If you’re working in the crypto space, or you are a crypto enthusiast, it would be a good idea to familiarize yourself with KYC and AML regulations. KYC stands for “Know Your Customer, while AML is short for “Anti Money Laundering.”
Together, these two sets of regulations help banks and global financial institutions do their due diligence about account holders, recognize fraudulent transactions, and prevent money laundering — and they could be critical for the future of crypto. Why?
KYC/AML Will Help Exchanges Avoid Violating International Regulations, Encourage Mass Adoption
One of the most concerning things about cryptocurrency and cryptocurrency exchanges is that many of them do not abide by KYC and AML regulations — and, in fact, these exchanges are illegal in many countries because of this.
This is one of the main things that has hindered mass adoption — and particularly institutional adoption. Most large corporations who are wary of stiff fines for violating international laws will not want to work with crypto exchanges or any kind of crypto instrument that does not abide by KYC and AML regulations.
However, if KYC and AML verifications methods are introduced to crypto exchanges, and basic information about users is required to ensure that they are performing legitimate transactions, widespread adoption is more likely to occur — particularly by institutions.
KYC/AML May Help Reduce Scams And Loss Of Cryptocurrencies
Given its new, mostly-unregulated nature, crypto is a world full of opportunity — but it’s also been chock-full of scams. Often, millions of dollars can be stolen by exchanges and by individual scammers — with there being almost no way to trace these crimes.
If exchanges and individual crypto companies began adopting an innovative KYC/AML system, this would make it easier to verify the identity of individuals who may be scamming other users. In turn, this would make it easier to trace crimes, pinpoint offenders, and help the government take any necessary appropriate action.
KYC And AML — The Keys For Mainstream Adoption Of Cryptocurrencies
At Verifer, we recognize that and we are adapting to international regulations like KYC and AML, as well as tracking Politically Exposed Persons (PEP), so in this way crypto and cryptocurrency exchanges may become even safer.
That’s why we offer KYC and AML services, as well as other products, such as PEP tracking and ICO verification. By enhancing both individual and institutional trust in crypto, we can build the future of cryptocurrencies — starting today. To learn more, take a look at our ICO, and get the details about our products.
If you’re ready to try out our services, you can get a 1 Month free KYC trial now — https://verifer.io/kyc_1month_campaign .
Let’s discuss on any of our social media channels or telegram:
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