“Know Your Customer” (KYC), also known as “Know Your Client,” is a process by which a business verifies the identity of its clients. The process is mandatory for banks, lenders, insurance providers, and all remaining financial institutions, including most digital asset trading platforms that have fiat on and off-ramps, like AscendEX. KYC is a data-driven process that allows companies to check if their customers are who they claim to be, determine a customer’s suitability for their services, and avoid any malicious or criminal activity associated with using their products and services.
Customers are typically required to submit KYC details when opening a new account or when a change has been made to their information. For example, if a user officially changed his or her name a few months after creating the account, the user will be required to update their KYC information.
Why is KYC Important?
Overall, the objective of KYC is to prevent trading platforms and exchanges from being used, intentionally or unintentionally, by criminal organizations or individuals for money laundering, terrorism financing, and other illegal activities. By implementing KYC processes, companies can properly understand their customers and their financial dealings to reject applicants with questionable or risky backgrounds. Using KYC data, trading platforms can better monitor client activity and avoid unnecessary risk.
KYC requirements can vary drastically between different exchanges. For example, some trading platforms require little to no information to register, while others require users to share proof of their government-issued ID, taking several days to verify new accounts.
Cryptocurrency trading is a global industry, and there are varying laws and requirements in different countries. As a result, exchanges in the same region could have differing KYC requirements based on their interpretation of the law. Listed below are some standard requirements that users might have to provide on different exchanges, including AscendEX:
- Full name
- Date of birth
- Phone number
- Email address
- Physical address
- Country of residence
- Photo/scan of a government-issued ID
- Copy of utility bill
- Photo of a user with their ID
KYC on AscendEX
AscendEX has a thorough KYC process for not only its users but also the projects listed on the platform and its institutional trading clients. Extensive due diligence is completed for each potential listing project to ensure only the highest quality projects get listed on AscendEX. New projects must provide KYC information on their company and its financial standing and they must obtain a qualified third-party legal opinion before a project is qualified for listing. The rigorous standards set by AscendEX’s legal and compliance teams for institutional partners, listings, and retail customers supports a high quality and properly regulated trading experience.
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