Topic: AML/KYC Explained - page 8. (Read 473691 times)

if you think about it most affiliate programs out there require AML/KYC info in order to sign up and get paid. Getting paid on a referral basis is equally important to monitor. There should be levels of flexibility in the verification process to make sure not to exclude those that may have certain circumstances that don't allow them to provide the information requested.

When the limitless possibilities afforded by blockchain technology was discovered by people, many entrepreneurs and developers set about to use this revolutionary technology to create platforms that wold solve real world problems. However, in a system that relies on personal data, the problems of data security arise. And this introduces the need for compliances laid down by relevant authorities.

KYC/AML Compliances to Ensure ‘A Clean Platform’

The most basic compliance that is required by any blockchain-powered enterprise that distributes tokens is the KYC/AML. KYC, also better known as “Know Your Customer” has gained importance in recent times in the financial sector owing to the large number of fraud accounts that people create in a bid to launder money or for other illegal purposes. Today, even blockchain enterprises need to perform stringent KYC procedures that establishes, beyond any doubt, the identity and authenticity of an individual. AML compliances are also necessary to establish that all measures have been taken to discourage money laundering and the enterprise follows all guidelines laid down by governmental authorities to stop cryptocurrencies from being used by their customers to launder money or for illegal activities, like financing of terrorist activities (CFT — countering the financing of terrorism).

You can read more about KYC/AML Compliances here... https://medium.com/@coinnup/the-importance-of-compliance-in-ensuring-data-security-in-blockchain-powered-enterprises-4f4d10488b72

As for me, almost all ico that require KYC for bounty participants are scam. In my experience these ico either try to reduce payments or do not pay at all.

although,  i am not against KYC/AML because to some extent it prevent money laundering and terrorism. however, the risk of the vital information supplied being stolen is another thing. more so, it is like a clog for the people from 3rd world country to access crypto market. i am of the view that limited amount be set so as to afford the small scale to access the market. 

Perhaps the owners of the projects are just hedging their bets. Recently, many countries have adopted and developed laws aimed at the legalization and regulation of cryptocurrency.

nice piece of write up, thanks

I actually like the idea of KYC/AML to have the chance to filter suspicious contributors for instance. However, I do not see the system fully protected either, and the possibility of fraud with personal data is also a big concern.

I have the same question, because, if i help to spread information about project and i am not investor, why should i go through KYC? And the answer, i think, that managers have chance not to pay you, because sometimes you just can't do KYC.

We knew that KYC/AML will be one of the main reasons why the regulators and government will ban or accept crypto currencies

The guide is very an easyt-to-understand one. I saw KYC and AML terms in white papers and then I made google search about them. But the results were not simple. Your explanation is nicely done thank you.

OptiToken almost done with ico, who got moon tickets

Sometimes people do misunderstand what kyc mean and they use to run from project when they see kyc. However, the meaning know your customers that is the team we know where the participate are from, I mean the participate in both the ICO and Bounty.   All, this information help a lot .

While already very overcomplicated, these systems don't seem to me like a very secure way to identify investors. There are still a dozen ways that some devious people can find loopholes in the system, and all the while people who are truly legit suffer constantly and have their credentials under scrutiny. Some countries and banks are totally out of luck, even though these people have no other options.
This situation really reminds me of the DRM (Digital Rights Management) implementation in videogames. For those who don't know, DRM is implemented to combat piracy, but instead it just makes it a little harder and takes a little more time for pirates to steal games. At the same time DRM makes many computers of legit users underperform or don't run the games altogether, which makes prospective buyers avoid games with DRM implemented. Don't you see the irony?

thanks 

The kyc means know your costumers how kyc is very good if they can really work on the process of getting people verify in time. Also, many people now complaint great about lost of their reward in this process of kyc not get verify. Am little advice to them is that they should just work on the kyc process and things will get better on it.

a very useful article for beginners

KYC/AML does protect from fraud but mostly protects the companies who follow them from liability though some actually do use it to protect their clients. SOME...

In some sites, KYC is abusive. I mean websites without USD can avoid this method because we have already proove our ID when we have bougth Bitcoin before.

what is KYC. Who  required KYC, how it can be done.
Very well explained in this post. Thanks for sharing this information