What is KYC? Why Should ICO Comply with KYC/AML?

2017 has been the time for ICO — A new creative type of financing that includes issuing of a new digital token to early investors and speculators on a blockchain-based platform for trade in return of Bitcoin or Ether.

Since the beginning of the year, ICOs have brought over $2 billion up in financing. This outperformed the sum, raised for more conventional VC funding of bitcoin and blockchain new companies.

The laws change fundamentally by the nation. A few nations like China and South Korea have already restricted ICOs. Others are pondering on whether a token sale constitutes a security and this clearly relies upon the kind of token sale.

Shockingly, many growing business entrepreneurs, don’t consider the ICO. Besides, the regulators have an honest reason to prevent money laundering and corruption while securing its investors. Now we’re seeing that ICOs are increasingly picking to follow KYC (Know Your Customer) and AML (Anti Money Laundering) necessities amid a token deal — even though they’re not made compulsory and mandatory to conduct.

ICO are the most trending pattern in cryptocurrency today. They enable startups to raise fund without having partners and stakeholders to follow and supervise closely on spending and organizing money related return.

More ICOs are picking to agree to Know Your Customer and Anti-Money Laundering controls to reveal more transparency and connect more trust with doubtful speculators.

What is KYC?

KYC remains for Know Your Customer.

In the event that you take part in cryptocurrencies as a money service business, you must know and follow KYC. For eg., if you are planning about starting an exchange, or an ICO, you are bound to abide by the KYC prerequisites.

Continue Reading : Advantages of KYC

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