KYC (Know Your Customer) AND AML (Anti-Money Laundering)
By Edmore Chikoore
KYC and AML procedures are subject to a lot of controversy, especially in the Crypto space. One of the biggest reasons why people sought after cryptocurrency as an alternative to store value and transact is the anonymity features of blockchain and crypto. Keeping ones’ information and business private is a way of life that people have been longing for and was not possible with the old systems until the age of crypto began.
On the other hand, the above mentioned is all good in a world without the possibility of malicious intent. Those very same features of Crypto and blockchain that liberate people and allow a private way of transacting are also being abused by malicious users who channel proceeds of criminal activities through the system hence becomes necessary for a lot of ICOs to conduct KYC and AML to protect themselves from being on the other side of the law involuntarily.
The pros and cons of KYC are all a matter of perspective, what angle are you looking at it from? Who stands to gain or lose? If you are running an ICO, is it absolutely necessary or just easier to do so? As an investor against KYC and AML, is it an issue of just principle? Or some have other reasons that are not necessarily acceptable?
