I don’t care about KYC. Will I be OK?

1 min read

bitcoin-losses

To all cryptonians seeking a quick remedy: no, you won’t be OK. To everybody else, keep reading.


If you found yourself on this page, you probably got into the subject already in one way or another. Maybe you’ve read this blog on how easily you can KYC with AirdropAlert once and for all. Or, maybe, you’ve invested in an ICO and later struggled while placing a few tokens on the exchange that didn’t want to trade it. We can debate KYC on Bitcointalk as much as we want, but a fact is still a fact.

Trading platforms started to delist the tokens that didn’t implement a KYC procedure before or during their ICOs. 

oh_what's_this

So, what does this fuzz around KYC mean in plain English? Let’s say, you invest in a risky ICO that doesn’t require you complete the procedure during the crowdsale. Good job! 🙂 Now, you will not be able to trade your tokens through certain exchange platforms because those exchange platforms simply will not accept your tokens. Bam! Money lost.


 

Why, KYC, why?

boogie man

this pic is supposed to epitomize all the boogie men that were selling drugs and weapon using Bitcoin in its early days

The thing is that not so long ago, Bitcoin gained the attention of traders on the Dark Net – a very scary place, urban legends say.

In its early days the Dark Net was a lot of things, but it also gave users the access to the Silk Road platform, an online black market and the first modern darknet market, best known for selling illegal drugs. At the down of the blockchain revolution, the Dark Net greeted Bitcoin like family. And since then, FBI has often found it difficult to get a new angle on crypto which resulted in Know your customer (KYC) policy.


How KYC works in the financial world

kyc

KYC has been mandatory in the financial world for decades. It is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship. So, basically, the procedure helps governements monitor suspicious activities and prevent such things as illegal money laundering and terrorism financing.  Meaning, when you complete KYC, you basically confirm to have no malicious intentions and protect yourself against ICO scams!


Make your ICO experience flawless and safe! KYC once and for all with AirdropAlert or find out more on the technicalities of KYC verification!

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Blockchain wallet   ← P R E V I O U S

N E X T → Ripple wallet 

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8 Replies to “I don’t care about KYC. Will I be OK?”

  1. Sorry, I don’t get it. Is crypto is not all about freedom from convention financial shit & currencies + individual’s preference to be anonymous? KYC makes it simple to push us back to hands of govt & corrupted system. I’m not convinced with your explanation about malicious intentions – money laundering etc.. you can’t take away individual’s preference just because of the government’s inability to handle so called malicious intentions.

    Sorry if my comment hurts any crypto enthusiasts. But crypto currency is built for freedom and self control on hard earned money/assets.

    1. Hi MJ,

      We appreciate you took the effort to leave a response. We know this is a controversial topic.

      Yes, the ideology for many people is that crypto represents freedom! No more power to the banks. We get that, and initially this is what has drawn all of us to crypto.

      However, to become mass adopted we need to work with governments, institutions and even banks. The whole infrastrucutre of the world needs to change, before crypto will be usefull in real life situation.

      KYC will play an important part in it.

      We choose a decentralized 3rd party as a KYC partner who stores a user’s personally identifiable information (PII) securely on his or her device using high-level encryption and biometrics. The user chooses whether to approve or deny all requests for information. So your goverment ID is never stored on their or our server. You have full control over it!

      Using a 3rd party that focusses on Crypto, like Civic also has more benefits. If you have completed the KYC process once, you will now be verified for all projects that use Civic.

    1. Hi Rong,

      We believe it will be a necessity in the near future. Instead of KYC’ing at the different projects, you can KYC once with us and be verified for multiple airdrops!

  2. There is just a one massive problem with KYC to people who do airdrops. The idea of giving out your government issued passports/id’s to verifiy your identity for small amounts of money is just not worth it. We all know that the world of cryptocurrencies as of now is absolutely full of scams.
    Now imagine if you give out your indentity for 2 dollars or 200 or 2000 dollars ICO price in tokens (Every person values their identity differently) and it turns out that the project was all a scam. You’ve now got absolutely worthless tokens. With an added bonus there is also an incredibly high chance that your identity has been stolen and/or sold to someone else who’s using it to commit fraud.
    The loss is absolutely catastrophic. The amount of red tape one has to go through after that is ridiculous. It’s just not worth it.

    tl;dr: Just be aware whom you’re sending your identity to. Don’t fall victim of identity fraud.

    1. HI Someone,

      Thank you for expressing your concern. We have seen many smaller and questionable projects ask for goverment ID. We also did not feel comfortable doing this.

      That’s why we choose a decentralized 3rd party as a KYC partner who stores a user’s personally identifiable information (PII) securely on his or her device using high-level encryption and biometrics. The user chooses whether to approve or deny all requests for information. So your goverment ID is never stored on their or our server. You have full control over it!

      Using a 3rd party that focusses on Crypto, like Civic also has more benefits. If you have completed the KYC process once, you will now be verified for all projects that use Civic.

      If you KYC with us, this will also be reusable for future airdrops we host, so you are not doing it for just one airdrop.

    1. Hi Edriansyah,

      Civic stores a user’s personally identifiable information (PII) securely on his or her device using high-level encryption and biometrics. The user chooses whether to approve or deny all requests for information. So your goverment ID is never stored on their or our server. You have full control over it!

      You can find more info here: https://www.civic.com/solutions/kyc-services/

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