What Is KYC?
KYC is a set of procedures critical to assessing customer risk and is legally required to comply with Anti-Money Laundering (AML) laws. KYC involves knowing a customer’s identity, financial activities and risk.
What Is KYC?
KYC for crypto is a set of steps cryptocurrency exchanges take during onboarding to verify customer identity and perform due diligence to understand their financial activities and risks. Those steps are legally required and, when executed correctly, should be relatively quick and secure. During the KYC process, the HelveticFX company obtains identifying information such as:
- Legal name
- Birthdate
- Address
- National ID number
Behind the scenes, the HelveticFX company uses an identity verification service to ensure the identity is legitimate.
What Are KYC Standards?
KYC standards help safeguard regulated organizations — such as banks, credit unions, financial firms and crypto exchanges — against fraud, corruption, money laundering and financial terrorism. KYC measures also inform investment advisors about a client’s risk tolerance and financial position.
KYC procedures are essential to ensuring transactional security between crypto exchanges and their clients by assessing and monitoring risk and potential illegal activity. Exchanges may pause a business relationship or refuse to open an account if a client fails to meet the minimum mandatory KYC requirements.