There are many reasons for this:
1. If an ICO can demonstrate proper KYC then it will be possible for all parties to establish credibility with banks and follow Anti-Money Laundering regulations. Voluntary compliance thus gives a project and its participants a stamp of legitimacy with regulators and banks.
2. 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.
3. Voluntary KYC compliance may help ICOs reach a larger global audience and expand the number of jurisdictions in which they can take place.
4. To avoid the creation of fake ICOs.
Topic: Why some ICO required KYC? (Read 499 times)
Each ICO has its own policies towards its investors. There is a policy that prohibits investors in a country to follow its ICO. Therefore the function of KYC in my opinion to see the data for investors and do not violate the rules made ICO. But behind it all there is a downside, that we are all worried about our data that may be misused
It looks like it helps to get a listing on good exchanges where KYC is required.
It's a regulatory issue. It's not just KYC. It's KYC and AML.
I don't get you my friend. What do you mean by AML ? Is it about anti money laundering ?
KYC means Know Your Customer.. So new ico's gathering information before selling. Then they can prove their tokens won't use for illegal processes.
Many ico are starting requesting KYC also to Bounty hunters even if the revenue generated is not a pure investment.
I don't understand this logic.
I don't understand this logic.
I think they doing it to avoid scammers to make multiple submissions, so it's good to other bounty participants & project it self!!
I agree with you but I think that this is a work of bounty admins and cannot be delegated to the KYC
Many ico are starting requesting KYC also to Bounty hunters even if the revenue generated is not a pure investment.
I don't understand this logic.
I don't understand this logic.
I think they doing it to avoid scammers to make multiple submissions, so it's good to other bounty participants & project it self!!
Many ico are starting requesting KYC also to Bounty hunters even if the revenue generated is not a pure investment.
I don't understand this logic.
I don't understand this logic.
It's a regulatory issue. It's not just KYC. It's KYC and AML.
https://imagizer.imageshack.com/v2/640x480q90/924/83FoS8.jpg
https://imagizer.imageshack.com/v2/640x480q90/924/83FoS8.jpg
This is now required while some ICO would surely scam anybody they would first provide information about the project and the people behind it, That is why they should know their client or customer so they will not get scam by that certain ICO, We can never know what ICO are legit or not and we should be aware and prepared for it.
Many projects, which wasn't scam, fall down after ICO. it is not about all ICO projects...
So, some ICO need KYC, and, i really understand, how ICO can be hard for people, who creating this project.
So, maybe, they have only one achievement - going to ICO.
They haven't achievement - developing their project.
And, when they going to ICO, they thought, that they achieve their goal.
okay! this one is really confusing
I thing the KCY gives some reputation to the ICO's too... you can identify who buys the coins for example, you don't say I have 10000 persones with my coin but you say you have A, B, C and tihis fives more epower to the coin.
This is now required while some ICO would surely scam anybody they would first provide information about the project and the people behind it, That is why they should know their client or customer so they will not get scam by that certain ICO, We can never know what ICO are legit or not and we should be aware and prepared for it.
Many projects, which wasn't scam, fall down after ICO. it is not about all ICO projects...
So, some ICO need KYC, and, i really understand, how ICO can be hard for people, who creating this project.
So, maybe, they have only one achievement - going to ICO.
They haven't achievement - developing their project.
And, when they going to ICO, they thought, that they achieve their goal.
i don't think this section belong to bitcoin discussion section since it talk about ICO not about bitcoin i suggest that you should move this to altcoin discussion section. Although since you brought this up, the answer is ICOs especially in america required that their investors are required to do an identity verification since it was ordered by SEC in america to prevent fraud or money laundering. i don't know they do this in other countries too.
I think now it's moved to Beginners & Help section, Sorry for my misunderstanding of posting to the wrong section.
Btw i have much learned by all who posted their opinions in this post
I think KYC needed for trusting each other... but carefully to pick a good ICO...
have a good luck guys....
have a good luck guys....
KYC is a framework for ICOs which enables them to know/ understand the customers and their financial dealings to be able to serve them better
- To enable the bank to have posstitive indentification of its relationship
- Is in the interest of customers to safeguard their hard earned money
- To enable the bank to have posstitive indentification of its relationship
- Is in the interest of customers to safeguard their hard earned money
That's okay,devs want to know who buys their coins. In addition, nowadays some exchanges when listing coins also require the passage of this procedure at the stage of ICO.
This is to reduce fraud and to protect the customers. Many countries, so far has made it mandatory to the wallets companies and cryptocurrency exchanges to make KYC mandatory.
I think future all ICOs will ask for KYC.Even bounty campaign started asking KYC
Some ICOs required KYC simply to know the customers inorder prevent money laundering, fraud, or any illigal activities that may violate the rules.
there are a lot of ways for making money one method is to steal other people's identity and documents and sell it on the dark market. these ICOs are currently gathering cryptocurrency users information and creating a database from them which then they will sell elsewhere and make some money from doing so.
Can you provide a link so that we would be aware of this modus. Usually i join bounty and they ask for KYC to get the bounty tokens so i am obliged to do so. If only i am aware of this scam i would not give up my identity.
i don't think this section belong to bitcoin discussion section since it talk about ICO not about bitcoin i suggest that you should move this to altcoin discussion section. Although since you brought this up, the answer is ICOs especially in america required that their investors are required to do an identity verification since it was ordered by SEC in america to prevent fraud or money laundering. i don't know they do this in other countries too.
Now a days there are lot of regulation are being announced by government bodies of several countris to tackle problem of money laundering, protection of investors, security, licensing etc. To be on safer side lot of ICOs are considering KYC, as we all know KYC is one of the adopted methods by lot of financial institution to track the investors identify, money laundering, terror funding etc.
KYC means Know your custumer, ICO requires the ICO's to identify their address, nationality of the customers and ensure the identification of individuals, it would help to prevent fraud, impersonation, and also not to use illegal activities.
This is the method of devs. to get to know the customers, by knowing the customer so they can answer and be accountable because many countries say that ICO is a means for money laundering and all customer ICO is fictitious.
There is a strong possibility that they are stealing the data and selling it to marketers. There can be huge demand of KYC related to bitcoin users.
Most ICO requires KYC from clients and even bounty participants due to the location of the project. The regulation and licencing authorities may demand it before allowing the project to go legal and operate. But after they take, off, where you sell or buy your tokens will also demand KYC,that is a strict exchange. It is hard to come by tokens of such project that demand KYC on a decentralize exchange.
Hi friend the time of anonymity ended and many State requires these procedures.
It you don't like you can wait exchange listing
It you don't like you can wait exchange listing
I think its basically due to sec regulation so kyc need ro be done so that some countries that the rule of their counrty prevent them from ico will not participate
KYC is needed to know where the person lives, And it can also show a clear identity, and can be accountable. there are also ICOs that use KYC because there is a ban from one of the countries to follow the ICO. then in need of KYC, therefore the ICO can know if there is a cheat it will be disqualified. I myself really do not like it if there is an ICO project that uses KYC, because I think it is complicated and hard, until today I have never joined ICO using KYC.
Because after ICO Tokens Can be buy anyone without submitting any KYC 
Totally confusing this process
For me, i think they need to get the kyc of the users is because they need to know personally the user and for formality of the transactions for this kind of business. Some ico need kyc and some are not but for me the best thing to do is to have kyc for some instances they need it for transaction of the token to you. Totally confusing this process
Tokens are made from different country such that some government in their places requires it so that their token is legalize. They need to comply to the law so that there will be no problem along the road. Also, knowing your customers really helps to filter out those who are a fraud.
I am not doubting their intentions but some people might be collecting data and then selling in dark net. Even big companies like Facebook do this, so I will not be surprised with some new project also taking the same route.
Most of ICO project said it is required to prevent a hacker and illegal investor. While personally, I think it is a sign of weakness in their team if they worry about the hacker. A sign of incapable the team to check and verifying the system, so I will not put any single trust on a team like that.
Crypto money and Bitcoin were recognized by people very soon. Some crypto-moneys reached the amazing levels in a very short time and some people were rich. Also, when doing this, there is no control. You only deposit the money and you are waiting. A perfect opportunity for fraudsters has emerged.
Fraudsters steal people's investments by promoting themselves as a project company. Some people have received too many support takers from projects using many fake accounts. These kinds of frauds have happened a lot.
With the KYC system, it is planned to avoid such frauds. By using fake accounts, deception of project owners will be prevented. Thanks to the KYC system, every person can only apply once...
Fraudsters steal people's investments by promoting themselves as a project company. Some people have received too many support takers from projects using many fake accounts. These kinds of frauds have happened a lot.
With the KYC system, it is planned to avoid such frauds. By using fake accounts, deception of project owners will be prevented. Thanks to the KYC system, every person can only apply once...
I think for the further success of the project and its development it is required to know customers and investors. What are they? In general, the reasons can be different.
Its a way of making sure they dont get the project involved in any form of money laundering or any form of illegal activities.that's why now adays too some exchanges ask for kyc too.Eventually that will become a norm.
The reason the ICO requires KYC is that when they register to run their coin, the Securities and exchange require them to comply with KYC and AML rules. So they ask people to comply, but after the ICO, when their coins are in exchange, the KYC is no longer needed.
From what I have observed and understood about some ICO in need of KYC is that they want to erase or should I say limit the possibility of one having multiple accounts.
coz many alts i think, and each ICO needs more ppl to spread the word, what point if someone will make 100 avas and will share among them the info?
Kyc means knowing your customer and by doing this called kyc, they will the better idea of those people buying from them. Also, I believe that with kyc the government will later have the control of the cryptosystem and people into crypto in their country. Kyc is good but the team make it bad by slow with the process of doing it.
May be because of Governments, however, you cannot ensure that they will sell your data, so It would be better not to share your identities with ICOs.
For the reason of avoiding dummies and also to verify each person if they are able to buy tokens or receive it, and other companies dont accept china and america for their project.
I really do not know why bounty hunters are asked to do KYC before they are paid their token by some bounty projects. A participant in ICO can be asked to do KYC because the project team what to know the source of fund being invested in their project but for bounty hunters i do not get it.
This will let ICO more secure and legit.To increase security and reputation of a token, they require know-your-client kyc process to ensure that a person has no legal liabilities and also to avoid scams, because through kyc, they can easily track suspicious holders.
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
Totally confusing this process
Know Your Customer of KYC is really annoying for me. Aside from providing them with your private info, you also need to give your ID or any identification like passport and national Id in which be very vurnerable for fraud. Some ICOs requires KYC because they want to make sure that their investors are not from particular country in which they are not allowed to participate.
They do so to confirm the user, but in my opinion this is not necessary and not important. Confirm that the user is not always holding them tokens forever, they will sell tokens to others and others sell to others.
KYC means that " Know Your Customer '. Fund raised happened during ICO. In Token Sale, they need to verify buyer's identity and residency. For that, they used KYC process. Knowing residency of each buyer is essential due to national legal regulations. Knowing Identity restrict that opportunity to create multi-account and make sure that buyer is not a part of a sanctioned list, a criminal, a terrorist, or a corrupt organization.
But There is more risk because of we send our private data to an unknown organization to review our information. We can not be guaranteed that security of that data.Despite, KYC is an essential task to run long-term in Crypto Project.
Thanks.
But There is more risk because of we send our private data to an unknown organization to review our information. We can not be guaranteed that security of that data.Despite, KYC is an essential task to run long-term in Crypto Project.
Thanks.
I'd steer clear of icos requiring personal information. Are contributors customers?
because the government where they are forced. It is in my personal opinion, they were forced by a loan organization or their government. The founders of the ICO project always wanted to sell tokens to buyers in the simplest way.
Because there are some countries that prohibit buying coin or participating in the purchase of cryptocurrency such as usa and china so that in every purchase of tokens require KYC in order not to violation.
The KYC system is to find out the identity of ico participants, as many participants follow ico with multiple accounts, so with a KYC system, each ico attendee can only follow ico with only one account, because each account must send its real identity, and I think it's good to reduce participants who use multiple accounts.
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
Totally confusing this process
ICO have or needed to create your own KYC, in the first place you should know the meaning of KYC. ( Know Your Customer ) in this case you will passed some valid copies of your I'd including passport and drivers licence. so they know you are human not a bot. cause some of bounty hunters and ICO members was controlled by computers.
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
KYC= Know Your Customer is one of the criteria signed by the ICO initiator companies during their registrations. Apart from the need to comply with the regulators, the companies need to stand clean before any jurisdiction. If the ICO is over, the whole burden of KYC is lifted off their shoulders and then to the exchanges. Totally confusing this process
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
Some ICO are required to comply with KYC policy, depending on the rules of the SEC of the country where they are doing this crowd funding, if the government does not have any rules or law about it yet, then any ICOs that will start on that country can do a crowd funding without complying with KYC. Personally I don't like the idea of this, giving your personal information to those developers of the project, you'll never know but there's a chance that those information will get leaked and putting yourself on risk. I mean, this is good for ICOs because they will get an approval to make a crowd sale by doing this but for all investors this will just add to the risks, so for me it is very unnecessary. Totally confusing this process
Know your client system was now required in some bounty campaign but i totally dont agree in that. You can give tokens to participants without it. This KYC was giving the participants doubt about the project because KYC require personal information but not all participants dont care about our info. We also care for our security.
i think those companies wanna control illegal activities. they need to know extacly who are investor and where they're from.
I think it's just to know the identity only, to maintain the security and also the rules of the forum, so with KYC, the team can recognize the identity of each participant.
I agree with the KYC system, but if more people feel harmed by the KYC system, then I should follow the majority.
I agree with the KYC system, but if more people feel harmed by the KYC system, then I should follow the majority.
This is a new way to reduce existing cheats. And to verify everyone who follows the ICO. I think KYC also adds security for ICO participants.
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
ICO requires KYC to validate the actual identity and residency of the of the investors. They want to check if the source of funds are legitimate. So ICOs goal is to do the business with legitimate people.For bounty participants it ia a one way to check for multiple accounts. Totally confusing this process
KYC or Known Your Customer need to implement to join the ICO so the participants it is the real people, not fakes. For this purpose, I agree with it. Thanks
KYC is for the safety of the ICO in order to secure it and avoid any kind of fraud and scams. It is great to be required for the investors of each ICO but do not for the bounty participants because not all participants has a valid document to be sent for the verification which make us nothing to earn and your effort gonna be not worth. 
KYC or Known Your Customer need to implement to join the ICO so the participants it is the real people, not fakes. For this purpose, I agree with it. Thanks
The reasons are many; register investors, identify them, make sure that the maximum amounts possibly provided by the ICO are respected, know the counterparty adequately also for anti-money laundering.
KYC is intended as a formality of procedures required for corporate management, both to facilitate the data collection of each investor who follow ICO as well as a form of transparency for both users and companies. KYC is also sometimes required for legal legality within a country, to avoid the use of digital assets for other criminal and illegal acts. I agree that KYC is sometimes little bit confusing, but it will all be easy if you follow the process as directed.
Because they do not want people enrolled in the program to be virtual people, many join the ICO with more goals like earning more commissions and this will make ICOs more difficult.
One of the reason control that one investor not buy more than limited tokens on ICO
there are a lot of ways for making money one method is to steal other people's identity and documents and sell it on the dark market. these ICOs are currently gathering cryptocurrency users information and creating a database from them which then they will sell elsewhere and make some money from doing so.
if that's one of the reasons why most ICOs need KYC, I think it's a misuse of the identity of others, it's so sad Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
Totally confusing this process
some people are more interested in cheaper prices and also because it is supported by a project that thinks "this is a promising project" or at least like that. when the token listing in the market, we do not know the initial price, whether the price will go up or will be many dumper who prefer hit & run
on the part of the company, KYC is useful to avoid any fake users or some of their reasons such as avoiding money laundering and so on
Companies need KYC to make the crowdsale process transparent and legitimate.
Actually I believe that when a project requires it, it's more trustworthy
Actually I believe that when a project requires it, it's more trustworthy
This is now required while some ICO would surely scam anybody they would first provide information about the project and the people behind it, That is why they should know their client or customer so they will not get scam by that certain ICO, We can never know what ICO are legit or not and we should be aware and prepared for it.
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
Totally confusing this process
The reason why ICO's are requiring KYC is because when they register to launch their coin the Securities and Exchange are requiring them to comply with KYC and AML regulations. Thus they are asking people to comply with the requirements but after the ICO when their coins entered the exchange KYC is no longer needed. But if you buy at their website KYC is still required.
This is due to regulations on a country by country basis, depending on where they're starting their ICO. I know in the US anyone who is starting is an ICO is required to KYC or Know Your Customer, which pretty much means they're going to have to collect some data on people so just in case the regulators want to audit / know what's going on they're going to be able to get the data with ease.
Makes sense as most people aren't going to report ICO earnings which they without a doubt have to do.
Makes sense as most people aren't going to report ICO earnings which they without a doubt have to do.
The ICOs that do not require KYC you should avoid. Those are scams (or at least the possibility is very high).
The ICO organiser companies can be established in many locations around the world (most popular is the US, UK, Russia and crypto heavens like Estonia or Switzerland). There is one common thing in these countries: the regulation requires KYC in case of crowd-funding.
On the other hand, none of the biggest exchanges will list any coins which did not have KYC during the ICO. (same reason: regulation).
The ICO organiser companies can be established in many locations around the world (most popular is the US, UK, Russia and crypto heavens like Estonia or Switzerland). There is one common thing in these countries: the regulation requires KYC in case of crowd-funding.
On the other hand, none of the biggest exchanges will list any coins which did not have KYC during the ICO. (same reason: regulation).
I don't think this is confusing. Regulations are becoming more and more strict and nayone who wants to run legitimate business needs to stick to those regulations and rules. Maybe clinets don't like that process very much but in fact it's necessary and it protects the final users and provides better service.
KYC is required to some ICOs because this is the way of assuring of the workers on the bounty that they are true and existing people, of course these ICOs don't want to put their money on waste. Well, it is just my opinion based on observations because I once have joined a bounty campaign that required KYC. It is annoying at the first place, but you will understand why later on.
Its because the ICO needs to know their costumers so they can avoid spams,cheaters on refferal programs or on airdrops even bounty programs. This will let ICO more secure and legit.
maybe the devs want fair distributions that with required KYC for every investors this is could be avoid to abusing cheating especially for airdrop program however indeed sometimes we're fear with submitting our KYC for the particular ICO project because possibly our personal ID will be misused but i personally don't mind to submitting my KYC as long as those project is legit
I don't think this is confusing. Regulations are becoming more and more strict and nayone who wants to run legitimate business needs to stick to those regulations and rules. Maybe clinets don't like that process very much but in fact it's necessary and it protects the final users and provides better service.
I think it's primarily to keep the regulatory bodies from going after them first. I think this year it's quite likely we will see a bit of a clamp down on the ICO that are following no best practices whatsoever. I think they will go for the low hanging fruit first so I think this is a case of ICO's trying to add some form of standardisation to their procedures
because maybe if they put the kyc to get to know the people and for that it might not have been that other people because other people used the other transaction for the second time they get the token they bought
Is a new way to protect projects, especially new ones from the paralyzing and ensure continuity of work, which makes it more serious and to know the owners of the largest amount of tokens .
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
In my opinion, to increase security and reputation of a token, they require know-your-client kyc process to ensure that a person has no legal liabilities and also to avoid scams, because through kyc, the token maker knows who are their token holders and with that, they can easily track suspicious holders. And the identity usage is limited to that or else they might violate some laws. So there's nothing to worry about kyc process. Totally confusing this process
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
KYC= Know Your Customer is one of the criteria signed by the ICO initiator companies during their registrations. Apart from the need to comply with the regulators, the companies need to stand clean before any jurisdiction. If the ICO is over, the whole burden of KYC is lifted off their shoulders and then to the exchanges. Totally confusing this process
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
KYC= Know Your Customer is one of the criteria signed by the ICO initiator companies during their registrations. Apart from the need to comply with the regulators, the companies need to stand clean before any jurisdiction. If the ICO is over, the whole burden of KYC is lifted off their shoulders and then to the exchanges. Totally confusing this process
Some reason is in preventing bounty hunters from multiple accounts they required KYC for legit accounts I hate passing KYC because i think this is risky thing how about if they use it in scamming and your identity they will be used and you don't know that you're will be punished by something that you didn't made.
I do not think KYC should be too useful, and maybe KYC just to make sure the identity or also to keep the double account from participating in their bounty.
there are a lot of ways for making money one method is to steal other people's identity and documents and sell it on the dark market. these ICOs are currently gathering cryptocurrency users information and creating a database from them which then they will sell elsewhere and make some money from doing so.
Seriously ?
So Most of people already lost their identity on the internet. this is really bad to hear
It is because the parent companies need to show where they obtained their funds from and verify its not come from illegal activities. Once listed that burden technically shifts to the exchanges, or individuals to be responsible.
Really thankful to you for give me answer penig
another question; if we submitted to our identity via KYC process, is there have any risk to leak our personal details ?
there are a lot of ways for making money one method is to steal other people's identity and documents and sell it on the dark market. these ICOs are currently gathering cryptocurrency users information and creating a database from them which then they will sell elsewhere and make some money from doing so.
It is because the parent companies need to show where they obtained their funds from and verify its not come from illegal activities. Once listed that burden technically shifts to the exchanges, or individuals to be responsible.
Because after ICO Tokens Can be buy anyone without submitting any KYC
Totally confusing this process
Totally confusing this process
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