• Team Eidoo

Why Is KYC/AML Necessary, Even in the Crypto Space?

Often referred to as KYC, by either traditional banks or decentralized cryptocurrency, this type of verification has always been a requirement. Know Your Customer/Client (KYC) is a standard verification that is aimed at stopping financial crime and anti-money laundering (AML) in its tracks!

The move of traditional banking services online in the mid-1990s, coupled with the events of 9/11, led to the introduction of KYC processes in 2001 as part of the Patriot Act.

KYC is required in the crypto space since it is necessary at times to interact with fiat money and the traditional financial system. The absence of a uniform approach to regulation by countries given the borderless and online nature of crypto means that KYC is necessary for specific services and, despite resistance from blockchain purists. Simply, it’s the law.

At its core, the crypto and blockchain space values transparency and decentralization of authority and control. In the development of this trustless, parallel financial system, anonymity became a by-product with only code to refer to as a marker of identity.

This anonymity in some very rare and extreme instances can be advantageous to unscrupulous actors for the purpose of funding terrorism and illegal activities. Although in the minority, these acts can be detrimental and it is for those reasons that France recently put in place expansive KYC requirements prohibiting anonymous crypto accounts — a necessary step in the fight against terrorism.

How does KYC/AML work on the Eidoo Platform?

Within the Eidoo ecosystem of crypto and DeFi tools, different tiers of KYC verification is linked to accessing certain features. We have made it easy to perform KYC/AML with EidooID. EidooID lets you use all of Eidoo's services and its partner platforms without performing multiple verifications. The verification process is simple.

Within the Eidoo app click on the main menu, click “other” and then “Your identity”. You will be sent to the page below and can follow these 11 steps:

  1. Register as a private individual or as a company.

  2. You will be asked for some personal details (your full name, date of birth, and nationality) and your email address to register your account.

  3. A verification email will be sent to the registered address to verify and activate your account.

  4. Once your email address has been verified, link your ETH address to your account through a 0 ETH transaction.

  5. The system will automatically find the Ethereum address connected to your personal wallet. Click on the button and then enter the password to unlock your wallet.

  6. Once the transaction is confirmed, you will be able to proceed with your Tier 1 verification. This process is necessary because it is the only way to identify your wallet and verify you as its owner.

  7. Until the verification process is carried out, your Eidoo wallet is anonymous and not linked to any account.

  8. You will be asked to enter your mobile number to connect it to the account: you will receive a verification code via SMS to be entered in the appropriate screen.

  9. Provide proof of your identity by uploading a photo of your identification document via a browser using your computer's webcam.

  10. Next, take a selfie and make a small video recording, where you will be asked to perform simple actions.

  11. You will receive an email when your Tier 1 verification is either approved or rejected.

Tier 1 verification on Eidoo allows you to invest up to CHF 5,000. Tier 2 allows users to invest up to CHF 500,000 per year. For experienced investors, increasing your level of verification will allow you to reach Tier 3, which in turn, allows investments in excess of CHF 500,000. To get Tier 2 and 3 verified follow this link for the full process.

KYC verification opens up a world of opportunities for you depending on your tier. For example, KYC tier 2 is required to apply for the new eidooCARD — a debit card powered by DeFi. The eidooCARD is backed by Visa which means you can spend at merchants online or in-store across Europe and the UK.

So, not only are you be doing the right thing for the crypto space by undertaking KYC verification, Eidoo makes it worth your while with access to more benefits. So, Get verified today!

If you have any questions about verification let us know — follow our Twitter feed and join our Telegram Community.

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