What is KYC, and What Are Its Main Benefits and Pitfalls for ICO Token Sales?

KYC is one of the most controversial subjects in today’s crypto world. The number of ICOs requiring KYC verification is growing day by day. For this reason, it’s essential to have a clear understanding of this procedure. In this article, we’ll take a closer look at KYC/AML regulations so that you don’t feel like you’re in uncharted waters anymore.

The key benefits KYC offers to the table

  • preventing scammers from participating in ICOs for malicious purposes;
  • combating criminal acts (money laundering);
  • ensuring safety of investors’ assets;
  • avoiding legal, tax and reputational issues;
  • establishing credibility with banks.

Traps and pitfalls of KYC to be wary of

  • before purchasing tokens — quite a popular option;
  • before registration — a very rare option;
  • before the output of tokens — the most tricky option. If refund happens, the project defines by itself how to execute it right.




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