KYC challenges

[ekomic]

Please share any recommendations as to how to make kyc( know your customers ) effective!! and probably; is it even needed?

[Gershonxer]

In my opinion, KYC is needed to filter individuals who would want to take advantage of laundering money in the name of ICO. But has KYC been efficient? No. Even after KYC process, investors risk there personal information to third parties.
There are many crypto projects trying provide real world solutions to solve KYC issues such as Ontology, Civic, Bridge Protocol, TheKey etc whereby you authenticate your identity using your private keys m/smart contracts. With blockchain, it will help improve KYC in so many ways

[shekt4]

Please share any recommendations as to how to make kyc( know your customers ) effective!! and probably; is it even needed?

I sincere think that KYC is needed; in other to reduce financial fraud and money laundering....thanks for the idea of KYC in my own humber opinion it has really help in monitoring the movement of financial...just that am in total support for the need for ICOs platforms to collect less data as possible but must be accurate and containing some key details incase of subsequent cases of fraud...more than a regulatory requirement, the KYC has become an essential component of the customer experience. The digitization of company / customer exchanges requires that customers be given an easy and fast accreditation or identification experience. At the same time, the reinforcement of identification rules forces the company to manage and control an increasing number of channels, making the customer journey more complex. Solving this equation is therefore strategic!
For the end customer, this procedural burden of collecting and processing identification documents can be perceived as a real challenge, which can lead to a reduction in satisfaction associated with the complexity and length of registration which could lead to abandonment.
For the company, this abandonment is catastrophic: the identification becomes a position of costs, consumer of human resources, in constant growth.
On the basis of this finding, the outsourcing of KYC to specialized providers deserves to be examined - but i think is ok!!

[electronicash]

Kyc is very crucial in getting to know your customer but me i feel snapping with you holding the projects name is asking for too much, when you alrdy have a picture of you holding the ID card.

yes its needed now that projects are excluding investors from some countries like US and china.
 but a photo of us holding a projects name would really be too much, they could use it to make you appear like you are part of the team. that is going to be the most scary thing. the Id card adn a photo of you holding the ID i think is enough.

[sunsilk]

Kyc is very crucial in getting to know your customer but me i feel snapping with you holding the projects name is asking for too much, when you alrdy have a picture of you holding the ID card.

yes its needed now that projects are excluding investors from some countries like US and china.
 but a photo of us holding a projects name would really be too much, they could use it to make you appear like you are part of the team. that is going to be the most scary thing. the Id card adn a photo of you holding the ID i think is enough.

I complied to a KYC requirement of an exchange so I would increase my limits and they can verify that I'm a legit customer. Don't just send your pictures holding your ID's to a very unpopular site that you are investing.

But if the site you are sending and complying KYC is trusted and fair, I guess there's no problem with it. With projects, I don't comply with those requirements and won't join any of them. There are incidents that our identities are being sold and used for different activities that's why I no longer trust those projects.

[carlfebz2]

Kyc is very crucial in getting to know your customer but me i feel snapping with you holding the projects name is asking for too much, when you alrdy have a picture of you holding the ID card.

yes its needed now that projects are excluding investors from some countries like US and china.
 but a photo of us holding a projects name would really be too much, they could use it to make you appear like you are part of the team. that is going to be the most scary thing. the Id card adn a photo of you holding the ID i think is enough.

I complied to a KYC requirement of an exchange so I would increase my limits and they can verify that I'm a legit customer. Don't just send your pictures holding your ID's to a very unpopular site that you are investing.

But if the site you are sending and complying KYC is trusted and fair, I guess there's no problem with it. With projects, I don't comply with those requirements and won't join any of them. There are incidents that our identities are being sold and used for different activities that's why I no longer trust those projects.

I remember when i do make some investment with some good ICO's in the past where i do comply KYC which i know its really a risky decision but that thing do succeed and give out some good returns.
Giving out information neither on exchangers or ICO teams doesnt really guarantee you that your informations is completely safe because we wont know on where those info's being stored up after such transaction.There still risk of leak out where it would still lead into possible illegal usage of those info.

[Irvinn]

Please share any recommendations as to how to make kyc( know your customers ) effective!! and probably; is it even needed?

First you need to find out on what legal basis the KYC check is carried out and which categories of people fall under this check. Of course, existing regulations, if any, should also state and for what purpose such an inspection is carried out.
As far as I understand, its main task is the prevention of money laundering and all other illegal actions that can be carried out using cryptocurrency. This check covers only investors, that is, people who buy a cryptocurrency, if an ICO is held, as well as persons who make any transactions when trading on the exchange.
I especially want to draw attention to the fact that KYC checks should not be carried out against participants of the ICO generosity campaign, since they are not investors.

[izanagi narukami]

Please share any recommendations as to how to make kyc( know your customers ) effective!! and probably; is it even needed?

Just make sure that you're giving your KYC  to some site or project that important for you.

So let say if you play dice on gambling site that require KYC to withdraw, maybe you can stay away if your law can track down your activity through them.
Personally, I will give KYC to the exchange because I'm usually convert btc into fiat as long as they are trustable !

[Theb]

For Legal Purposes .............................. Yes
For People trying to Abuse your Bounty ... Yes
For collecting KYC just to sell it to others...No

KYC is something most countries are trying to require now as it is there way to combat the people who is using ICOs to do criminal activities, it is also there way to give their own citizens protection from some potential scams if they try to invest in the cryptocurrency market. You also need KYC in order to avoid people abusing your bounty with their multiple account registrations, this will ensure you that the person will only receive what you are willing to give to just one person.

Now on how you can effectively ask for KYC, you should have a team or department that is meant for verifying that the documents your customers are sending are legit, KYC will only work if what they are giving you are not false data as some users tend to send fake documents in order to participate and abuse your ICO.

[sunsilk]

Kyc is very crucial in getting to know your customer but me i feel snapping with you holding the projects name is asking for too much, when you alrdy have a picture of you holding the ID card.

yes its needed now that projects are excluding investors from some countries like US and china.
 but a photo of us holding a projects name would really be too much, they could use it to make you appear like you are part of the team. that is going to be the most scary thing. the Id card adn a photo of you holding the ID i think is enough.

I complied to a KYC requirement of an exchange so I would increase my limits and they can verify that I'm a legit customer. Don't just send your pictures holding your ID's to a very unpopular site that you are investing.

But if the site you are sending and complying KYC is trusted and fair, I guess there's no problem with it. With projects, I don't comply with those requirements and won't join any of them. There are incidents that our identities are being sold and used for different activities that's why I no longer trust those projects.

I remember when i do make some investment with some good ICO's in the past where i do comply KYC which i know its really a risky decision but that thing do succeed and give out some good returns.
Giving out information neither on exchangers or ICO teams doesnt really guarantee you that your informations is completely safe because we wont know on where those info's being stored up after such transaction.There still risk of leak out where it would still lead into possible illegal usage of those info.

That's a legit fact that we can't be sure of it if our identities are being stored and secured on their database. One of their staff can even do something crazy that the management won't notice with our ID's.

We need to understand of putting our identities at risk specially if you are investing to those ICOs now. Most of them can't be trusted anymore due to the growth and high number of scammers who are using ICO scheme for their shady act.

Lastly, if you don't agree with their terms then simply don't agree and don't send your ID's.

[Kemarit]

Here, I dug a few threads about KYC. Its been a subject for quite some time so I'm sure that you can find interesting cons/pros.

Are You Afraid of KYC?
Why most ICOs ask for KYC?
Attention: KYC for Bounties
Is it safe to provide passport details for KYC?
Do you join ICOs that requires KYC?
KYC of bounty hunters

Bottom line, if you're not comfortable handling out your personal information, then by all means do not do it.

[roadwell890]

Please share any recommendations as to how to make kyc( know your customers ) effective!! and probably; is it even needed?

the majority factor using KYC is for the case of money / asset laundering to be more controlled, the obligation to validate user data on the exchange market or ICO is set to the user account, but it is better to still be subject to a value limit and nominal above 1 btc because below that nominal still considered feasible for middle to lower transactions.

For exchange markets and ICOs, they have been required fairly according to their fund allocation. However, for the smallest value / transaction, it should not be needed

[hulla]

Please share any recommendations as to how to make kyc( know your customers ) effective!! and probably; is it even needed?

I sincere think that KYC is needed; in other to reduce financial fraud and money laundering....thanks for the idea of KYC in my own humber opinion it has really help in monitoring the movement of financial...just that am in total support for the need for ICOs platforms to collect less data as possible but must be accurate and containing some key details incase of subsequent cases of fraud...more than a regulatory requirement, the KYC has become an essential component of the customer experience. The digitization of company / customer exchanges requires that customers be given an easy and fast accreditation or identification experience. At the same time, the reinforcement of identification rules forces the company to manage and control an increasing number of channels, making the customer journey more complex. Solving this equation is therefore strategic!
For the end customer, this procedural burden of collecting and processing identification documents can be perceived as a real challenge, which can lead to a reduction in satisfaction associated with the complexity and length of registration which could lead to abandonment.
For the company, this abandonment is catastrophic: the identification becomes a position of costs, consumer of human resources, in constant growth.
On the basis of this finding, the outsourcing of KYC to specialized providers deserves to be examined - but i think is ok!!

You make a good point about the KYC issue which I also support and believe it solve the issues of money laundering but to be honest KYC issues also make cryptonier to be vulnerable because of the issue of data linkage which could expose people to hacker, theft and fake id users.
Nevertheless, i have a bad feelings about the whole KYC things because the FBI nab some people involve in money laundering and illegal right before the implementation, why didn't they use the same process?

[posi]

Please share any recommendations as to how to make kyc( know your customers ) effective!! and probably; is it even needed?

Although, anything that have an advantages must have disadvantages but I think KYC is needed in the Crypto community because the cryptocurrency business is already flooded and only way to keep it on track is KYC. However, the US SEC still need to do something you preventing investors interest either by implementing a process to stop scam ICOs from operating.

[Harlot]

You make a good point about the KYC issue which I also support and believe it solve the issues of money laundering but to be honest KYC issues also make cryptonier to be vulnerable because of the issue of data linkage which could expose people to hacker, theft and fake id users.
Nevertheless, i have a bad feelings about the whole KYC things because the FBI nab some people involve in money laundering and illegal right before the implementation, why didn't they use the same process?

Well in order to solve that problem we must know what ICOs are backed up by the government and what ICOs are not. Some ICOs are really just here to gather some data in order to solve this information to other people, this ICOs are really not here to comply with the requirements of the government but to earn money from your data. Easiest to avoid this one is to participate on ICOs you know that the are locally allowed to sell because participating a pre-sale internationally without any good background is a big risk for your personal info.

[LeGaulois]

In Estonia, the citizens have a kind of Digital Identity, (working with a 2FA or a card with private keys) They can use it for everything needed for administration, banking, or whatever.
We could imagine similar, each citizen has an ID number and private keys and when a KYC verification is needed the citizen will just need to enter a code (keys or 2FA code)

[Theb]

In Estonia, the citizens have a kind of Digital Identity, (working with a 2FA or a card with private keys) They can use it for everything needed for administration, banking, or whatever.
We could imagine similar, each citizen has an ID number and private keys and when a KYC verification is needed the citizen will just need to enter a code (keys or 2FA code)

Will this system be applicable to international ICO sales? I think the ICO developers should be aware of this system in order for the Estonians to avoid the traditional way of providing information. This might probably be the most convenient way of providing KYC to ICO developers as it will work well for all the parties (investors, developers, and the government), but the problem I see with this system is data leakages. Can you imagine if this network of data being accessed by other people other than their government and the ICO developers? It would compromised a lot of personal information and it will probably land to the wrong people.

[Faeton]

Kyc is very crucial in getting to know your customer but me i feel snapping with you holding the projects name is asking for too much, when you alrdy have a picture of you holding the ID card.

Then you, as a bounty hunter, must both meet your clients - the ICO team and take the KYC verification from them. After all, the client is always the one who pays his money and therefore proves that his money is not "dirty." This is the point of checking KYC. Therefore, investors who invest their funds, as a general rule, are tested by KYC, in case some states are interested in a particular person and the origin of his funds.
Bounty hunters should have no relation to the KYC verification.

[buwaytress]

Of the "blockchain" projects mentioned, I'll say that Civic is the one most used in the business world, far as my experience goes. Been actually in a circumstance where I've had to use it once myself - failed to verify me. Couldn't also see what the difference was with any other KYC software, definitely no blockchain difference (except that it failed, and that was my first time failing a kyc software!).

[Ozero]

Please share any recommendations as to how to make kyc( know your customers ) effective!! and probably; is it even needed?

I know KYC uses it to ico's strictly and they use it so they do not double the tokens payment. and it is also good for the safety of ico participants because of their tokens secured.

Strange reasoning. The ICO team illegally uses a previously unspecified KYC check at the end of the ICO in order not to pay parts to the bounty hunters for the tokens they earned. This can be considered fraud by similar ICO teams. Moreover, the KYC check against bounty hunters, they generally apply illegally. Ask these ICO teams on the basis of what legal act they require to pass this test to bounty hunters and what exactly is written there so that it can be applied to bounty hunters. And everything will fall into place. They will not be able to justify their position with such a document. In the case of bounty hunters, KYC testing is a common practice.
Do you consider justified violation of our right to confidentiality (and in my country there is a law on the protection of confidential information and this situation is clearly a violation of this law) only in order to avoid the use of several accounts by one person? Do you think this really interests the ICO teams? For them, it is important that you write good messages and at the same time advertise their project. And whether you will be writing in one account, or will you keep up with it in several, it is absolutely indifferent for them. What is the conclusion?