Why KYC is important?

[Congyang]

in my opinion, kyc is very important to identify detailed data from investors or other participants. but I only agreed if Kyc was only directed by investors while for other participants it was not needed. because actually investors who have a greater number of tokens.

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[Pamadar]

KYC is really important for an ICO to have it because it can be the basis of how they will approach their clients or customers, it will serves as the verification of customers if they are eligible to buy an ICO project if there are some lists of restricted area to accommodate the ICO tokens. Some Crypto Exchanges also using KYC before requesting transaction processes.

In some point yes it's indeed can help verifying costumers from restricted countries as they can use vpn to participate but with kyc they will be verified and strictly needs to comply with government rules, but in the broad idea of kyc, it can also break the essence of being decentralized since crypto was created for this purpose.

[jdgranfiel]

It takes a little time to do some KYC but I don't have a problem with that. KYC is needed to ensure that all participants are real and not fake or dummys. Without so, an ICO will be populated by multiple and fake accounts. An unfair activity against those who are doing things the right and legal way.

[Rika eparani]

everyone already knows the kyc gap is KNOW YOUR CUSTOMER ,, kyc now is really much needed for ico or bounty, even the market needs some kyc, so that they do not avoid cheating the Doble account, so kyc is needed for the bounty campaign, filling requirements KYC filled in first and last names, ID cards and entered ETH addresses

[raptorez]

I do not think that the crypto-currency market needs anything like that at all, I do not understand why the KYC process should exist at all. Let's think, can not we now be able to sell fake documents and go through KYC in this way? I think that this is possible, it turns out that the process of KYC is useless.

[shaheer001]

I think KYC is good practice as in near future the world regulatory authorities will strictly implement the rule about KYC as it will discourage the money laundering.

[jatin729]

KYC is mandatory in crypto because at least companies can be able to know whose their investors, bounty etc. It is also important because there are some countries which are not allowed their citizens to invest in ICOs so companies can easily identify those people.
Even when we are investing in stock market let's suppose if you want to invest in IPO than you need to be register on portal and going through KYC procedure.

[raghovsing34]

A lot of ICOs are facing a problem from their investors due to the KYC. Voluntarily complying with KYC regulations provides many advantages to the Offeror and its investors, even if they are not currently explicitly mandated to enact such a process.

1. Cryptocurrency exchanges are beginning to exclude cryptocurrencies that did not properly implement KYC processes. Thus, not running such checks poses a long-term risk to a project. The Financial Times reported that New York Stock Exchange-backed GDAX says it “plans to list only a fraction of the hundreds of new digital coins that have been invented this year”

2. Voluntary KYC compliance may help ICOs reach a larger global audience and expand the number of jurisdictions in which they can take place. Such compliance allows easier reach to investors in America, Britain, Canada and elsewhere.

There are other restrictions also imposed from SECs and banks which greatly limit the activity of the company in the future.

We know not everyone is happy about KYC and some people don’t agree with it ideologically, especially when it comes to cryptocurrencies, where transfers are anonymous, or at least pseudo-anonymous.

However, for the adoption to seamlessly occur, the company holding the ICO needs to have KYC, which otherwise will create issues for the company in the long run, which is bad for both the investors and the holder of the company.

KYC is not done by a company to know where their money comes from. To be honest, a company rolling out its ICO cares about the cash inflow and not about their identity. It is a means of due diligence so that they are not prosecuted by their country of operation.


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Your article was really helpful for me. Thank you very much for sharing.

[dnovsckym]

In order for companies to be able to attract more investors, KYC is very necessary!

[BennyK]

KYC is very necessary in checking the funding of terrorism and money laundering. It is required for verification purposes and it is used to meet the general requirement of many authoritative bodies like the SEC.

[mohitsharma67]

In my opinion KYC is very important to avoid scame. It is important to identity real investor.

[adamtruong]

I think this is not good. Number of bonus coin is too small, user information is very valuable. Is the exchange good?

[Tondya]

KYC is only important for ICOs developments not to allow to take part in ICO citizens of China and the United States.

[ngocdhbk2]

KYC is very important for ICOS campaigns by creating trust for investors. Demonstrated that the campaign is well invested in addition to avoid cheating with many cheat investors. KYC also revealed that the negative side is the personal information of the participants are leaking and being sold online is very dangerous.

[Abiodun99]

Imagining going to an office or school without an identification card or traveling abroad without a passport or boarding pass. For crypto exchanges, that's equivalent to doing business with people you have not personally vetted. These is where kyc comes in. The process is pretty much similar to when you first opened your bank account where you were likely to fill personal data sheet and submit one or two ids

[ubay]

KYC is stands for "Know Your Customer" and i think this is a system that identifies the true identity of a participants. And this KYC is important in order to validate cheaters and those scammers. But sometimes it can be used also by those scammers also by pretending to have a n ICO and will ask your information for their own benefit like using your information for bad intention and  this is the disadvantage of KYC system implemented.

Good thinking, investors also need trust in ICO developers with KYC. So they can get to know each other and investment will be safe.

[Tharu96]

Great article and thanks for sharing here. The KYC (Know your customer) is one of the most important thing to participate in any ICO project. In near future it will be more important because of some counties are regulating the cryptocurrency in their countries.

[bountyhunter2018]

The importance of KYC or " Know Your Costumer" is the policy is to prevent money laundering, identity theft, terrorist financing, and financial frauds.And to identify the customer and verify his/her identity by using reliable, independent source documents, data or information.

[GFE]

KYC is necessary to defend people and their investments. For ex., it could be bounty participants where KYC helps to avoid multi-accounts. Also it could be ICO participants (for ex., to avoid buying all tokens with several investors).

[RohitMalhotra123]

KYC means know your customer. It is a very good thing and very necessary in future. It is a good policy to protect from fraud peoples. In coming time it is very must in crypto world safe for all.