KYC is Killing the ICO - And the Entire Market

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As a result of new ICOs requiring KYC information, tens of thousands of investors are staying on the sidelines. This is having a strong negative effect on the cryptocurrency markets. Anecdotally, for the past couple years I invested in dozens of ICOs. I have no problem with trusting them with a BTC or more, but I will not trust them with my personal info. If Experian can't be trusted to keep our most important data safe, how can I trust a bunch of inexperienced ICOs?

KYC is supposed to help prevent money laundering, but does it really? Even if you have my name and address, how do you know the source of my funds? Furthermore, are blockchain companies based in Columbia required to report a suspected money launderer from Spain? It is clear that the point of KYC is to slow-down or prevent investment in blockchain projects and has no real purpose. 

We are seeing the results of this new trend right now. The growth rate of investment in ICOs is slowing and this is affecting the markets (don't get me wrong, there is still an uptrend).

We need a trusted way to verify KYC information that is safe and secure or maybe some of the more successful ICOs could lobby governments, especially the US government. To stop these KYC requirements that really don't stop money laundering. The US government is incredibly corrupt, if you do enough "lobbying" on yachts filled with strippers and you pass out a few paper wallets with some coins as a "sample", this KYC problem will be over in a matter of months.   

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Just to add, KYC is required to prevent investors from money laundering. Any ICO that requires KYC for bounty hunters and refuses to pay if they do not fill out their private info should be sued. A bounty hunter can't launder money and doesn't have any requirement to fill out KYC. This is just a tactic used by greedy ICOs to not pay supporters. Know that projects that steal from bounty hunters are just as likely to steal from investors, employees and future supporters.

[anahata]

Well no one wants to mess with US government. That's why the restrictive KYC. And no one wants to have repeat of what happened during BAT ico. 4 seconds and poof!!

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Well no one wants to mess with US government. That's why the restrictive KYC. And no one wants to have repeat of what happened during BAT ico. 4 seconds and poof!!

They aren't messing with the US government by requiring KYC from bounty hunters. They are misunderstanding (IMO purposely misunderstanding) the requirements and intentions of the US government.

I do also have a problem with KYC for investors, but I know regulation is inevitable. Banks must be protected at all costs. Fools and the unlucky always lost their money and scream to the government for help, which they are happy to do for votes and some donations.

[anahata]

Well no one wants to mess with US government. That's why the restrictive KYC. And no one wants to have repeat of what happened during BAT ico. 4 seconds and poof!!

They aren't messing with the US government by requiring KYC from bounty hunters. They are misunderstanding (IMO purposely misunderstanding) the requirements and intentions of the US government.

I do also have a problem with KYC for investors, but I know regulation is inevitable. Banks must be protected at all costs. Fools and the unlucky always lost their money and scream to the government for help, which they are happy to do for votes and some donations.

Where the bounty hunters came in picture? Bounty hunters have no obligation to do KYC, the tokens given to them, for all purposes, are like a gift. they are not investors. And we all the intentions of US government, we have been here too long.

[BountyLord]

Not agree that KYC is killing the ICO. KYC must have option for regulated ICOs. Licensed companies must to perfom KYC procedures due AML regulations, but chance that this ICO will be scam is lower then unregulated ICOs.

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Not agree that KYC is killing the ICO. KYC must have option for regulated ICOs. Licensed companies must to perfom KYC procedures due AML regulations, but chance that this ICO will be scam is lower then unregulated ICOs.

I think it creates a situation where whales and big banks can invest in an ICO, while a bunch of others are forced to buy on the market at a higher price later if they want a piece of the action. It excludes people and creates a profit opportunity.

That's all fine and dandy until its YOU on the other side of the fence.