Why is the KYC so necessary?
One of the greatest attractions of cryptocurrencies such as Bitcoin and Ethereum, among others, has always been the anonymous aspect, in the sense that transactions are linked to an address and not a name.
Therefore, it is understandable that people are surprised when they are asked to prove their personal identity when they create accounts for platforms, exchanges and so on.
However, this is all part of the KYC process and at InnovaMinex, we want to help you understand why knowing the people who are part of your project is so important.
What is KYC?
The meaning is “Know Your Customer”, KYC for short, is the process of verifying a person’s identity before allowing them to proceed, organizations do this to know who their customers are and to confirm that their identities are authentic.
KYC is a common procedure and is implemented by many industries, not only in the world of cryptocurrencies. The KYC process will normally require individuals to provide some personal information and documents such as full name, address and date of birth.
Some documents will then be required as proof of residence and a government-issued identification such as an ID card or passport.
While this may seem quite tedious and unnecessary, it is the best way to combat money laundering or terrorist financing.
Is this a common process?
KYC may not be as popular with the crypto-community, but that does not mean that it should not be included in projects that are related to cryptocurrencies.
By knowing who the people interested in being part of the project are, companies or projects like InnovaMinex’s, can help prevent crimes such as money laundering, bribery and corruption, fraud, identity theft, and terrorism.
The KYC is designed to filter out those individuals who have no real interest in the project and are only concerned about money laundering or other fraudulent activities.
Due to recent technological advances, the KYC process can take less than fifteen minutes to verify an individual’s identity.
We are all part of the KYC community, so a few minutes should not deter us from wanting to make this sector safe for everyone.
Opinions about KYC
The problem with implementing KYC in cryptographic space is that it goes against the decentralized nature of the blockchain. Many people object to anything that requires them to prove their real identities as it goes against the original idea behind bitcoin.
The blockchain was created to create trust between strangers without having to share private information. However, this idea of total anonymity is too difficult to achieve.
In companies like ours, InnovaMinex, we need KYC procedures to protect us from criminals seeking to take advantage of unregulated cryptographic space.
Hopefully you have understood why KYC is now standard practice for any legitimate project and why this process is necessary in our world.
And now, if you have not done this process in your profile, we recommend that you do so.
It will only take a few minutes and you will need to have it completed in order to receive certain benefits.
We hope you liked the explanation and we leave you the link so you can do it:
https://members.innovaminex.com/clientarea.php?language=english
