KYC: The Journey To A Secure Transaction With Coinbubble.
Table of contents
- What is KYC
- What is KYC verification in crypto?
- Why KYC?
- Benefits of using KYC in crypto
- Why do I have to verify crypto?
- What happens when You Don't Complete KYC?
- How long does crypto verification take?
- Why does Coinbubble require my ID?
- Steps in setting up your KYC in Coinbubble.
What is KYC?
Financial institutions use the Know Your Customer (KYC) process to verify customers' identities and understand their company.The traditional KYC process includes a variety of due diligence methods as well as continuing screening and monitoring while clients use a company's services. KYC is critical in financial situations because fraudsters use a variety of tactics to bypass AML/CFT restrictions. Financial service providers are far better positioned to detect client misuse and prevent crimes such as money laundering and terrorism funding if they create a detailed and accurate risk profile for each customer.
What is KYC verification in Crypto?
KYC is the initial level of anti-money laundering (AML) due diligence. When a financial institution (FI) takes on a new customer, KYC procedures are immediately implemented to identify and verify the customer's identification.
Why KYC?
Despite recent turbulence in the digital currency market, 420 million users worldwide still use their services. As a result, governments throughout the world are researching ways to regulate and integrate Cryptocurrency into the financial system. This introduces new client verification and monitoring standards, which are required for businesses to onboard customers and conduct business with other financial institutions, such as banking partners.
However, because cryptocurrencies are cryptographically secure on their blockchains, transactions between users are typically anonymous and completed in seconds. Cryptocurrency transactions' speed and anonymity make them appealing to criminals looking to avoid traditional AML/CFT restrictions. Illicit cryptocurrency transactions reached approximately $20.1 billion in 2022, up from $18 billion in 2021.
Crypto exchanges must prioritize AML/CFT compliance as global authorities focus on cryptocurrency transactions. To solve anonymity concerns, Cryptocurrency exchanges should employ know-your-customer protocols to identify customers and their usage patterns.
Benefits of using KYC for crypto exchanges
Crypto companies, like other regulated entities in the financial space, must conduct identity verification checks and KYC procedures to establish and validate their customers' identities. But, beyond achieving compliance standards and avoiding noncompliance penalties, what are the advantages of employing strong KYC systems in cryptocurrency exchanges?
Reduce the risk of legal issues.
Because the crypto regulatory landscape is far from settled, organizations face constantly altering legal expectations. By raising the bar and proving a high degree of KYC compliance, cryptocurrency exchanges can reduce the likelihood of legal issues while also demonstrating to authorities that they are engaged and committed to maintaining compliance as international laws change.
Improve customer trust and openness.
Customers and banking partners are more inclined to trust a cryptocurrency exchange that is proactive and comprehensive in establishing and verifying customer identities, since this displays the firm's commitment to knowing who it is doing business with. Customers may feel less safe or comfortable utilizing a business that lacks strong KYC standards, and other financial institutions, such as banks, will not want to jeopardize their own reputations.
Improve the stability of the cryptocurrency market.
Anonymity, market volatility, intense media scrutiny, and supply and demand all contribute to the cryptocurrency market's higher volatility than conventional markets. Exchanges that implement additional identity verification processes as part of their KYC checks contribute to market stability and investor confidence.
Reduce the risk of money laundering schemes.
Vigorous KYC checks can reduce the danger of money laundering and fraud since criminals are less likely to use that business to deposit or layer illicitly obtained cryptocurrency. Essentially, the more stringent the identity and verification measures, the greater the disincentive for fraudsters.
Why do I have to verify crypto?
Crypto KYC (Know Your Customer) is a regulatory obligation for centralized exchanges to verify their consumers' identity. The system prevents users from using cryptocurrency for money laundering, tax evasion, or financing illicit activities.
What happens when You Don't Complete KYC?
If you do not complete the KYC process, you may be unable to use all of the functions of Coinbubble. You will only be able to conduct limited transactions without providing KYC information.
How long does cryptocurrency verification take?
The process can range from a few hours to a couple of business days, depending on many aspects, such as your country of application, nationality, and image quality.
Why does Coinbubble require my ID?
Coinbubble takes regulatory responsibilities very seriously, including combating financial crimes such as money laundering and terrorism funding. That is why we request identifiable information (ID) from our customers.
Steps in setting up your KYC in Coinbubble.
After downloading the app, follow the following steps. If you don't have it, get it here.
Step 1: Open the app.
Step 2: Navigate to the bottom right corner and click on “More”
Step 3: Click on “Account Verification”
Step 4: Input your Personal Information.
Step 5: Snap any of the required government IDs and wait for verification.
Wait for your Verification to be processed. It might take a few hours to a couple of business days, depending on many aspects, such as your country of application, nationality, and image quality.
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