KYC? Let’s fist understand the meaning of this gobbledygook.
When cryptocurrencies first emerged, they were entirely unregulated. This is no longer the case. The KYC (Know-Your-Customer) procedure is a crucial component to evaluate and monitor customer risk. And this refers to the steps taken by financial institutions to discover customer’s identity and understand the activities of the customer (importantly to evaluate the source of fund).
In practical terms, this simply means that you must prove your identity before you use an exchange.
Why KYC exists
Even before crypto existed, KYC procedures were already used by almost all services that handle money, including banks, foreign exchanges, and online gambling sites. This means that KYC regulations are an important step forward for cryptocurrency, as they allow it to receive the same respect that mainstream services currently enjoy.
The alternative is a “wild west” where crypto-related crime runs rampant. There was once this grey area where bitcoin was seen as a tool for unregulated and illegal black markets running on the Dark Web, such as Silk Road, among others. But thanks to the fact that many cryptocurrency services are implementing KYC procedures, Bitcoin is largely being used for legitimate purposes - not for criminal activity.
How KYC works
Although identity verification may seem to be a burden, it has many benefits. Above all else, it allows savedroid to ensure that our services are not being used to carry out illegal, fraudulent, or dishonest activity. By denying services to unauthorized users, we can offer a much safer experience to our legitimate customers.
KYC directives are also closely related to Anti-Money Laundering (AML) regulations, which prevent financial services, such as savedroid, from being used to generate illegal revenue. As a properly regulated business that complies with all regulatory compliance by strong national authorities, savedroid has a hefty Anti-Money Laundering policy. Since AML is combined with KYC procedures this makes it virtually impossible for bad actors to abuse our services, and most importantly, provides an extra security layer for our customers.
KYC on savedroid
At savedroid, we carry out KYC procedures. Sometimes the process isn’t as swift as expected but this is because we keep customer concerns in mind, and security always present. Furthermore, KYC measures are often criticized due to the fact that they can be used to deny access to customers depending on their location. With few exceptions, savedroid’s crypto savings app is available globally, therefore, it is likely that you will be able to use savedroid no matter where you are. If you’re one of the exceptions, please send an email for more information at firstname.lastname@example.org
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