KYC is it mandatory for security tokens ? - page 2.

magneto

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Quote from: HappyZeref on June 06, 2019, 03:06:43 AM

I tried to register in Blueshare.io and they re-routed me to another platform called Altcoinomy.

They state they are financial institution and compliant with Swiss laws ,etc.

Anyway is there always the need to pass KYC in order to invest in an STO?

If they are fully compliant and they are literally calling their own token a security, then yes, most likely they are required by the relevant regulations to conduct verification on their customers or investors.

It also depends on who and which regions they are offering their tokens to, if they bar people from the U.S. or other sensitive areas where tokens are treated as "securities" and as such regulated by the SEC and other bodies from participating, then there could be a chance that they can legally offer their tokens without KYC.

At the end of the day, it's up to their discretion. You as an investor has really no control. If you aren't comfortable with providing your info, don't.

squatter

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Quote from: aioc on June 08, 2019, 07:28:36 PM

If they are compliant and they have proof that they really are, why not, I always say that if the company can show that they are compliant and they are fully registered company, they can make their users comfortable and make them think that their investments are safe.

Get ready to have your identity stolen. Undecided

A company being registered and compliant with all data protection laws isn't enough to guarantee the safety of your documents. Database compromises are happening everyday at major companies. The more companies you volunteer your information, documents and selfies to, the more likely your data will be hacked and sold on the dark web.

You should always consider that risk and weigh it against the potential benefit. Is this STO really that promising -- will the profits be large enough to justify this risk? Do you really want to hand your documents over to company named "Altcoinomy?" Because yes, KYC will typically be mandatory with security tokens. They are subject to various securities laws.

aioc

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Quote from: HappyZeref on June 06, 2019, 03:06:43 AM

I tried to register in Blueshare.io and they re-routed me to another platform called Altcoinomy.

They state they are financial institution and compliant with Swiss laws ,etc.

Anyway is there always the need to pass KYC in order to invest in an STO?

If they are compliant and they have proof that they really are, why not, I always say that if the company can show that they are compliant and they are fully registered company, they can make their users comfortable and make them think that their investments are safe.

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Quote from: HappyZeref on June 06, 2019, 03:06:43 AM

I tried to register in Blueshare.io and they re-routed me to another platform called Altcoinomy.

They state they are financial institution and compliant with Swiss laws ,etc.

Anyway is there always the need to pass KYC in order to invest in an STO?

Keep the KYC secondary in this matter, first you need to check the legitimacy of the site you reffered. You need to clarify the problems what you faced in that site and confirm that trustworthy to use.

Then KYC details can shared the site which is legit and if you are safe only you need to share that. In crypto industry, you do not need to share the personal details for unwanted reasons.

dothebeats

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For tokens, no, I wouldn't suggest anyone giving out their KYC documents in exchange for a few dollars and hopes that one day, the coin/token will amount to something. Sure, one company/team can always say that they are compliant to AML/KYC regulations, but nowadays anyone can claim that, and by doing exactly that they are having a free pass on anybody's KYC documents, all they need to do is ask and they'll get it.

Quote from: CryptoEnthusiasts on June 06, 2019, 04:37:33 AM

You have to do some DD on the KYC provider, but keep in mind that in one way or another you have to give your ID in order to buy securities.

Would you trust some clerk in an investment firm office with your ID information ? It has the same risk factor.

Exactly this. Not that I have something against rank-and-file workers but handling them sensitive information for the most part is just scary.

Theb

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STOs are much more regulated compared to ICOs as compared to them they more act as stocks or shares of a company that is why KYC is more heavily enforced to them. STOs are more likely to be offered by companies which has already been allowed by their SEC to do so that is why anything regulated or somehow involve by SEC this will guarantee that they will somehow have a KYC process as a requirement. So the only thing for you to do now is to knkw if these blueshare.io is running a legal STO.

Kemarit

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I'm not familiar with STO, but the thing for me though, if I'm not comfortable giving out of personally info then I won't do it, simply as that. I mean, we know that sooner or later, every exchanges will require us to comply for AML/KYC compliance, but I will still wait for that day and weight my options, just saying. So it's really up to you if you wanted to take that risk or not.

CryptoEnthusiasts

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You have to do some DD on the KYC provider, but keep in mind that in one way or another you have to give your ID in order to buy securities.

Would you trust some clerk in an investment firm office with your ID information ? It has the same risk factor.

HappyZeref

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Yeah, but should i entrust my Private information to a another website which has redirected me to?

CryptoEnthusiasts

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KYC is absolutely mandatory and required by law for all sorts of securities around the world.

A company is required by law to always know all of its shareholders.

This of course includes security tokens.

HappyZeref

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I tried to register in Blueshare.io and they re-routed me to another platform called Altcoinomy.

They state they are financial institution and compliant with Swiss laws ,etc.

Anyway is there always the need to pass KYC in order to invest in an STO?

Topic: KYC is it mandatory for security tokens ? - page 2. (Read 585 times)