Topic: Why KYC needed for ICO ? - page 6. (Read 570 times)
Because of legal reasons. In some country's, participation in ICO-s are not allowed, and so the ICO need to check, if you are not from that country.
it is for security purposes and also there majorty of an ICOs have restricted other country to participate with their project.
Initial coin offering has been quickly emerging as the new fund-raising method being used for launching a business. Recently we have seen the requirements of KYC for ICOs are increasing. And many investors are not supporting it. I want to know why exactly do ICOs need the requirements of KYC.
It is possible to show various reasons for this question. First, I would like to point out that the project owners do not want to know their customers and have information about them. The second reason is that as everyone can guess, the ICO is to prevent nationals who are prohibited from participating. Although this seems irrational, it is an element that can cause many troubles in legal terms.
Cryptocurrencies were famous for their anonymous status. But regulations have came a long way in many countries forcing ICO to hold KYC as well before making an investment. Chinese and American citizens are prohibited from investing in most of the ICO. Since, no company wants to get in trouble because of that they hold KYC. Regulations are getting worse day by day. Cryptocurrencies were evolving as a mean of a decentralized and anonymous monetary system. But government in many countries are curbing that anonymity.
Initial coin offering has been quickly emerging as the new fund-raising method being used for launching a business. Recently we have seen the requirements of KYC for ICOs are increasing. And many investors are not supporting it. I want to know why exactly do ICOs need the requirements of KYC.
Because at the moment serious companies, launching ICO, want to do everything according to the law, it follows that it is necessary to pass KYC.
The KYC process is actually a process that protects both the platform and the customer. It is a necessary process for every area that governments want to take action, especially money laundering.
Initial coin offering has been quickly emerging as the new fund-raising method being used for launching a business. Recently we have seen the requirements of KYC for ICOs are increasing. And many investors are not supporting it. I want to know why exactly do ICOs need the requirements of KYC.
Well, it is regulatory stuff. "Protecting" investors they call it. Usually in old investing world you are not able to invest in startups and new ventures if you are not a big player. Now the icos came and all the people are allowed to invest, and that is what botters the goverment, they dont want us little people to be able to invest and earn... But you can play state lottery if you want...
Official answer in short is protecting peoples interests, so you are covered and protected...
Another reason could be that KYC compliance may help ICOs to reach different countries in which they can take place (such as USA, China, Canada etc...) and consequently expand the number of investors.
Also, if an ICO can demonstrate proper KYC gives a project and its participants a stamp of legitimacy with regulators and banks.
Also, if an ICO can demonstrate proper KYC gives a project and its participants a stamp of legitimacy with regulators and banks.
The law of some particular state such as US and China do not give free hand to ICOs. Some ICOs don't sell token to people from China and US. In order to stop them from participating then there will be the need for identity verification. Therefore KYC is important for ICOs because some countries are not allowed to participate in ICO. The authentication process is used to know those that are able to participate and those that can't participate.
kyc is required to know investor data, especially investor data from illicit country, I think kyc is also needed as a precautionary measure of terrorism and embezzlement, but I am afraid the kyc data used is not correct or sold to bad people.
This is necessary because ICOs are considered illegal in many countries to avoid problems with the law projects are asked to undergo the initialization procedure of their investors. Not all investors want information about their investments to be publicly available, so they refuse to participate in such projects and invest their money.
Initial coin offering has been quickly emerging as the new fund-raising method being used for launching a business. Recently we have seen the requirements of KYC for ICOs are increasing. And many investors are not supporting it. I want to know why exactly do ICOs need the requirements of KYC.
To make sure their participants are not from those countries are prohibited their citizens to participated in the ICO such as US, China and South Korean. For South Korean and maybe it will become a legal thing soon because south korea was considering to unban their citizens to participate in the ico again. that's the real purpose of the KYC.
Because there may be legal problems in various countries, the ICO team must require people to provide KYC information.
But most of the time KYC data is not well kept.
But most of the time KYC data is not well kept.
KYC.legal is an authentication system. ICO platform began in December. KYC.legal, as you may have guessed from the title, has aim to provide a better system for testing your client’s knowledge (KYC). Today, banks, financial institutions and crypto-currency exchanges should comply with the requirements of KYC. Basically, it means that these organizations must collect and verify personal information from clients. It is designed to prevent fraud, and is also often combined with the verification requirements of the money laundering (AML).
In any case, KYC.legal wants to create a better system for checking KYC / AML. This system is aimed to provide advantages of users and companies by developing a single, unified, user-friendly solution. Instead of individual fill requirements KYC from each service provider you can locate this on one platform.
Initial coin offering has been quickly emerging as the new fund-raising method being used for launching a business. Recently we have seen the requirements of KYC for ICOs are increasing. And many investors are not supporting it. I want to know why exactly do ICOs need the requirements of KYC.
There are country has strict rules about the ICO thats why its needed , for example some country ban ICO so if you are citizen of that country you cannot join the ICO and KYC is the way to confirm that you are not living there.
Initial coin offering has been quickly emerging as the new fund-raising method being used for launching a business. Recently we have seen the requirements of KYC for ICOs are increasing. And many investors are not supporting it. I want to know why exactly do ICOs need the requirements of KYC.
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