tax collection.

https://techcrunch.com/2017/11/29/coinbase-internal-revenue-service-taxation/

I feel that KYC is an important step towards regulating the crypto industry and that all of us should be open to such KYC and/or taxation.
With KYC and regulations, the crypto industry will become more recognized and one day crypto assets will be treated as a real financial
asset and not a speculative tool.

For those of you who are staying in US, you should strive to report your crypto earnings accurately so as to avoid any issues with the government services.

And for those ICO, it is key that they implement KYC. With KYC, we may be able to finally open ICO to people in several countries which was previously banned.

[Xavieroz]

If the amounts are very high figures will eventually inform the government, everything is according to which government belongs, remember that some maintain more transaction regulations than others.

[ICOPass]

This was actually the case we developed ICO Pass - an easy way to collect all the KYC data from contributors. In such a way you would need to worry about reaching limits at all. We will launch the product in our own Token Sale end of February. We could give you out to try meanwhile if you are interested: www.icopass.id

[Shenzou]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

My geuss is that it is only a precaution thing, cryptocurrencies in gneral are anonymous so some poeple tend to use them for the wrong pourpouse like moeny laundry, and ICO are the perfect thing for this, they can eaisily dump moeny and get it back as soon as it goes on exchange, if you are a company and one person wants to buy 3000$ worth of token don't you know who is it, and why he is investing that much moeny into your company, does not seem specious.

[Altero]

For me, this KYC system may lead for us of losing our anonymous identity in cryptoworld. Since some ICO projects may required to submit our real identity which is recorder to computer, government may used this forms to trace individuals. It also be a purpose of bringing cryptocurrency legalization and each members can be easily taxed by the authorities just the used of these.

[astrid.uchiha24]

Actually these information or identities from various investors are being sent to their respective government because these are just purely regulation and i believe these are created in order to value the protection and interest of interested individuals due to scam issues of these ICO. I'm confident that these regulation must be done in order for cryptocurrency to gain the trust of the community.

[Pleione527]

This is an example of anti money laudering act or AMLA law in the Philippines it aims to monitor large amount of transactions which should be reported immediately when banks encounter them in their day to day transactions. It ranges to $10000 and above transactions. There is no bad thing on implementing KYC or know your client it is because it will only protect the countries from many illegal activities

[BettingTips]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

I think every ICO project is responsible for the law where they are putting their company and business registration there. It is entirely understandable for KYCs when it is mandatory for the government to prevent people in countries banned from trading cryptos from investing in ICOs. They will only know your identity, but the money you invest will be completely confidential by the ICO project.

[johnnywoo2015]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

Avoid all KYC ICO's. They are exactly the opposite of what we are trying to achieve with crypto-currencies.
I don't care about US regulations, I will never send my ID to a company only to give them my OWN money.

[lodi123]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

In a business  you should be friendly and entertain your costumers especially when you are beginners ti build your own market of selling and to be well known

[rickadone]

For exchanges, ICOs that collect KYC information, when are they required to send information to the government.

If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.

Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?

Obviously when you will be transacting very big amount then probably you will be noted by government officials in order to prevent money laundering and for preventing black economy reasons. It is highly recommended not to transact through bank or in more particular not through fiats. Because, tracing you down for high amount transactions will be easier for any government with the respect to currently available security measurements.

When investing into crypto currency or ICO, it is always suggested keep your transactions within only cryptos. Beginning with crypto currency, must be started with buying bitcoins by finding your local seller and transacting with him in fiats.

[jbarcenas18]

The beacon of success lies on the hand of customers so it is important to know who are your customers so you need to verify and identify the identity of each clients for the protection both the clients and the investment advisors, to avoid future risk.