Attention MEW Users: Happy April Fools! KYC Not Required
At midnight on April 1st, users accessing MEW’s home page would have seen a pop-up indicating that they were about to embark on a mandatory KYC/AML verification procedure.
In a Tweet the following morning, MEW regretfully informed users that “As of today, MEW requires a mandatory KYC process” and asked them to prepare their personal information.
Several media outlets featured the news, and users expressed a wide range of emotional reactions.
Happy April Fools! Did we get you, or did you see through the trick right away?
What’s KYC
When an organization has to meet KYC (Know Your Customer) and AML (Anti Money Laundering) regulations, it needs to know who is using the service and to prove that this individual is who they say they are.
This is done through detailed online identity verification procedures. It means that all of your personal information is available to the institution holding your KYC information, as well as to any other government or private organizations that it cooperates with.
KYC is a very contentious issue in crypto. On one hand, KYC violates some fundamental principles embraced by blockchain developers and users: decentralization, anonymity and financial self-custody. On the other hand, increased security in the space can reduce fear for novice users and attract more institutional investors, leading to wider adoption.
Good fun had by (almost) all
To ensure the April Fools context was well established, the KYC pop-up only went live at midnight according to the time zone of the user, with the humorous intent of the questionnaire unambiguously revealed on the first page with questions like “What’s your father’s maiden name?” and “How many red cars have you seen today?”
Most users who replied to the Tweet recognized the trick immediately for what it was and had a good laugh. Some had to pause for a minute and take a few breaths.
Occasionally, GIFS were used where words failed.
Of course, the possibility of KYC on MEW would be a genuinely alarming prospect to some users. And yet, the fact that they were ready to take the announcement seriously must also mean that they are not entirely unprepared for this course of events…
Seriously though
As a new technology and a new market, the crypto space is still full of ambiguous and highly sensitive situations.
Reactions to topics like the KYC protocol can be very heated, which is all the more reason to reflect on them thoughtfully and do the research. In the new economy, users vote with their choices — and we all know how important it is to be aware of the implications when casting our votes.
In reaction to our April Fools tweet, some have commented that banks do not prank their customers. Indeed, they don’t. But they do frequently use clients’ funds without their knowledge, and implement the KYC procedure by default.
However, most people in the Western world, including crypto enthusiasts, continue to use traditional banking services. It’s a thought-provoking paradox — one that requires attention, perhaps even action, from every crypto investor who finds themselves in this position.
Fool me once, fool me twice
Usually, April Fools Day tricks rely on catching someone off guard while maintaining a certain level of plausibility. Phishing scams, fake news and institutional manipulations of public behavior often rely on the same mechanism.
Whether it’s April 1st or any other day of the year, if decentralization teaches us anything, it’s to be informed, skeptical and willing to do the research. Being your own bank means that no one can use your funds without your knowledge, but it also means that only you are responsible for your security and your assets.
If you are going to be fooled once, let it be on April Fools Day — and never be fooled again!
Thanks for being such good sports!
Here’s to less KYC and more LOL in the crypto space!
Sincerely,
teamMEW
See full questionnaire screenshots below:
