The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

    n-img-roi-cross

    Before You Go, Schedule Your Free Demo Today

    Valid Invalid number


    Note: Fields marked with an asterisk(*) are mandatory.

    n-exit-img-roi-cross

    Thank you for your demo request

    We appreciate your interest and look forward to discussing how our solution can meet your needs. Expect to hear from us shortly with scheduling details.

    Close

    us

    216.73.216.38

    How KYC for ICOs can Make Cryptocurrency Great Again?

    Kyc for icos

    Give people a mode of money transaction free from banks. That was the thought behind cryptocurrency. And blockchain technology – that powers the majority of cryptocurrencies – was the perfect tool to achieve that.

    But things have not gone as planned. Mention Bitcoin in a gathering and you will surely hear voices of fake KYC Of ICOs and Ponzi schemes.

     

    Start 7 Days Free Trial of Shufti KYC Services Now!


    What went wrong with Cryptocurrency?

    The deregulated nature of Bitcoin worked well in attracting money. But it created another problem. When something is not regulated people exploit it. Scammers and double-dealers started jumping on the bandwagon of ICOs with the intention of fooling people into giving their fiat currency.

    On the flip side, those that were looking to park their illegal money hit the jackpot. ICOs that genuinely wanted to create value in the world through their coins got the short end of the stick.

    The financial regulation bodies started cracking down on kyc ICOs and exchanges. ICO’s could not take investors onboard without taking the risk.

    According to a statement by the securities and exchange commission;

    “A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation”

    So, what’s the solution?

    A tried and tested solution is Know Your Customer or KYC compliance.

    What is KYC ?

    KYC stands for know your customer, it is a process that lets companies know their customers. It includes the verification process that prevents fraudulent individuals from abusing their services. Banks have been successfully using KYC services for years.

    Different financial regulatory authorities have made it mandatory for banks to comply with KYC verification to make sure that the person they are dealing with is not a fraud.

    Banks check and verify personal information through several means including document verification. They also readily appropriate credible third-party identity verification services or KYC service providers.

    Documents such as government-issued ID cards and driver’s licenses help smoothe the process of investing.

    What is AML?

    AML – the anti-money laundering act – prevents people from laundering money. ICOs can put this in place as well to ensure that the people buying their tokens are not on any black or greylist.

    KYC and AML regulations put a barrier to entry by checking the identity documents. FINRA Rule 3310 governs the AML compliance of companies.

    Advantages of Implementing KYC for ICOs

    • Deters scammers from engaging in ICOs
    • Fights money laundering
    • Protects investors’ assets
    • Fewer legal, tax and credibility issues
    • A healthy relationship with banks

    Funds raised by ICO or token sales can attract black money. But KYC and AML compliance can restore people’s faith in the blockchain based economy. Cryptocurrency exchanges can also put these compliance measures to ensure that the ICOs are genuine. Then the token economy will truly benefit the population at large.

    Related Posts

    Blog

    Built for the Threat Ahead: How Shufti Delivers Deepfake Defense 

    From novelty to weapon, deepfakes have seen a surge in accessibility and complexity and, for unpr...

    Built for the Threat Ahead: How Shufti Delivers Deepfake Defense  Explore More

    Blog

    Who’s Really Signing Up? The Hidden Risks Behind iGaming Growth

    Games of chance and wagering money have a long and illustrious history around the world, from ear...

    Who’s Really Signing Up? The Hidden Risks Behind iGaming Growth Explore More

    Blog

    When Compliance Changes Fast, How Can Growth-Stage Companies Keep Up?

    Growth-stage companies face a unique challenge: as their operations expand and regulations evolve...

    When Compliance Changes Fast, How Can Growth-Stage Companies Keep Up? Explore More

    Blog

    Choosing the Right Approach: Document versus Non-Document Verification

    In the fast-paced fintech landscape, identity verification is more than a regulatory checkbox — i...

    Choosing the Right Approach: Document versus Non-Document Verification Explore More

    Blog

    The Future of eWallets and Shareable Identities: Will It Ever Be the Norm?

    If you’ve ever added a credit card or concert ticket to your eWallet, you know it’s typically a s...

    The Future of eWallets and Shareable Identities: Will It Ever Be the Norm? Explore More

    Blog

    Fighting Back Against Merchant Identity Fraud with Sophisticated Identity Verification

    As more and more of our lives become digital, the stakes for effective fraud prevention have neve...

    Fighting Back Against Merchant Identity Fraud with Sophisticated Identity Verification Explore More

    Blog

    The Impact of India’s Data Protection Act

    If you’re responsible for compliance in India, you know the data privacy landscape doesn’t stand ...

    The Impact of India’s Data Protection Act Explore More

    Blog

    Smart Growth in Uncertain Times: Powered By Shufti

    Just five years ago at the onset of the COVID-19 pandemic, the global economy was struck by the h...

    Smart Growth in Uncertain Times: Powered By Shufti Explore More

    Blog

    Built for the Threat Ahead: How Shufti Delivers Deepfake Defense 

    From novelty to weapon, deepfakes have seen a surge in accessibility and complexity and, for unpr...

    Built for the Threat Ahead: How Shufti Delivers Deepfake Defense  Explore More

    Blog

    Who’s Really Signing Up? The Hidden Risks Behind iGaming Growth

    Games of chance and wagering money have a long and illustrious history around the world, from ear...

    Who’s Really Signing Up? The Hidden Risks Behind iGaming Growth Explore More

    Blog

    When Compliance Changes Fast, How Can Growth-Stage Companies Keep Up?

    Growth-stage companies face a unique challenge: as their operations expand and regulations evolve...

    When Compliance Changes Fast, How Can Growth-Stage Companies Keep Up? Explore More

    Blog

    Choosing the Right Approach: Document versus Non-Document Verification

    In the fast-paced fintech landscape, identity verification is more than a regulatory checkbox — i...

    Choosing the Right Approach: Document versus Non-Document Verification Explore More

    Blog

    The Future of eWallets and Shareable Identities: Will It Ever Be the Norm?

    If you’ve ever added a credit card or concert ticket to your eWallet, you know it’s typically a s...

    The Future of eWallets and Shareable Identities: Will It Ever Be the Norm? Explore More

    Blog

    Fighting Back Against Merchant Identity Fraud with Sophisticated Identity Verification

    As more and more of our lives become digital, the stakes for effective fraud prevention have neve...

    Fighting Back Against Merchant Identity Fraud with Sophisticated Identity Verification Explore More

    Blog

    The Impact of India’s Data Protection Act

    If you’re responsible for compliance in India, you know the data privacy landscape doesn’t stand ...

    The Impact of India’s Data Protection Act Explore More

    Blog

    Smart Growth in Uncertain Times: Powered By Shufti

    Just five years ago at the onset of the COVID-19 pandemic, the global economy was struck by the h...

    Smart Growth in Uncertain Times: Powered By Shufti Explore More

    Take the next steps to better security.

    Contact us

    Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

    Contact us

    Request demo

    Get free access to our platform and try our products today.

    Get started