Topic: KYC challenges (Read 1037 times)

Now in all new project, KYC is required it's mean that where you are signing up you realize that if KYC is must then it secure

This can be a good reason why KYC is being implemented by many exchanges, to easily identify the hackers but yeah they don't better on this one because this is their profession. Some good exchanges are still not requiring KYC just like Binance that can be a place where scammers usually put money. But if its too big and obvious, exchanges will lock their address just like on the recent hacking incident that the exchange Binance was involve.

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Do you think that hackers are not smart enough and just would deposit the hack coins directly to an exchange? Of course, they will try to obscure and hide their tracks from investigators. And hackers would just go and deposit it to a exchange wherein there is no KYC needed get out and then just rinse and repeat. It would be very difficult to track them out or they could outsmart them by sending fake KYC.

Personal information for bounty rewards, risking important details for how much? it's hard to trust someone over the net, you don't know where the team will use those information, be realistic and always go at the safe side, in any case research and study every possibilities before you submit anything to the people you don't even know personally.

Providing KYC details for the bounty campaigns is not good actually.

When you want to participate in the bounty campaign please read the norms for the payments as well as about the ICO idea before you plan to join with them.
Mosly people do not take time to see all these things while joining the bounties.

You just follow the rules on how they want their customers to do KYC for them if they want a passport and a selfie with you holding your passport then you just have to give it to them, I think it is one of the effective ways to do KYC, some people are cheating the KYC by submitting other people's passport, and about your questions is it even needed, in my opinion, we don't need that if we are in their bounty campaign, but not if we are their investor.

It's necessary that we follow the KYC.
It's not really hard, it's just a basic requirement every time you invest and even open a bank account.
The law will be implemented, otherwise you will not be able to avail on the financial services.

In crypto, I have complied a lot of KYC requirement especially in bounty, but only those that I believe are legit and can be trusted.

Depends on the laws and regulations in your territory. In many of the countries, KYC is mandatory if you are dealing with currency or financial assets. The level of KYC required can vary. In some nations, just a phone number may be enough. In some others, passport details and address proof may be required.

If you ask me it's not recommended and would not even recommend to any project, unless they can prove that you are going to set up a company that is compliant to any government rules and guidelines, but if you are  working on a company, don't do it, unless you are 100% sure that you are working in a real project.

some users have certain criteria, they may not be a problem for telephone verification, or an id card only.
but for hold id and a self photo it is a form of dismantling one's identity? I also won't do that, even though they have large rerward

I wont make any complaint on KYC process as long I do know the team/institution/company that do requires it out is legitimate and non-shady but if those things aren't clear to me then
sending out personal informations would really be a big hindrance to do so.
Verification is needed due to legal process but this had been abused by some just to collect data or documentations into its users.

Are you the one asking or are you the one who is going to submit KYC to the site, passport and driver's license is enough you can do or ask selfie, this is how they ask or do a selfie and I think that's enough to verify one's account.     

It is up to the company that asks for KYC, but if you are running a company and you want your customers to do KYC, a single pic with him holding his legal ID be it passport or driver license is sufficient enough it is needed for compliant but I'm not going to do this for any ICO.
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We have the same sentiment regarding this issue mate . I am into KYC if it is only implemented for acquiring long term services of a particular company. The best example I could present is when I sign up to coins.ph (the digital wallet I used right now). I have no hesitations to tell them about my credentials (including my full name, address, birthday, government issued ID and my picture) because first and foremost, they are a trustworthy company and second, I understand that they need those parameters in order to reach out their customers when complaints occurred and as well as protecting their company against dirty transactions. But saying that it will be implemented for every ICO we join? Nah, I don't think it would be necessary at all because it absolutely makes as feel uncomfortable knowing the fact that our personal infos are handled by a team in which credibility still remains a question.

It is up to the company that asks for KYC, but if you are running a company and you want your customers to do KYC, a single pic with him holding his legal ID be it passport or driver license is sufficient enough it is needed for compliant but I'm not going to do this for any ICO.

From the point of view of stock exchanges and ICO teams, conducting a KYC check cannot be effective at all. KYC checks should be conducted to prevent the laundering of dirty money and combat the financing of terrorism. Therefore, only law enforcement agencies of states that used the information collected about them about the clients of the stock exchanges and the ICO can assess the effectiveness of such verification. I think that there are not so many cases in the world when the collected information made it possible for someone to expose in the laundering of dirty money or the financing of terrorists.

I completely agree with your opinion, although it seems to me that you can not say that KYC is illegal in relation to bounty hunters. Companies are not obliged to collect data in their case because the purpose of introducing KYC was definitely different (as it has been said many times) but I am afraid that there is no law that prohibits the collection of personal data. So it's always your decision whether you will want to take part in bounty and pass your personal data or not.

Personally, I am an opponent of such a solution and I try to protect my data as much as possible - that is why I would not risk losing my sensitive data for a few miserable dollars.

I suggest people do a thorough background check with any companies requesting KYC documentation because potentially this can be misused or sold into the black market. When possible, it's best to avoid KYC, but to the extent that it is needed for legal compliance and to trade cryptocurrencies, people should be very selective.

Why would they follow the government ? You already mention that cryptos are anonymous or decentralized , in short its independent .  no government can dictate it .  kyc does not makes no sense to me   .   kyc is only trashing the real purpose of cryptos  .  i dont do kyc and other users should not also do it   .  if no one will do kyc, no bounties/airdrops/ico's will also require it   .   trust me  .

I do not know what you mean under the word "effect". Isn't it can be counted as effectively use of KYC instead of just let people to join incognito? The system has shown itself already and due to positive results now it seems like everyone wish to use it. That's what I call effective use of something.

KYC do have advantage and disadvantage side but we are here on crypto and we know that we are aiming or do give out importance
about anonymity and giving out any personal docs is fully contrary on what we do like here on crypto space but as part of reality we are facing
these services and institutions would really need to comply on whats being asked by the government.

Bounty hunters check KYC is not only not necessary, it is illegal for them. We should not undergo any KYC checks. Such verification should be carried out only with the aim of preventing the laundering of dirty money and combating the financing of terrorism. It should not be pursued with any other, outwardly noble goals, since its conduct violates the human right to the confidentiality of the person. The KYC check is carried out by a small group of people who have temporarily united to conduct an ICO. Where and for how long will they keep our confidential data? They do not bear any responsibility for its use for mercenary purposes. In most cases, such information is not used at all. She is going to in the event that the law enforcement authorities of a country subsequently do not become interested in her and do not make the corresponding request. In fact, for the ICO team this is a dead weight and for us this represents a direct danger of its use for illegal purposes.

It is rightly written here that the KYC check should be conducted to prevent cases of money laundering and to combat the financing of terrorism. Therefore, a KYC check should be carried out only for large investors. With regard to bounty hunters, such verification is illegal. ICO teams are now overly abused by such verification, sometimes putting us in an impossible position and forcing us to provide them with our confidential data and copies of documents when such a KYC verification is announced at the end of the ICO. This can be interpreted as fraud by ICO teams. KYC verification should not be carried away, it violates the rights of people to the confidentiality of the individual and this should not be forgotten. The activity of the ICO needs to be regulated by the state.

On social media you can give any pic you want so there is no necessary it to be yours and mostly we don't upload our passport or driving license pic on the social media,Did you?
Photos will be okay to share but any identity give by government will get us in trouble when if they abuse it.

The difference of having social media personal information is that you can have the option to fake it out compared to the things being asked out by companies which your real time would match up on the informations seen on your id or any documentation which it is entirely different thing when it comes to possible risk of identity fraud once those info would leak out.

Let's just accept the fact that nowadays KYC/AML is very needed for companies to avoid possible abuse. When you are making social media that is a sort of sharing your identity so why you afraid of it unless if you find out that the site was obviously fake or scam. Then in that way your responsibility to do research before submitting your personal data. My point here is choosing a legit company were to share your information and I think that is not critical if only photos and ID.

Don't say it is nothing wrong when someone has all our details,do you know something data of people are the most valuable thing in the world and most of the social media sites are selling our personal data to the corporates and making millions of dollars from it.

You can also find the database of KYC documents on the darkweb so we need to be careful with our documets when we are submitting KYC.

i've heard of people selling their kyc data during and after ico's but have no articles or news stating that.
anyway you can point me to a few so i can bring them up to friends while discussing the cryptocurrency realm ?

If someone has a real problem with KYC then there is a chance they are doing something that is wrong or they are hiding.
There isnt much that can be done with KYC so what if someone has your ID?
People are paranoid about KYC but the truth is it is not a big deal to hand over some paperwork if you arent hiding the truth.

I feel you bro . kyc is really a though thing and this is the hottest issue that we are facing nowadays  .  bounty and airdrops should be excluded in kyc's because people dont invest a money on these kind of activities  .   but it is okay if kyc can be included on wallets and exchanges even if the deposit or withdrawal amount isnt really large enough .  that is to avoid fruadsters and other illegal activities   . kyc is for our own good and it is really beneficial  if done properly  .

Should really be on this way but all of them do require it generally from big investors to bounty hunters which i can see it meaningless specially for bounters.Why would need such verification if

they are just part of marketing area.Just to tell my recent registration on a unpopular exchange, even withdrawing $50 do already required you to get verified.

KYC checks should be conducted only for traders with large trading volumes and large investors in ICO projects. For other categories of people it is meaningless. With respect to bounty hunters, KYC checking is generally illegal. It should be used only for the purpose for which it was created - the prevention of money laundering. In any case, it cannot be used on this forum to combat the presence of multiple accounts for some users. Violation of our right to privacy cannot be justified by this.
 In general, KYC verification - this should be a problem of state bodies.

Its hard to trust anyone, and even if its the government or what since they can sell our details on a black market. KYC should be more regulated so we are safe from this kind of activities. ICO’s should not ask for any KYC or else only few investors will participats since they want more to be safe.

Yes it is. KYC is useful especially in controlling and filtering the transaction even it can't be denied that personal information of investors leak to other parties. But still, the function is amazing, it can help us to monitor the financial movement, knowing the risks, and giving experience to the customers in terms of reinforcement. Let's hope and see how it moves to another level.

The KYC check is designed to prevent the laundering of dirty money. Are you worried about good performance in this regard? Then you need to go to law enforcement. This is their direct task.
In ICO activities, KYC validation can be applied to very large investors. For other categories, such a check is meaningless, and for bounty hunters it is also illegal.

Identification...
Photos of selfie with ID and a blank sheet of paper with the date-month and the project hashtag.

I don't mind to giving my KYC to legal instutions especially if those institutions supported by government but i will think twice giving my KYC to particular projects such as ICO's because they cannot guarantee will abusing our data and i have seen there was people who regretting their decissions when submit their KYC because their data were abusing by irresponsible people and i don't want it happen to me

That’s our main concern in regards to KYC requirements on how they will secure our data’s and assurance that they will not use on their own benefits,nor taking advantage since the KYC is usable for other platforms interest,for several times i had been asked by kyc but i have sended i guess only thrice for my own personal reasons

As much as i tried to understand the Company needs for our KYC is the more i am trying to make sure of my details,unless theres a real and legit needs of this then i will send mine to them

Now there is a rather strange situation. Working with a cryptocurrency on the idea of ​​its creators should have anonymity and confidentiality for its user. However, when making payments in cash and other types of means of payment, we do not provide as much information about ourselves as in payments in cryptocurrency. Therefore, the practice of checking KYC must be fought with all possible and affordable means. Those who support KYC verification themselves consciously or unconsciously struggle with the underlying principles in cryptocurrency - its anonymity and confidentiality.

Actually, most professional cheat people are afraid of KYC because it will make it difficult for those who cheat. Also, I was scared because I heard many cases of information exposure and bad influence on society

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


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.

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.

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.

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.

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.

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.

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


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.

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

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.

Thank you sir..

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.

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.

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?

Thanks to everyone that has contributed!

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!).

Wow!....great idea sir!

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.

Ok...thankx

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.

Thank you for the great contributions!

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)

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.

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.

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?

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

Thank you sir! You are very much comfortable with kyc then!

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

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.

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.

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.

Lets see how it plays out in the future

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 !

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.

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.

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.

So true sir!!....i agree with u sir!

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.

Thank u sir!!....i think kyc is a great thing!! So ICOs platforms should employ new technologies and techniques to secure data as much as possible!!!

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!!

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

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.

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