Why most ICOs ask for KYC?

[Thadeous]

Be careful providing personal documents to these ICO projects.  Remember, if it ends up being a scam, you don't know what they will be doing with your documents.  They might end making fake passports of you and selling them for illegal activities.  I never FOMO ICO's so I avoid the ones that require KYC.  

Good point! And that's why the best time to provide KYC is right after ICO ends.
Especially after you got positive feedbacks concerning tokens distribution among investors.

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[mirofame]

They are asking for identification because of the regulatories, and maybe is a bad thing, but i think is for better. They are just trying to prevent more scams, hacking, cheating, and to invest their money in development, not sending them to someone who isn't even real. Maybe in the future, every company will be asking for your ID.

[Sarastiche]

It is to keep a track record of people investing into the project, for data analysis interms of gender,country of residence which is very important, to avoid investors from country ban from investing in ICO, base  on there regulation

[bigdogdan2]

to help ensure that the people contributing aren't from the countries prohibiting ico

[creeps]

Be careful providing personal documents to these ICO projects.  Remember, if it ends up being a scam, you don't know what they will be doing with your documents.  They might end making fake passports of you and selling them for illegal activities.  I never FOMO ICO's so I avoid the ones that require KYC. 

Its too risky to give confidential details about yourself, its right that you might get scammed or hack one of your accounts. But if you really believe on a specific project, maybe try to limit giving the right information. ICO's is great in terms of making profit, but you are risking yourself from this so you better think again.

[Endikadija]

At first, they asked for a verification of identities to avoid having invertors from the United States or China where ICO are prohibited. Since then, it has become a marketing element to prove the "seriousness" of a fundraiser.

Today, you have to pay attention to these companies that request a KYC, because it could be a scam that would like to steal your private information.

And then there are some projects that asked about KYC but at the end of the story, they are all turning into the scam project. This KYC story has been implemented by so many caused by the IP restriction can't prevent people from those countries are banning ico to participate in the ico. They can use  VPN or something like that to avoid it.

[Kawasanz]

There is a positive side of KYC, an example of ICO taking this proactive approach is SwissBorg, where "most teams come from the banking industry" and protecting investors and clients is very important. Their KYC process is simple - investors are required to subscribe and provide personal information such as name, address and date of birth. He will then be required to upload an official identity card and proof of residence (such as an official government letter). investor's personal information and proof of identity are then calculated and compared to the legal database.

[ajmapalo22]

Hi , Recently most ICOs ask participants for KYC!, why the do?
Is there any official organization regulate them and monitor ICOs?

There are lots of ICO presented in the market and it is quite hard to detect which one is legit or scam it is a good thing that some requires KYC for investors as well as info about developers and owners with that you can get an assurance that their project are good and trustable also KYC will prevent entering of investors that are not in good faith and only join ICO for illegal matters.

[Kitobe]

There is a positive side of KYC, an example of ICO taking this proactive approach is SwissBorg, where "most teams come from the banking industry" and protecting investors and clients is very important. Their KYC process is simple - investors are required to subscribe and provide personal information such as name, address and date of birth. He will then be required to upload an official identity card and proof of residence (such as an official government letter). investor's personal information and proof of identity are then calculated and compared to the legal database.

Great point. the KYC should be simple and minimal in term of information provided. It is also the symbol of commitment from investors that they are serious enough to provide personal information for ICO project. As long as those information are not used for illegal matter then KYC is ok, in my opinion.

[Stradivarioos]

I think this is all because some countries prohibit the use of crypto-currencies and conduct similar activities, and for such companies to be legally passed they introduce such restrictions.

[otunayode]

Most times ICO ask for KYC because of the regulations of their business and financial environment. If what such ICO represent is securities in the eye of the law guiding trade and investment, they may be required to have information about their customers for security reasons.

[Gorgeous011235]

That's a good point..but you should know that most of the times ICOs are pushed by some kind of governments regulations to ask for KYC...
just like exchanges do if we want to move big money...
Another reason for which ICOs ask for KYC is to avoid more than one contribution x person..
So in the end i think this is not so bad...

[mrcastelo]

I think the reason for this KYc thing is to ensure that the participants does not ccame from countries such as US and China that strictly prohibits their citizens to participate in ICOs.

[arkaasay]

In the United States, there is an illegal decision against Ico. Only identity documents are required in China. Everyone who participates in the ICO sees any citizenship restrictions. In turn the company should be able to provide detailed registration information for ICO participants

[karungbitcoin]

In my opinion they would like to complaince AML/Anti Money Laundry so the token not use for illegal action or other fraud activity. But should be KYC procedure only for big investor only so purchase the token will be more efisien for medium to small investor.

[Thadeous]

In my opinion they would like to complaince AML/Anti Money Laundry so the token not use for illegal action or other fraud activity. But should be KYC procedure only for big investor only so purchase the token will be more efisien for medium to small investor.

It's actually hard to define which size of ICO requires KYC.
Personally I don't see any problem in KYC procedure after ICO ends.
And I don't think KYC somehow hurts our crypto privacy, because we always can buy tokens on exchange later anonymously,
just a bit more expensive.

[Duzenn]

Since the us and China have banned the ICO, their ICO targets are not for the two countries.
So they need KYC validation to verify which country the participants are from, but most of the time our KYC data security is not well protected.

[Thadeous]

Since the us and China have banned the ICO, their ICO targets are not for the two countries.
So they need KYC validation to verify which country the participants are from, but most of the time our KYC data security is not well protected.

US never banned ICO. Try to avoid rumors.
There is so called US Securities and Exchange Commission.
They released the strict Statement on Cryptocurrencies and Initial Coin Offerings
Many ICO do not meet such requirements aAnd that's why most of them registered outside US and do not accept US citizens.
Simple as that.

[Iyanu14]

The ico organisers are asking for KYC in compliance with regulatory body against it. USA for instance SEC rule is against it likewise China and if you see many ico these days they will state it clearly that people from such countries are not allowed to participate in their ico.

[hesham51]

Many-Many thanks for all your responses , Now it's quite clear what they need KYC for and what are risks behind this procedure ,

Usually I go with KYC with ICOs without  any aware, now it down on me how risk it is.

Thanks again