KYC: What is it, and how will it improve the Linkcoin user experience
After much deliberation, Linkcoin is pleased to announce that they have intergrated KYC requirements into their sign up & settlement processes. Although this goes against the ethos of Blockchain and decentralization, we feel very strongly that creating a user experience that is safe for all users, is a necessary stepping stone so that one day, a truly decentralized system of commerce can be achieved.
What is KYC
As a technology that was born on the internet, cryptocurrency is marred with anonymity and secrecy. Once consumers have their hands on cryptocurrency, it is very easy for them to buy and sell various goods online, while it is very difficult for a government or regulatory body to see who bought what. One of the most prominent solutions to this is called KYC or “Know Your Customer”. KYC is a framework that banks, exchanges and other money lending services must follow. The purpose of which is to prevent these lending services from being used, intentionally or unintentionally by criminal entities. All KYC is, is a list of guidelines that money lending businesses must subject their customers to if they want to be able to register and use their services. This allows the company to develop a clearer idea of who their customers are, and why they need the services they are requesting. Having such information allows them to be vigilant against illegal activity and gives them more insight into what requests are illegitimate and which ones are legitimate. Although their is no universially recgonized list of standardized KYC requirements, the most common ones are as follows:
Full Name
Residence Address
Citizenship
Birth date
Photo of Government Issues ID (Drivers License, Passport, ID Card)
Social Security Number or Tax Identification
Bank Statement
Utility Bill
Photo of Bank Card
How does KYC Effect Linkcoin Customers:
As an end-user on Linkcoin.pro, the intergration of KYC will have little to no impact on your trading activity. The only tangible change adding KYC will have on the customer experience is making the sign-up process a little longer. Instead of just inputting your email and password, you will now also have to submit some personal information such as:
Country you live in
Full name as recorded on your passport
Passport number
Ultimately the goal of KYC is to expedite the adoption of Blockchain services into mainstream markets. If financial services in the Blockchain space can verify who their customers are, then they can create a ecosystem that isn't saturated with money launderers and criminals, and thus offer a service that is safe for the everyday consumer to endorse and use.
