Why KYC procedure is important?

Cryptoindex is a tool for exposure to the cryptomarket and serves as a smart benchmark for all cryptocurrencies. The AI-based Cryptoindex algorithm is continuously analyzing more than 1000 coins applying over 200 factors, processing more than 1 million signals per second to provide a highly sophisticated index of the top 100 coins.

Why the crypto industry needs KYC?

KYC(Know your customer) — this is an important business process that certifies the identity of its clients and assesses the potential risks of illegal transactions for business-related activities. This term is also used to refer to the standardized rules of the banks and other organizations to combat money laundering and other illegal activities. This is an integral process to prevent corruption.

It is not unusual for to provide an array of documentation to show proof of identification, such as name, social security number, address, phone number, email address, photo ID, a selfie with ID.

How does it work?

You maybe asked for photo I.D. You may download your passport or photograph your document with a camera on the smartphone. Then the image is transferred to a secure system through encrypted channels with multi level protection. The system will automatically read your data and make a comparison with the avatar, check for any serious violations and any indiscrepancies. The Avatar will recognize:

  • Physical forgery of the passport (pasting in another photo or changing the text).
  • Traces of retouching or photomontage that are not visible to the human eye.
  • If the owner of the passport an adult.
  • Overdue, lost, stolen, or invalid documents.
  • Suspicious pictures (purchased on the black market packages of documents with selfie’s).

Conforming to the legislation in the Republic of Malta, a KYC procedure is necessary in order to protect investors against fraudulent actions of any parties as well comply with Anti-money laundering (AML) procedures to avoid criminal activity.

KYC practice in the world

Today’s online verification of documents is widely used in Europe and North America. This has involved major companies like Gemalto, Givision, Trulioo, Jumio, whose services are used not only by business, but also by state structures.

Interestingly, in addition to identity verification and fraud prevention, this technology is also used to quickly register customers: name, surname, date of birth, document number and other data are automatically recognized and inserted into the appropriate fields of the questionnaire.

With the development of digital technologies, it has become more challenging for criminals, to use illegal schemes for money laundering. Here at Cryptoindex we are sure, that KYC procedures can make the crypto industry safer place.

You can always check the current CIX100 composition on our MVP platform: http://cryptoindex.ai/

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