For fear of the law.
China has banned ICO, while the us has stricter regulations on ICO, and if they don't want to face these problems, they need to set KYC.
Topic: Why most ICOs ask for KYC? (Read 435 times)
Certain countries have initiated ban over ico's. To verify whether participants were from respective countries KYC norms were followed by few ico. This doesn't affect the growth or development of the project as everything is based on the platform it is being developed as well upon the market situation.
ICO requires KNOW YOU CUSTOMER (KYC) for security porpuses. It is require so that the project won't have any problem to the investment that they are working for in the future. They do this because some other country specially USA are strick in this kind of investmeny and they don't allow their citizen to join.
if you think like that me, I think you are less passive in work. because the project in my opinion is not good in the potential.
After reading your post few times in a row I realized that KYC is a really necessary and useful thing.
if you think like that me, I think you are less passive in work. because the project in my opinion is not good in the potential.
If KYC is not introduced by the new projects then that project may face lot of pressure from Govt to shut down the project and the GOVT will be able to know about people who are contributed in the sale and then Govt can ask the people to pay taxes
Because in some countries prohibit the following Ico or bounty program and for other reasons then KYC in the practice. To be honest, I'm very uncomfortable and lack confidence in the presence of this KYC, where our identity is known / owned by the organizers of ICO or bounty program. Because there is no guarantee that our personal documents will not be misused. However, because it is a rule then we must obey it. Therefore, before Ico or bounty program, we should be careful in choosing to participate. On the bright side of KYC to reduce cheating in following the bountty program. That's my opinion
Hi , Recently most ICOs ask participants for KYC!, why the do?
Is there any official organization regulate them and monitor ICOs?
Some countries have banned icos ,like China , the US , South Korea and so on , so for obeying the rules of these countries , KYC is needed . Is there any official organization regulate them and monitor ICOs?
It is needed by these ICOs especially when an ICO is based on U.S this is because the SEC has prohibited the U.S citizens to join any of these scammy ICOs,they are just protecting themselves from a threat.In the otherhand ICOs are asking for KYC verification so they can verify if the investors arent from U.S and China so there will be no conflicts between the two.There are some downside with the KYC verification,you wont have any privacy,your id might be sold to others,and it might be used to identity thefts,either way you will still have chance to join or not to.
Unfortunately yes. Sensitive private information is actually shared to an absolutely new businesses.
There is absolutely no guaranty that it won't be sold to someone else later.
And even US based ICO cannot guaranty certain level of confidentiality.
What if the idea behind KYC is for the ICOs to know who will hold their tokens to get control over it?
It is needed by these ICOs especially when an ICO is based on U.S this is because the SEC has prohibited the U.S citizens to join any of these scammy ICOs,they are just protecting themselves from a threat.In the otherhand ICOs are asking for KYC verification so they can verify if the investors arent from U.S and China so there will be no conflicts between the two.There are some downside with the KYC verification,you wont have any privacy,your id might be sold to others,and it might be used to identity thefts,either way you will still have chance to join or not to.
Just because some teams and bounty managers are too lazy to look through theirs bounty hunters. KYC is weird thing really.
They are obliged to do so. This is almost to keep stability for their system. This helps them avoid the risk of spam from virtual users and junk accounts. They focus only on incentives for people who really care about their projects and make sure they are safe. This is guaranteed when they sign up for KYC. It is almost a layer of security created by the user himself. The protection layer created by so many people is certainly better than the one that created it
KYC is a way for the project to determine if investors o participants belongs to countries that restrict ICO and crypto-related projects, like the USA. Also I think, this is one way to tell if investors are serious about their dealings with the project.
Many-Many thanks for all your responses , Now it's quite clear what they need KYC for and what are risks behind this procedure ,
Usually I go with KYC with ICOs without any aware, now it down on me how risk it is.
Thanks again
Usually I go with KYC with ICOs without any aware, now it down on me how risk it is.
Thanks again
The ico organisers are asking for KYC in compliance with regulatory body against it. USA for instance SEC rule is against it likewise China and if you see many ico these days they will state it clearly that people from such countries are not allowed to participate in their ico.
Since the us and China have banned the ICO, their ICO targets are not for the two countries.
So they need KYC validation to verify which country the participants are from, but most of the time our KYC data security is not well protected.
So they need KYC validation to verify which country the participants are from, but most of the time our KYC data security is not well protected.
US never banned ICO. Try to avoid rumors.
There is so called US Securities and Exchange Commission.
They released the strict Statement on Cryptocurrencies and Initial Coin Offerings
Many ICO do not meet such requirements aAnd that's why most of them registered outside US and do not accept US citizens.
Simple as that.
Since the us and China have banned the ICO, their ICO targets are not for the two countries.
So they need KYC validation to verify which country the participants are from, but most of the time our KYC data security is not well protected.
So they need KYC validation to verify which country the participants are from, but most of the time our KYC data security is not well protected.
In my opinion they would like to complaince AML/Anti Money Laundry so the token not use for illegal action or other fraud activity. But should be KYC procedure only for big investor only so purchase the token will be more efisien for medium to small investor.
It's actually hard to define which size of ICO requires KYC.
Personally I don't see any problem in KYC procedure after ICO ends.
And I don't think KYC somehow hurts our crypto privacy, because we always can buy tokens on exchange later anonymously,
just a bit more expensive.
In my opinion they would like to complaince AML/Anti Money Laundry so the token not use for illegal action or other fraud activity. But should be KYC procedure only for big investor only so purchase the token will be more efisien for medium to small investor.
Jump to: