How does KYC check scam?

[charlzyeby]

Most ICOs and crowdsales have started asking for KYCs because they believe KYCs check scams. But how does it work ? do you lose your anonymityor confidentiality is ensured?

[kezimo]

"KYC" means "Know Your Customer". That's a legal term for certain things that businesses that qualify as "Money Services Businesses" have to do in order to operate legally. Essentially it means that they have to collect certain kinds of information from you to do business.

[milhaop]

I know it's not comfortable share personal info, but in order to be listed onto the best exchanges, kyc is a needed, unfortunately. In the near future, with the imminent decentralised exchanges domination, kyc will be almost over.

[scootcho]

It doesn't check for scam. However, it will deter people from using multiple fake names & emails for registration if only KYC accounts are accepted. KYC is part of the process under AML (Anti Money Laundering) regulation.

[HabBear]

Most ICOs and crowdsales have started asking for KYCs because they believe KYCs check scams. But how does it work ? do you lose your anonymityor confidentiality is ensured?

Developers of ICOs and crowdsales don't ask to know their customer because they believe it will check scams. They ask to know their customers because laws require it, and if they don't follow the law they'll be put out of business.

It's regulatory moviation only.

Now, the regulatory agencies believe knowing who the customers are does find what money is moving between whom, which is largely to prevent the financing of terrorism activities.

[cryptomadu]

Anyone here. Don't you think that giving your sensitive details to a company might be a risk ?. I know we have to send those details if we are asked to do so. But how can we know which company to trust and which to not ?. most of the time they ask for the passport. Can they steal our identity ?

[HabBear]

Anyone here. Don't you think that giving your sensitive details to a company might be a risk ?. I know we have to send those details if we are asked to do so. But how can we know which company to trust and which to not ?. most of the time they ask for the passport. Can they steal our identity ?

How else do you deal with cryptocurrency exchanges?

If you don't deal with cryptocurrency exchanges how do you buy or sell Bitcoin from / to fiat currency?

The KYC laws are appropriate. Any company can fraud you, regardless of whether they know who you are or not.

[flying_bit]

if you're afraid of identity theft then why are you joining the ICO and wants to spend money for a project you think will only fraud you?

Basically, we only join ICo that we believe is a good project thus we spend money to invest. With that in mind, then we follow the process and one of them is KYC.

[trananh1996]

It's like identifying the user. And they check it very carefully. I do not understand what is the purpose of it

[cryptomadu]

Anyone here. Don't you think that giving your sensitive details to a company might be a risk ?. I know we have to send those details if we are asked to do so. But how can we know which company to trust and which to not ?. most of the time they ask for the passport. Can they steal our identity ?

How else do you deal with cryptocurrency exchanges?

I mean for bounty campaigns.

[r1s2g3]

Anyone here. Don't you think that giving your sensitive details to a company might be a risk ?. I know we have to send those details if we are asked to do so. But how can we know which company to trust and which to not ?. most of the time they ask for the passport. Can they steal our identity ?

How else do you deal with cryptocurrency exchanges?

If you don't deal with cryptocurrency exchanges how do you buy or sell Bitcoin from / to fiat currency?

The KYC laws are appropriate. Any company can fraud you, regardless of whether they know who you are or not.

I am also wondering the same.The anonymity of bitcoin/cryptocurrencies is valid only when we are doing transaction in them. Moment you want to cash out then it is not an anonymous thing.

KYC is correct for companies so that they can know about there customer.

In turn, we should also do our due diligence while giving our money to company.

Since crypto currencies can be changed to fiat currencies, so both company and customer should take care that investment/transactions might not promote illegal activities or coming from illegal activities.

[equator]

Most ICOs and crowdsales have started asking for KYCs because they believe KYCs check scams. But how does it work ? do you lose your anonymityor confidentiality is ensured?

KYC is the one type of keeping information of the users who have enrolled in ICO so that if in future if any information asked by Law authority then you have to submit it. Ya it is 50 50 like you give your information to ICO company and now it is upto them to keep it confidential or they can also sell the customer data and get income from that. But if this ICO does KYC check then they will be legally following the procedure so that in future they should not be in trouble of getting money from illegal authority.

[verdi-crypto]

KYC is used to confirm your identity and to check if you have any illicit history, or any restriction that would limit your participation to the sale

[royalfestus]

It doesn't check for scam. However, it will deter people from using multiple fake names & emails for registration if only KYC accounts are accepted. KYC is part of the process under AML (Anti Money Laundering) regulation.

That's the idea. Just for data collection also for investors' safety.  I dont beleive it works to recover illicit history of investor, do u think illicit investors will use he correct detail but can keep investors record which can be compare later