Know Your Customer

[Ranly123]

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 am not in favor in this KYC program of some ICO, though it gives them security in their platform but it also crack down the anonymity of the person using the blockchain. Eventhough it is against the privacy of the customer, as long as the ICO needs it then it should be done in order to have a harmonious supplier to customer relationship.

[Pleione527]

Knowing your customer builds a good relationship between the buyer and seller. With this, you can easily identify which one will be your top priority however it would also mean that you should check every detail about the person, this could also be used as a backed up data so when you need to trace the person, you know where to start. Millions are being earned from this business, and it is not easy to identify who earns it. but thru KYC they can have a way to identify them.

[jbkg111816]

I think this policy of KYC or Know Your Customer certainly good only for those centralized system because in their way of handling their system they absolutely needs to get every basic information of their clients in order to avoid future problems. And besides if this were to implement in a decentralized system this would ruined their core system.

[0t3p0t]

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.

I think ICO's and exchanges will just keep those personal information we sent to them through forms but when they notice something unusual or shady I think that is the time where they have to take actions like reporting it to the government authorities or they have to hold your funds and they let you explain everything.

Here in my country, KYC/AML (Know Your Costumer/Anti-Money Laundering) was already implemented since I think that was way back 2014 in every local  exchanges and if they were in doubt or if they can detect something suspicious is happening with our account then local exchanges will take hold all our funds stored on their system and contact us and interrogation will be discussed either through a video call or have to settle it personally on their office.

I am not sure about this but that's what I have heard and read with my friends on social media sites. Well sometimes hearsay sucks but who knows? Though I read the news about it that was posted in social media. Though I don't even trust social media. About complying KYC's on ICO's I think they just want to know the real identity of it's investors and also to confirm that it is not a robot.

[metenjean]

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 ICOs collect KYC information is not based on regulation only, some of them might have a regulation problems with government and must report their customer ID but i think the reasons why do this KYC is because there are so many fraud and hacking problems and therefore they need something to measure each participants also work as an identity as to prevent imposture. There are lots of people doing tax evasion and as long as we paid our tax and even if the ICOs really reported our data, i dont think they will put any transactions below $10,000 to be a problem. There are so many whales out there that the government trying to catch and below that transactions is just a tiny pebble in my opinion 

[ShadowBits]

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?

Yep, the know your customer requirement is a necessary tool to avoid frauds and for bad people to have such privilege to join ICOs.

[khaled0111]

Not all exchanges asks for your identity, you can find many exchanges and use them just with using your wallet address.
In some countries like the US or Australia, the governments force exchanges to collect users informations or they will shut them down.
If you believ that you are not doing any thing wrong then revealing your identity is not a big deal.

[BingoDog]

I think that they are not directly reported to the government because they are just making a record with that information and they are just putting the know your customer policy so if there will be some problems either of two sides then there is something that they can rely on which is the records and few information about their concern.

Exactly, governement is not given the information immediately and by deafult but upon request.
Due to the law regulation they have to have KYC data ready and properly registered but they don't provide them all to governement without reason, just in case of some illegal or criminal act. And that seams reasonable, don't forget that this could be for your protection also. 

[GregH37]

Know your costumer is the process of a business and verifying the identity of itsclient . Know your costumer processess are also employed by companies of all sizes for the purpose of ensuring their proposed agents, cosultants or distributors and to protect from scammers.

Western Union and the rest of them that has to do with Banks are different from Blockchain and are not the same, so you shouldn’t think that. Banks are being controlled by the government of a country, so all those stuffs are needed for some purposes. If you don’t know, your bank account can even get blocked if the government notices some kind of suspicious transaction or something unusual, cause that’s how they discover those who are criminals and fraudsters. But as for everything that has to do with Blockchain, it takes place in Blockchain and doesn’t go out to the government.

[ProofOfLambo]

I think that they are not directly reported to the government because they are just making a record with that information and they are just putting the know your customer policy so if there will be some problems either of two sides then there is something that they can rely on which is the records and few information about their concern.

Exactly, governement is not given the information immediately and by deafult but upon request.
Due to the law regulation they have to have KYC data ready and properly registered but they don't provide them all to governement without reason, just in case of some illegal or criminal act. And that seams reasonable, don't forget that this could be for your protection also. 

It is interesting how the goverments that are more keen on having the KYC are also preventing people from investing. I think the process itself is stupid and prone to false info.

[fokinlipat]

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 governments tracks all your transactions as they are made through bank transfer ultimately. It is thus advised to pay proper taxes on earnings. In my country, government has send legal notices to people investing huge amount of money in bitcoins.

[belyaevi]

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 my country all the BTC investors are required to add KYC details while creating an account in the exchange. This is because people here open accounts in names of relatives to hide the investments and save tax.

[EtherATM]

Knowing your customer builds a good relationship between the buyer and seller. With this, you can easily identify which one will be your top priority however it would also mean that you should check every detail about the person, this could also be used as a backed up data so when you need to trace the person, you know where to start. Millions are being earned from this business, and it is not easy to identify who earns it. but thru KYC they can have a way to identify them.

Yep, I definitely agree with you that when you know your customer,you can build a good relationship. Even it is really much more safer for you if you know your customer ,I find it convenient for me to know my customer. Around us, there are many people who are scammers, has black money and to speak frankly I am sure that nobody can know or identify whether they are cheated and even lost lots of asset.In anyway,it’s really necessary for us to know our customer.

[Kevin77]

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 governments tracks all your transactions as they are made through bank transfer ultimately. It is thus advised to pay proper taxes on earnings. In my country, government has send legal notices to people investing huge amount of money in bitcoins.

Really? I don't think government will track those huge amount of  transactions since the bitcoin designed as peer to peer communications. Well, I would say if the government can easily manipulate this kind of problems for sure many users will complain as the anonymous can be easily track by the government. I don't understand if ever the government will interact since their.are many problems which needed to be solved here in our society which need to be prioritized instead the bitcoin community.

As long as it is peer to peer transaction, that would really not be a problem as government does not have the information of everyone's wallet anyway. However, in the idea of using exchanges, this is something that can be easily done.

If the exchanges have your record, obviously which they will as long as the KYC is in play, then there is no way you can hide your fiat transactions from them ? So, unless you are lucky enough to keep making transactions the P2P way, you should expect to be tracked.

[South Park]

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?

it's actually a bit dangerous also we do KYC because we hand over passport identits to companies that need KYC and I'm very afraid when our identity is for incorrect actions, I just avoid ICOs that use KYC.

It is not a bit dangerous, it is very dangerous, I have my doubts of giving that information even to banks and very established companies, why I will feel safer to give that information to a company at the other side of the world and how they guarantee they are not going to abuse that information they got, so this is going to make a lot of people think twice before investing in an ico or using an exchange.

[huzurkan]

know your costomer is a very disgusting system. That's why I was not given a $ 3600 award because i do not have a passaport.

[South Park]

know your costomer is a very disgusting system. That's why I was not given a $ 3600 award because i do not have a passaport.

If they did not tell you that beforehand then that was nothing more than a scam, icos with this new legislation are finding out they can get away with even more outrageous behavior, now at the beginning of their bounty campaign they can say they do not need KYC but at the end they can say their lawyers told them they need to comply and in that way they avoid paying to most users.

[perfect999]

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 governments tracks all your transactions as they are made through bank transfer ultimately. It is thus advised to pay proper taxes on earnings. In my country, government has send legal notices to people investing huge amount of money in bitcoins.

Yeah, that is the essence so that at the end of it all, they can know those of you who want to evade capital gain tax or not. Since I have seen the rate at which some users in the community have shown their level of detest for tax. However, if we all want to win, want bitcoin to keep developing without government trying to clamp down on it, we just have to let the whole procedure be and live with it since it seems we still cannot do without exchanging to fiats anyway.

[donpepot]

You know everything is reported to the government if the amount is big enough, it's very hard for a person to keep his identity hidden because every bank transaction is taken care of , and linked to your account.

There are people with black money who keeps it hidden and this is important to discover that the money is not black and someone isn't running from taxes.

Know your customer kyc is the process of a business identifying and verifying the identity of its clients. The term is also used to refer to the bank and anti-money laundering regulations which governs these activities.

[boynegro]

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?

The Know Your Client form is a standard form in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge and financial position. KYC forms protect both clients and investment advisors.