Know Your Customer

[maimainguyen05]

This is what we have seen in some ICO's but for me this KYC (knowing your customer) is important because we will be able to know the one that you are dealing with is legitimate in their dealings when doing bitcoin transactions and so that you will know if that customer is trustworthy or not.

KYC is a good way to know who you're dealing with but it's not good enough. As I know there are a lot of investors still use fake information to pass the KYC of any ICO to hide their real identity. I think the upcoming ICO should find out the new way to improve KYC to avoid these cheater. But I'm still considering about why they need to use fake information for KYC? To avoid taxes?

[South Park]

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.

That's not the issue here. I'm talking abut KYC, which is a legal thing.

He only read the heading which is a bit different from what op really mean! Kyc is good to me, every transactions that is above  $5,000 is been reported to the financial and regulations agency of my country and this is done in other to control looting of public fund and anti terrorism.
In cryptocurrencies, I think this is highly needed in other to regulate the same issues. We are living with evils people and technology as beautiful as blockchain should not be used by those evil mean to loot money to fund they evil intentions.

Regulation may be good in some cases but I think they are going to try to kill bitcoin with regulation, it is going to be so difficult to use bitcoin and follow all the laws that most people will prefer to just drop it and use fiat instead and if you do not think that can happen look at what happens to US residents, the US regulation is so strict that many banks and financial institutions prefer to not accept US citizens instead of complying.

[fiulpro]

KYC as the name suggests is Know Your Customer which means it is an amount of information about the customers that a service provided, be it a bank, ICO, or any other institution seeks to know the authentication of the customer, the trustability and the degree of genuineness of the customer. This is not necesaarily for the government, but can be used when some fraudulents happen.

Now the cap that u talked about of $3000 or somthing around that, this kind of cap is set because these are high amount of money being transacted and might possible need taxable attention. Thus the KYC information is to be provided to the government. Now if u sending and receieving $10, the bank actually doesnt even care, but with higher denominations, its inportant for them to play a transpaent medium between its customers and the authorities it runs under.

[JesusCryptos]

This KYC procedure marks probably the beginning of the end of anonymity in cryptocurrencies. It may seem a little thing how, but you will be surprised how much it can grow, at the government's orders.

[francojon]

This KYC procedure marks probably the beginning of the end of anonymity in cryptocurrencies. It may seem a little thing how, but you will be surprised how much it can grow, at the government's orders.

at the end of the day you will have to identify yourself to use your money, unless you use localbitcoins or localmonero to change, and that only works for small quantities.

[Semosuchi Tesongrato]

It's very disturbing, and it's against the philosophy of cryptocurrency (crypto=hidden), but unfortunately this is the trend and probably very soon it will be illegal to make anonymous transactions.
Of course it will be still possible, but it will become dangerous.

[amzadabir]

Although the phrase “know your customer” may seem insignificant to most people, it has a very important meaning in the business world. The process of knowing your customer, otherwise referred to as KYC, is what businesses do in order to verify the identity of their clients either before or during the time that they start doing business with them. The term KYC can also reference the regulated bank practices that are similarly used to verify clients’ identities.
Banks and companies of all sizes have become big supporters of KYC. It is increasingly common for banking institutions, credit companies, and insurance agencies to require that their customers provide them with detailed information in order to ensure that they are not involved with corruption, bribery, or money laundering.

[burakdat]

Actually transactions that needs validation does not meant for reporting to the concern government agency. It is only an evidence to be collected that the transaction has been done and being validated and no need for it to be reported. The record will just be kept for the possibilities of tracing especiallynif the government would like to trace for it and subject for investigation if ever the transaction was part of an illegal activities of that individual and thus record will be used as evidence in the court if ever cases have been filed to that individual who was having the transaction. However, bitcoin does really need that identification because the system is already trusted even if without knowing your customer. In any transaction activities the only thing that needs validation is the selling of bitcoin to a fiat currency. But if thr transaction is bitcoin to any other cryptocurrency then it is not required.

[mafia15]

KYC is the very legit process for registering in an exchange or applying ICO investing
just by doing KYC we can sort out those who are cheating or those who are having multiple accounts KYC is a fair process

[bohr]

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.

This is common sense, if you are investing heavily in bitcoin they need to pay your taxes I know no one likes to pay taxes but if you want to stay safe and avoid going to jail then you have to do it, there is no point taking the risk I do not know how are the jails and prisons in your country but for what I have to heard from reports on the news I don't want to spend a single day in jail.

[orions.belt19]

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.

It's possible that the said financial institution (exchange or Western Union) would report that a transaction of $3000 or $10000 has been made without divulging your personal information. This may have been reported to AMLC or an anti-money laundering commission while keeping your personal information private. I'm not familiar with US jurisdiction but in my country, there is a Bank Secrecy Law which prohibits banks providing to authorities personal and account information about their customers and even to the government or other legal authorities. It's possible that a law similar to this is applicable to other financial institutions.

Even the government or legal authorities have unquestionable access to a person's private information. They must comply with a person's rights to privacy and present jurisdiction.

[yohaneshs]

KYC is a bank regulation which enforces financial institutions and regulated companies to perform all that they need to identify, document and validate the authenticity of the customer prior to any engagement. Comprehensive KYC policies serve as a risk mitigator and surveillance control to safeguard financial institutions, their systems and platforms, from being taken advantage of by money launderers.

As the legal documents, ICO must have a report about history assets before use it. If some day they has a problem in financial and tracking assets, they have data to argue.

[waskaplung]

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?

Expedite Client Onboarding And Verify The Identity Of Your Customer With Ease. Anti-Money Laundering. Anti-Corruption Solutions.

[boynegro]

Mostly the ICOs project that currently being developed, is obligated to have their investors KYC as the requirement from their country where the project was created. I think it is true that they need to submit the list of their investors KYC so either from the project and the country itself can trace the money that was used in the ICO, and in case something bad happens, so they can quickly process it.

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.

[donpepot]

Customer is the lifeblood of the business, so it is very important that we should know first our customers, our market before putting up a business. We can encounter different kinds of customers everyday, whether it is a bad or a good customer so it is a must that we should know what kind of customers we are going to face and encounter when the time we have a business already.

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.

[bohr]

Customer is the lifeblood of the business, so it is very important that we should know first our customers, our market before putting up a business. We can encounter different kinds of customers everyday, whether it is a bad or a good customer so it is a must that we should know what kind of customers we are going to face and encounter when the time we have a business already.

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.

But that standard is something that people in cryptocurrencies do not want after all many people joined bitcoin to get some anonymity and to be able to send transactions all over the world and to not have to deal with that kind of limitation, KYC has its good sides but in crypto most of what it brings is bad since I do not want to send my information to icos that may turn out to be scams.

[PlanetZebes]

I wouldn't like to send my sensitive information to a brand new company doing an ICO, so this is a very good question. Knowing what will be done with that information. As it stand, I would not be sending them any amount that would require for me to give them my info.

[rave123wallz]

Know your customer so that you will know what are they looking for.

[francis2]

Although the phrase “know your customer” may seem insignificant to most people, it has a very important meaning in the business world. The process of knowing your customer, otherwise referred to as KYC, is what businesses do in order to verify the identity of their clients either before or during the time that they start doing business with them. The term KYC can also reference the regulated bank practices that are similarly used to verify clients’ identities.
Banks and companies of all sizes have become big supporters of KYC. It is increasingly common for banking institutions, credit companies, and insurance agencies to require that their customers provide them with detailed information in order to ensure that they are not involved with corruption, bribery, or money laundering.

And this is why the development of cryptocurrencies is very important very few people want to give that information to complete a strangers that we do not know what they're going to do with that information they assure you they do nothing wrong with it but we can never be sure about it, we will need to trust them something that I think very few people in the forum actually do.

[bohr]

I wouldn't like to send my sensitive information to a brand new company doing an ICO, so this is a very good question. Knowing what will be done with that information. As it stand, I would not be sending them any amount that would require for me to give them my info.

I do not think anyone here likes the idea of sending their information to a bunch of people we do not know, while I do not like banks at least there are regulations on the information they need to ask and what they can do with that information, when you send your information to a new project located in another country you do not know what they're going to do with your information and that is very worrisome.