By - 16 January 2023.
KYC, or know your customer, is the process of verifying the identity of a person or business before providing access to financial services. In the world of cryptocurrencies, KYC is an important tool for preventing money laundering, fraud, and other illegal activities.
Cryptocurrencies are decentralised digital assets that are not always subject to the regulations and oversight of traditional financial institutions. This lack of central authority makes it easier for criminals to use cryptocurrencies for illegal purposes, such as money laundering, drug trafficking, and terrorist financing.
To combat these illicit activities, many countries have introduced KYC regulations for crypto companies and projects. These regulations require crypto businesses to verify the identities of their customers and report any suspicious activity to the relevant authorities.
KYC verification helps to create a more transparent and accountable crypto ecosystem. It ensures that crypto companies and projects are not being used as a front for illegal activities, and it helps to protect legitimate users from being associated with criminal organisations.
In addition to its role in preventing illegal activities, KYC verification can also help to build trust and credibility in the crypto industry. By demonstrating that a crypto project or company is compliant with KYC regulations, users can have confidence that the organisation is legitimate and is operating within the bounds of the law.
Our first crypto project verification of 2023, has been with a project called 8Bit Arcade. You can find out more about them by clicking here.