KYC services play a vital role in conducting an ICO in more than one way. They can make the entire process transparent and can boost the credibility of the company intending to hold that ICO. Digital KYC services also assist the organizers to blacklist individuals that can pose financial crime risk for the initial offering. Here are some of the detailed reasons why every ICO must involve a trustworthy KYC service provider like Shufti Pro.

Regulatory Compliance

ICOs are attracting huge interest from regulators of financial world. They are interested that who are the people showing interest in these ICOs and what is the source of their wealth that assist them in making investment in these ICOs. In the hindsight, this interest is not entirely ill-placed. ICOs and cryptocurrency has been attracting lot of criminal elements to transfer their funds from one corner of the world to another. Then there is the case of money-laundering activities being done under the guise of cryptocurrency by several individuals.Involving services of a 3rd party KYC services provider can enable ICOs to offset heat from financial regulators

Actually Know Your Customers

KYC services are like bouncers at the front door of a club. You only allow those customers that are actually going to spend money in your ICO and are genuinely interested in buying a monetary interest in your investment venture. Digital KYC Services will also help reduce the risks by customizing screening criteria, so that you can be specific in eliminating financial risk persons from your ICO. This will help you safeguard the reputation of your up-and-coming venture.

Reliability and Credibility

When KYC Services are integrated in an ICO, it helps the offering entity to earn reliability and credibility among its future investors. They consider the company to be serious in performing a transparent initial offering. After all, appearances have a lot to do with the popularity and credibility of a venture like ICO. Volatility of cryptocurrency has already created lot of doubts about such ventures but when a company employs technology like KYC to ensure an indisputable offering, it will benefit from it in longer run as well. Pumping and dumping phenomenon can surely be reduced by this risk mitigation process, resulting in better ROI for investors who trusted the potential of your product at the time of ICO.

Legitimate Funding

Next generation technologies like KYC combined with AML Compliance, as provided by Shufti Pro, will give full trail of the funds collected by any ICO. Regulators will be answered aptly about the funds raised by your venture and thorough background checks will help you screen out persons, entities and companies that pose financial risk for your ICO. Shufti Pro has a databank comprising of 1000 whitelists and 3000 databases that is updated every 14 minutes. This huge databank is used to perform background checks for AML compliance that will help reduce the risk of regulatory scrutiny.