KYC challenges - page 3. | Bitcointalksearch.org

joniboini

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Quote from: goaldigger on January 26, 2019, 06:47:50 AM

People doesnt want their personal information to be given thats why they choose crypto as an investment.

No, most of them want to get rick quickly and that's why they choose ICO.

Quote from: goaldigger on January 26, 2019, 06:47:50 AM

But if you look to the other side, you will see that within this vast world of internet, giving or asking for some of your personal informations are necessary for your security. Its not always negative, sometimes its way better.

That depends on who ask your information. I don't believe anyone who never told me who are they first before giving my personal details. I made a lot of mistakes previously by giving personal details to anonymous exchange which eventually went down. I don't know what will they do with my data in the end, but I keep praying it won't be used for illegal activities. I'd avoid KYC at any cost, and try to use an alternative option if it's available.

I really hope we can solve this option by making our "KYC" as signature verification, just like Bitcoin/PGP message. That way I only need to send my KYC hash or message which can be verified by anyone in the world. Governments around the world should work together to provide a global hash identity ledger.

goaldigger

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People doesnt want their personal information to be given thats why they choose crypto as an investment. But if you look to the other side, you will see that within this vast world of internet, giving or asking for some of your personal informations are necessary for your security. Its not always negative, sometimes its way better.

Kemarit

legendary

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Talking about KYC, Binance has taken one step further (https://cointelegraph.com/news/major-crypto-exchange-binance-to-use-refinitiv-kyc-solution-in-internal-workflow).

So they're tapping a third party services REFINITIV to help them automate the process. So I guess processing or approval time will just take less days now before you know you're approved or not. I'm not really sure though it video chat is included in verification. What this means is that we have to accept the fact that crypto is no longer the (psuedo) anonymous. We are all subject to KYC just like what banks is doing to their clients.

marcbitcoins

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Quote from: ekomic on October 24, 2018, 06:50:41 AM

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

If possible that aside from submitting IDs and other documents pictures, the legit ICO facilitators should apply for a short personal chat video to ensure that the certain participant is really exist. With the advancement of technology today, we could easily edited a certain documents so that it will looks like originally ours but with the help of online chat video then the legality of the owners could be determined.

magneto

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Quote from: ekomic on October 24, 2018, 06:50:41 AM

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

Just to touch on the topic once more: I think that as a business, you should try to minimise or at least make the KYC process as easy for the customer as possible, and only if you absolutely need their information and/or required by law to collect them.

The thing is that a lot of your customers will get discouraged from using your service if you're over the top about your KYC procedures. And that's obviously bad for an exchange, or any other crypto business.

Of course, what is required by law is required by law and you have to obey that. But make sure to protect their privacy, don't abuse know your customer as a means of threatening people, or otherwise you risk your business's reputation being ruined. Check with the authorities what is needed, whether source of funds are also needed (aml), and if you're not experienced I'd probably go with a third party KYC provider.

saaux

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Quote from: ekomic on October 24, 2018, 06:50:41 AM

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.

Kemarit

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Quote from: Vektrum on November 13, 2018, 01:19:49 PM

Quote from: ekomic on October 24, 2018, 06:50:41 AM

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

I do not see any point in conducting a KYC audit. In order for the ICO team to have no further complaints from the US and Chinese authorities, I think it is enough to notify investors about this and that investors confirm by pressing the corresponding virtual button that they are not citizens of the USA and China.

But they can even bypass this by using VPN or even TOR to hide their IP addresses.

Quote from: Vektrum on November 13, 2018, 01:19:49 PM

If we are talking about the prevention of money laundering, the collection of confidential information cannot be entrusted to temporary teams that do not pass a full-fledged check. In addition, this database is practically not used in any way and there is no point in it, only there is a very great danger of using this data in the future for illegal purposes.
ICO generosity campaigners should not be tested by KYC at all, as they are not investors and cannot launder dirty money.

The problem with ICO though is the way they enforce KYC. Most of the times its on the actual distribution itself that's why lots of bounty hunters are complaining. Initially they're setup that they don't require a full KYC but at the end of the sale, suddenly they inform kYC is needed. So obviously, investors and bouny hunters will make a lot of noise. And will start name callings towards that ICO. Not good for the image of the project.

klarki

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Quote from: ekomic on October 24, 2018, 06:50:41 AM

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

What are your goals? I think it is a very important point.

Vektrum

member

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Merit: 14

Quote from: ekomic on October 24, 2018, 06:50:41 AM

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

I do not see any point in conducting a KYC audit. In order for the ICO team to have no further complaints from the US and Chinese authorities, I think it is enough to notify investors about this and that investors confirm by pressing the corresponding virtual button that they are not citizens of the USA and China.
If we are talking about the prevention of money laundering, the collection of confidential information cannot be entrusted to temporary teams that do not pass a full-fledged check. In addition, this database is practically not used in any way and there is no point in it, only there is a very great danger of using this data in the future for illegal purposes.
ICO generosity campaigners should not be tested by KYC at all, as they are not investors and cannot launder dirty money.

ekomic

newbie

Activity: 63

Merit: 0

Quote from: Kemarit on October 26, 2018, 08:23:40 AM

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.

Thank you sir..

milewilda

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Quote from: Ozero on October 29, 2018, 04:14:02 PM

Quote from: saaux on October 27, 2018, 01:09:51 PM

Quote from: ekomic on October 24, 2018, 06:50:41 AM

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?

KYC isnt a common practice but rather these are things being required for some projects that do abide on their countries regulation-but fraud projects do take the advantage
on such procedure just to accumulate personal informations on their investors together with bounty hunters.Im even still in questioned about that issue where bounty participants being
asked about KYC which they have nothing to do with that thing since they arent investors of the said project.Even into legit ones, im still not confident on giving out easily on my personal
info and this thing will just matter on users discretion towards KYC possible problems ahead.

erikoy

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Quote from: ekomic on October 25, 2018, 11:51:27 AM

What's your general take then!!..you support kyc or not?
Any effective ways you can recommend to making kyc procedures effective??

I have this kind of thought also thinking on what really OP wants to specify about KYC. Anyway, KYC is appropriate to local excahnges and this is effective to address abusive form of use of cryptocurrency. This is the only way we could promote cryptocurrency without the hesitant of some accusations about some.issues in the likes of money laundering and more.

Ozero

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Quote from: saaux on October 27, 2018, 01:09:51 PM

Quote from: ekomic on October 24, 2018, 06:50:41 AM

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?

ekomic

newbie

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Thanks to everyone that has contributed!

buwaytress

legendary

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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!).

ekomic

newbie

Activity: 63

Merit: 0

Quote from: Theb on October 25, 2018, 01:10:57 PM

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.

Wow!....great idea sir!

Faeton

member

Activity: 308

Merit: 11

Quote from: Amakenzy on October 24, 2018, 07:35:14 AM

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.

ekomic

newbie

Activity: 63

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Quote from: sunsilk on October 26, 2018, 01:03:02 AM

Quote from: carlfebz2 on October 25, 2018, 11:43:01 AM

Quote from: sunsilk on October 25, 2018, 04:22:00 AM

Quote from: electronicash on October 25, 2018, 04:06:21 AM

Quote from: Amakenzy on October 24, 2018, 07:35:14 AM

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.

Ok...thankx

Theb

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Quote from: LeGaulois on October 28, 2018, 01:21:36 PM

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.

ekomic

newbie

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Quote from: Irvinn on October 25, 2018, 12:02:05 PM

Quote from: ekomic on October 24, 2018, 06:50:41 AM

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.

Thank you for the great contributions!

Topic: KYC challenges - page 3. (Read 971 times)