With the growing adoption rate for a digital currency, the rise in popularity of digital currencies comes with an increase in the number of scams and frauds being pull against in-cognizant users. Centralized exchange protect themselves and their customers (individual or Organization) through the need for their customers to fill and complete the KNOW-YOUR-CUSTOMER (KYC) policies and procedures.

WHAT IS KYC?

KYC is the process of verifying the identity of a customer (individual or Organization). This is done through the use of government-issued identification documents, such as a passport or driver’s license, utility bills or bank statements for individuals while Registration & License Information of a company in a given country. KYC is an important tool that can help to create a safer and more secure business environment.

HOW DOES KYC WORK?

In order to perform KYC verification of a customer or client, businesses must collect certain identifying information. This information can include the customer’s or client’s:

 Name / Business Name

 Date of birth / License Approval Date

 Address

 Phone number / Registration Number

 Email address

WHAT ARE THE BENEFITS OF KYC?

CENTRALIZED EXCHANGE P.O.V

Regulatory compliance with governments policies over Anti-Money Laundering (AML) and other financial breaches.

 KYC processes can help exchanges by protecting them against fraud, law suits and money laundering.

 It can also help businesses to build trust with their customers or clients, as it shows that the business is taking steps to verify the identity of those who are using its services.

 Increased trust between users and exchanges by taking steps to verify the identity of its users, an exchange can create a sense of safety and security that may attract new customers.

CUSTOMER (INDIVIDUAL OR ORGANIZATION) P.O.V

 Can help to protect their crypto assets against fraudsters, scams and Ponzi schemers.

 Provides information of your counter trader in cases like P2P (peer to peer) trades  It can also make it easier for customers or clients to do business with a company.  It helps prevent repeated document inspection which most financial institution often request.

Additionally, centralized crypto exchanges like #BINANCE only allows crypto traders to trade and fully unlock the platform features only after going through the full KYC process.

WHY USER’S SHOULD KYC

It is important to remember that KYC is designed to protect you, as well as the exchange that you choose to do business with - especially when you are dealing with an industry as Volatile as crypto. Overall, KYC is a necessary part of doing business in the modern world, and you shouldn’t be afraid of it. CTA: Cryptocurrency exchanges like #Binance allow users to buy and sell cryptocurrencies, such as Bitcoin, Ethereum, and over 600+ cryptocurrencies on their platform.