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KYC (from English Know Your Customer "know your client")

This concept came to us from the banking sector. We are increasingly asked to go through this procedure on sites dealing with the turnover of cryptocurrency (from exchanges to newly emerged ICO projects).

This procedure is necessary in order to have an idea of your counterparties, it is believed that such a procedure prevents money laundering, counteracts fraud, theft and the financing of illegal transactions. Identification of the counterparty is carried out before it carries out financial transactions.

Conducting KYC in ICO is necessary, first of all, so that the company conducting this ICO looked the most trustworthy in the eyes of government regulators. Identification of counterparties gives an accurate idea of who is investing in the project, what these funds are being paid for, and where they came from.

KYC benefits:

• the banking system is positive about this procedure, which makes it easier for a company conducting an ICO to work with the banking sector;
• government regulators do not ask unnecessary questions, since the company complies with anti-money laundering laws;
• in the long term, such companies have a better chance of long-term existence;
• the project is better accepted by the public, since it will be less vulnerable to fraud;
• tracking the movement of money, as well as linking it to a specific person; avoiding fines and sanctions.