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Author Topic: Determinations of KYC and AML  (Read 309 times)
virtualinvestor770
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August 26, 2018, 08:59:46 PM
 #1

What determines if an ICO requires KYC and AML?
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August 27, 2018, 05:28:10 AM
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Their headquarters, where they plan to operate, and if they're even registered. They may also implement KYC procedures even if they aren't required by law.

If you're asking how to know whether or not they implement the procedures themselves, it should be on their site somewhere or you could simply try signing up.

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August 27, 2018, 06:20:10 AM
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KYC is very much important in my opinion this cannot be left.

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August 27, 2018, 06:58:13 AM
 #4

What determines if an ICO requires KYC and AML?

If they requires it? I think it is based on their own standard. I don't think that anybody requires them for it (at least for now, there are no proper regulation that I know of), it is just on their own decision so as to prevent multiple registration and also protect the subscribers.

Preventing multiple registration would help them reduce fake registration which will make their job also easy. It is more rigid when they require uploading of passports and approved national  identity cards. This is a good check to scammers and spammers.

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August 27, 2018, 07:01:09 AM
 #5

Scammers and jerks will find new way dont worry but though it is essential Tongue

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August 27, 2018, 08:29:21 AM
 #6

Thanks for the information everyone. Why do some ICOs restrict the US and certain territories?
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August 27, 2018, 09:18:18 AM
 #7

Their headquarters, where they plan to operate, and if they're even registered. They may also implement KYC procedures even if they aren't required by law.

If you're asking how to know whether or not they implement the procedures themselves, it should be on their site somewhere or you could simply try signing up.

Another factor is whether the ICO is open to investors of all countries. Some countries, including the US, may have onerous restrictions of their citizens invest in ICOs. You could argue that cryptocurrencies are stateless, but governments have a way of establishing nexus and coming after you. That is one reason why ICOs (and even gambling sites) restrict participation from US citizens.


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virtualinvestor770
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August 27, 2018, 10:23:51 AM
 #8

Their headquarters, where they plan to operate, and if they're even registered. They may also implement KYC procedures even if they aren't required by law.

If you're asking how to know whether or not they implement the procedures themselves, it should be on their site somewhere or you could simply try signing up.

Another factor is whether the ICO is open to investors of all countries. Some countries, including the US, may have onerous restrictions of their citizens invest in ICOs. You could argue that cryptocurrencies are stateless, but governments have a way of establishing nexus and coming after you. That is one reason why ICOs (and even gambling sites) restrict participation from US citizens.
With implementation of kyc and aml, will that prevent countries from coming after the company
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August 27, 2018, 05:27:58 PM
 #9

may have onerous restrictions of their citizens invest in ICOs. it should be on their site somewhere or you could simply try signing up.
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August 27, 2018, 05:31:32 PM
 #10

What determines if an ICO requires KYC and AML?

Do not invest in ICOs "no one will force you to invest" unless you trust who is behind those projects.
If those projects are registered and have headquarters" like banks," they will be required to know their users, but if they are not, they are trying to scam you and selling your data in the black markets.
So do an in-depth search of the project, the developer team, and their personal information before sending any data.

For more read, the letter addressed to the United States Senator Ron Wyden[1] or this:

Generally, under existing regulations and interpretations, a developer that sells convertible virtual currency, including in the form of ICO coins or tokens, in exchange for another type of value that substitutes for currency is a money transmitter and must comply with AML/CFT requirements that apply to this type of MSB. An exchange that sells ICO coins or tokens, or exchanges them for other virtual currency, fiat currency, or other value that substitutes for currency, would typically also be a money transmitter,

[1] https://coincenter.org/files/2018-03/fincen-ico-letter-march-2018-coin-center.pdf

virtualinvestor770
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August 27, 2018, 06:22:49 PM
 #11

What determines if an ICO requires KYC and AML?

Do not invest in ICOs "no one will force you to invest" unless you trust who is behind those projects.
If those projects are registered and have headquarters" like banks," they will be required to know their users, but if they are not, they are trying to scam you and selling your data in the black markets.
So do an in-depth search of the project, the developer team, and their personal information before sending any data.

For more read, the letter addressed to the United States Senator Ron Wyden[1] or this:

Generally, under existing regulations and interpretations, a developer that sells convertible virtual currency, including in the form of ICO coins or tokens, in exchange for another type of value that substitutes for currency is a money transmitter and must comply with AML/CFT requirements that apply to this type of MSB. An exchange that sells ICO coins or tokens, or exchanges them for other virtual currency, fiat currency, or other value that substitutes for currency, would typically also be a money transmitter,

[1] https://coincenter.org/files/2018-03/fincen-ico-letter-march-2018-coin-center.pdf
To be safe, it looks like its best to implement KYC and AML to avoid all penalties from government. That would be my next step in the project.
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August 27, 2018, 07:16:18 PM
 #12

KYC is very much important in my opinion this cannot be left.
KYC is important for fraudulent ICO projects. This is unquestionable. They disappear not only with the money of investors. but also with their confidential information and copies of their passports, as well as with similar data of credulous participants in the generosity campaign ICO. In the future, and they will be able to sell this information.
In the case of bounty hunters, the ICO team here is not at all entitled to require them to undergo a KYC check. No country requires this. Some countries, such as the US and China, are only worried that their citizens will not suffer material losses because of the risky investments of their funds in ICO projects. Therefore, prohibitions do not apply to persons who are not investors in ICO projects.
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August 27, 2018, 07:33:50 PM
 #13

KYC is very much important in my opinion this cannot be left.
KYC is important for fraudulent ICO projects. This is unquestionable. They disappear not only with the money of investors. but also with their confidential information and copies of their passports, as well as with similar data of credulous participants in the generosity campaign ICO. In the future, and they will be able to sell this information.
In the case of bounty hunters, the ICO team here is not at all entitled to require them to undergo a KYC check. No country requires this. Some countries, such as the US and China, are only worried that their citizens will not suffer material losses because of the risky investments of their funds in ICO projects. Therefore, prohibitions do not apply to persons who are not investors in ICO projects.
So with implementing KYC and AML, does this mean its safe for companies to let US and China individuals participate in their ICO? Should a 4rd party site be used for KYC/AML?
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August 28, 2018, 04:03:53 AM
 #14

For KYC/AML 4d party can be useful but it should be trusted one. Cheesy

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August 28, 2018, 07:18:08 AM
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For KYC/AML 4d party can be useful but it should be trusted one. Cheesy
How difficult is it too b implement on a site that's already developed.
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August 28, 2018, 08:02:37 AM
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So with implementing KYC and AML, does this mean its safe for companies to let US and China individuals participate in their ICO?

Not in China because ICOs are banned there. They have to be registered with the SEC in the US because they're not allowed to operate there otherwise and they can only serve accredited investors. Both countries' regulations go beyond a simple requirement of KYC/AML.

Should a 4rd party site be used for KYC/AML?

What do you mean? KYC/AML procedures can be outsourced to third parties, if that's what you're asking.

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August 28, 2018, 12:04:35 PM
 #17

Thanks for the information everyone. Why do some ICOs restrict the US and certain territories?

Because in some territories ICOs are either illegal or legal grey areas.

For example as soon as founders allow US citizens to take part in an ICO, without actively seeking out the SEC's approval or abiding its regulation, the SEC will have a close eye on them; legal problems being almost assured regardless of the founder's country of origin or operation.

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August 28, 2018, 12:24:16 PM
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So with implementing KYC and AML, does this mean its safe for companies to let US and China individuals participate in their ICO?

Not in China because ICOs are banned there. They have to be registered with the SEC in the US because they're not allowed to operate there otherwise and they can only serve accredited investors. Both countries' regulations go beyond a simple requirement of KYC/AML.

Should a 4rd party site be used for KYC/AML?

What do you mean? KYC/AML procedures can be outsourced to third parties, if that's what you're asking.

So after implementing KYC/AML, does a business have to meet other requirements for all countries that have individuals who may participate? What I mean by outsourced is there are a lot of companies that you link to your ICO website that will validate users and make sure they meet KYC/AML. Hence putting the responsibility of the user's data on them.
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August 28, 2018, 12:43:26 PM
 #19

Thanks for the information everyone. Why do some ICOs restrict the US and certain territories?

Because in some territories ICOs are either illegal or legal grey areas.

For example as soon as founders allow US citizens to take part in an ICO, without actively seeking out the SEC's approval or abiding its regulation, the SEC will have a close eye on them; legal problems being almost assured regardless of the founder's country of origin or operation.
Is there a document that has a list of countries  and regulations required?
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August 28, 2018, 01:17:08 PM
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So after implementing KYC/AML, does a business have to meet other requirements for all countries that have individuals who may participate?

Yes. KYC/AML procedures are only really for anti money laundering compliance. There may be other laws that need to be observed depending on the jurisdiction.

What I mean by outsourced is there are a lot of companies that you link to your ICO website that will validate users and make sure they meet KYC/AML. Hence putting the responsibility of the user's data on them.

I don't exactly get what you're saying, but yes, a third party can do the validation for an ICO. I'm not sure if they can take sole and full responsibility of the data though.

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