Topic: Why KYC is important? (Read 559 times)
The KYC is important because you must know who you dealing are.This process is implemented by many industries even outside of the crypto space. This allows organisations to know the people they are dealing with, allowing them to filter out malicious individuals.This is now standard practice for any legitimate ICO looking to raise funds. These processes not only benefit the project implementing them ,but also help to protect those with interests within the project.These processes are designed to filter out those with no real interest in the project’s success. They are simply interested in cleaning their dirty money by pumping and dumping in ICOs. It’s an easy way for criminals to launder their money, making it hard to trace its true origins.
Of course it would gladly help the developers on whoever they are giving their coins to. It's for security purposes.
A lot of ICOs are facing a problem from their investors due to the KYC. Voluntarily complying with KYC regulations provides many advantages to the Offeror and its investors, even if they are not currently explicitly mandated to enact such a process.
1. Cryptocurrency exchanges are beginning to exclude cryptocurrencies that did not properly implement KYC processes. Thus, not running such checks poses a long-term risk to a project. The Financial Times reported that New York Stock Exchange-backed GDAX says it “plans to list only a fraction of the hundreds of new digital coins that have been invented this year”
2. Voluntary KYC compliance may help ICOs reach a larger global audience and expand the number of jurisdictions in which they can take place. Such compliance allows easier reach to investors in America, Britain, Canada and elsewhere.
There are other restrictions also imposed from SECs and banks which greatly limit the activity of the company in the future.
We know not everyone is happy about KYC and some people don’t agree with it ideologically, especially when it comes to cryptocurrencies, where transfers are anonymous, or at least pseudo-anonymous.
However, for the adoption to seamlessly occur, the company holding the ICO needs to have KYC, which otherwise will create issues for the company in the long run, which is bad for both the investors and the holder of the company.
Enkidu has it's pre-sale going on right now. The minimum viable product has been developed before the pre-sale.
Join our Telegram group for more information: https://t.me/enkiduofficial
Join our token sale here: https://tokensale.enkidu.io
**edit: KYC is not done by a company to know where their money comes from. To be honest, a company rolling out its ICO cares about the cash inflow and not about their identity. It is a means of due diligence so that they are not prosecuted by their country of operation.
1. Cryptocurrency exchanges are beginning to exclude cryptocurrencies that did not properly implement KYC processes. Thus, not running such checks poses a long-term risk to a project. The Financial Times reported that New York Stock Exchange-backed GDAX says it “plans to list only a fraction of the hundreds of new digital coins that have been invented this year”
2. Voluntary KYC compliance may help ICOs reach a larger global audience and expand the number of jurisdictions in which they can take place. Such compliance allows easier reach to investors in America, Britain, Canada and elsewhere.
There are other restrictions also imposed from SECs and banks which greatly limit the activity of the company in the future.
We know not everyone is happy about KYC and some people don’t agree with it ideologically, especially when it comes to cryptocurrencies, where transfers are anonymous, or at least pseudo-anonymous.
However, for the adoption to seamlessly occur, the company holding the ICO needs to have KYC, which otherwise will create issues for the company in the long run, which is bad for both the investors and the holder of the company.
Enkidu has it's pre-sale going on right now. The minimum viable product has been developed before the pre-sale.
Join our Telegram group for more information: https://t.me/enkiduofficial
Join our token sale here: https://tokensale.enkidu.io
**edit: KYC is not done by a company to know where their money comes from. To be honest, a company rolling out its ICO cares about the cash inflow and not about their identity. It is a means of due diligence so that they are not prosecuted by their country of operation.
KYC is obvious for projects that need to be legal and formal, but when it comes to looking outside we have not identified the real damage, not determined information, the use of KYC is still very difficult. towel for the players. If a third organization confirms that good projects are under control, I think this will be a positive development.
I think its ceated to prevent investing big money from one investor. To control this he making identity their clients
For me they used KYC to avoid multi account and eliminate spammer.They decide it because for them this is the best way to make them more relevant by giving tokens to thae only one person. 
I read somewhere that the KYC is a requirement of the top cryptoexchanges
A lot of ICOs are facing a problem from their investors due to the KYC. Voluntarily complying with KYC regulations provides many advantages to the Offeror and its investors, even if they are not currently explicitly mandated to enact such a process.
1. Cryptocurrency exchanges are beginning to exclude cryptocurrencies that did not properly implement KYC processes. Thus, not running such checks poses a long-term risk to a project. The Financial Times reported that New York Stock Exchange-backed GDAX says it “plans to list only a fraction of the hundreds of new digital coins that have been invented this year”
2. Voluntary KYC compliance may help ICOs reach a larger global audience and expand the number of jurisdictions in which they can take place. Such compliance allows easier reach to investors in America, Britain, Canada and elsewhere.
There are other restrictions also imposed from SECs and banks which greatly limit the activity of the company in the future.
We know not everyone is happy about KYC and some people don’t agree with it ideologically, especially when it comes to cryptocurrencies, where transfers are anonymous, or at least pseudo-anonymous.
However, for the adoption to seamlessly occur, the company holding the ICO needs to have KYC, which otherwise will create issues for the company in the long run, which is bad for both the investors and the holder of the company.
Enkidu has it's pre-sale going on right now. The minimum viable product has been developed before the pre-sale.
Join our Telegram group for more information: https://t.me/enkiduofficial
Join our token sale here: https://tokensale.enkidu.io
**edit: KYC is not done by a company to know where their money comes from. To be honest, a company rolling out its ICO cares about the cash inflow and not about their identity. It is a means of due diligence so that they are not prosecuted by their country of operation.
1. Cryptocurrency exchanges are beginning to exclude cryptocurrencies that did not properly implement KYC processes. Thus, not running such checks poses a long-term risk to a project. The Financial Times reported that New York Stock Exchange-backed GDAX says it “plans to list only a fraction of the hundreds of new digital coins that have been invented this year”
2. Voluntary KYC compliance may help ICOs reach a larger global audience and expand the number of jurisdictions in which they can take place. Such compliance allows easier reach to investors in America, Britain, Canada and elsewhere.
There are other restrictions also imposed from SECs and banks which greatly limit the activity of the company in the future.
We know not everyone is happy about KYC and some people don’t agree with it ideologically, especially when it comes to cryptocurrencies, where transfers are anonymous, or at least pseudo-anonymous.
However, for the adoption to seamlessly occur, the company holding the ICO needs to have KYC, which otherwise will create issues for the company in the long run, which is bad for both the investors and the holder of the company.
Enkidu has it's pre-sale going on right now. The minimum viable product has been developed before the pre-sale.
Join our Telegram group for more information: https://t.me/enkiduofficial
Join our token sale here: https://tokensale.enkidu.io
**edit: KYC is not done by a company to know where their money comes from. To be honest, a company rolling out its ICO cares about the cash inflow and not about their identity. It is a means of due diligence so that they are not prosecuted by their country of operation.
it is necessary to protect themselves from the regulators. As now the regulations are not set for ICOs yet, they need to lay it out themselves and then when the regulation comes, hope it was enough
I do not think KYC important. I do not support it. And not when I'm not going to participate in the bounty companies KYC will require from their employees.
Based on the above provisions, it is understood that through the implementation of the principle of knowing the customer, it is hoped that the bank can identify suspicious transactions in the beginning to mitigate various risks such as operational risk, legal risk, concentration risk, and reputational risk.
It is because in order to know and identify different information of your customer and for your customer. Also, it is to prevent criminals or other harmful entities to join or to partake if they have any bad plots. Also to prevent money laundering.
That's so it will important the KYC to the project to those who want to invest in the project. Actually it can easily avoid to the people that have bad intention in the project. So we cannot expect on that on why this KYC is so important on the project.
Thanks for the explanation (and the shilling lol)
I still hope for a day where I can have a KYC service where I can use it for any ICO, instead of having to re do it every single time!
Its a huge waste of time if you think about and also not secure to provide data using google forms and such
Yeah. It is very tiring for investors to go through the whole process each time. I still hope for a day where I can have a KYC service where I can use it for any ICO, instead of having to re do it every single time!
Its a huge waste of time if you think about and also not secure to provide data using google forms and such
Thanks for the explanation (and the shilling lol)
I still hope for a day where I can have a KYC service where I can use it for any ICO, instead of having to re do it every single time!
Its a huge waste of time if you think about and also not secure to provide data using google forms and such
I still hope for a day where I can have a KYC service where I can use it for any ICO, instead of having to re do it every single time!
Its a huge waste of time if you think about and also not secure to provide data using google forms and such
Now more and more companies are demanding KYC when investing in their project, and this is really a painful topic for investors. But I do not think that all data is collected for the use of our information or the transfer of this information to some services. Probably this is a forced measure for the project, to protect itself ...
It is because in order to know and identify different information of your customer and for your customer. Also, it is to prevent criminals or other harmful entities to join or to partake if they have any bad plots. Also to prevent money laundering.
That's so it will important the KYC to the project to those who want to invest in the project. Actually it can easily avoid to the people that have bad intention in the project. So we cannot expect on that on why this KYC is so important on the project.
I never seen the importance of the KYC. Usually KYC is adopted to avoid laundry money, but in the ICO it is only to make sure that u are not from some countries like USA, China etc.
I do recognize imposing of KYC on crypto as a welcome development since this whole KYC process goes against what crypto generally stands for. The primary reason majority of the investors including myself entered the crypto market was to earn big profits(short term or long term) in an anonymous manner without being traced back to our original identity.
KYC effectively nullifies this and there is little difference between banks and crypto when it comes to investing in this aspect. I get why ICO's are implementing this stuff, but I do not support it.
KYC effectively nullifies this and there is little difference between banks and crypto when it comes to investing in this aspect. I get why ICO's are implementing this stuff, but I do not support it.
kyc is part of regulation,i think somehow is a welcome development.
I think kyc does not matter. People in the crypto world must remain anonymous. After KYC all identity information is in the middle, decryption is wrong thing in crpto world.
Kyc is not important in my opinion
The world of cryptocurrency has already evolve and those were the old style with no KYC. It's now mandatory by the government that those ICO which under their jurisdiction will require a KYC process or else they will be shutdown. Although some are not asking KYC but I think this is now the normal process we will expect a KYC in every ICO soon. Kyc is not important in my opinion
Yeah i mean, KYC is become important only because of the regulations, and thats the way they want to go if we want to have something normal happening in the crypto world, its all cool to have decentralized stuff, but its basically wild wild west out there, so its not THAT cool as one would think
The fact that KYC requires one"s identity to be availed eliminates the unanimity of the crypto user. one of the strengths of cryptocurrency is keeping its user unknown. KYC is however important when seeking investors who would like to see identity of the people taking part as an assurance so that they know what they are getting into.KYC is therefore important but not very necessary.
KYC is a crucial process for cryptocurrency and related ICO projects to be accepted in the real world. Because the world of fiat currencies doesn't want existing financial processes through currencies from unknown source.
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