Know Your Customer (KYC)
Know Your Customer (or KYC) is the process of verifying the identity of an individual or corporate entity.
KYC for ICOs
ICOs often employ KYC due to the requirements of banking providers and/or government regulations.
In order for projects to deposit funds which have been obtained by an ICO to a bank account, they may need to supply the banking provider with sufficient data and evidence regarding where the funds came from. Projects also need to proof that they upheld to a certain standard of due diligence, such as proper sanctions screening of their customers. A diligent KYC procedure can supply a project with supplying such data.
Common Requested KYC Data
ICOs often require contributors to enter the following data as part of the KYC process:
- Full name
- Date of Birth
- Country of Residence
- Phone Number
- Email Address
- Document image (Passport, Identity Card)
- Photograph of self (often holding document and/or note)
KYC/AML requirements per Contribution Size
Banks and governments may have different requirements for KYC depending on where they are located. The requirements can also differ per contribution size.
For example, the following ICO contribution thresholds could be required by a certain bank or government:
- Up to $1,000 USD: Name, Address, Sanctions Screening
- Up to $9,999.99 USD: Standard KYC, Sanctions Screening, Photo ID (document scan and photograph of self)
- $10,000 USD and over: KYC, Sanctions Screening, Plausible Proof of Funds