What Is KYC?
I have found many people who wonder what sort of animal is this thing called KYC. The abbreviation stands for Know Your Customer. KYC is the first step in anti-money laundering (Aml). Money laundering encases the use of money in crimes such as drugs trafficking, corruption, fraud, tax evasion and market manipulation.
When a customer provides copies of their documentation e.g identity card, driving licence, passport etc, and goes ahead to provide his face: then it becomes easy to cub money laundering.
Are All Exchanges Supposed To Do KYC?
Most exchanges are supposed to do kyc. Bodies have been put in place to ensure exchanges are kyc compliant.
The future of cryptocurrency regulation in the EU has become more transparent. On September 24, 2020, the European Commission adopted a Digital Finance Package, which includes proposals on regulating cryptocurrencies. While only a proposal at this point and a full licensing system isn’t expected until 2024, the Regulation on Markets in Crypto Assets (MiCA) proposal provides some insight into the direction of regulators.
Therefore kyc is important. The above extract was quoted from here
Pi Network Has Embarked On Serious KYC
Pi Network, after a long silence has seriously embarked on the KYC of the millions pioneers it has from most countries in the world. While pi Network is not an exchange but through the luckiest it will know the genuine from fake members.
Pi Network is a mobile blockchain mining project on a mission to give everyone access to the cryptocurrency revolution. The project was founded by a team of Stanford University Ph.D. candidates who designed a mobile-friendly blockchain mining algorithm.
Extract from here
KYC is important:
- To improve the site. Once the site is free from bad actors, it becomes good and all who are in the site feel secure.
- It removes the bad actors. Bad actors are like poison. They poison up a site and it can no longer attract traffic.
- KYC makes site owners identify all their customers by name, country, documentation and physical. This is one important aspect rather than dealing with ghosts and bots.
