Know-Your-Customer (KYC) Procedures in Cryptography
Tradeshala’s mission is to be the most trustworthy cryptocurrency business so that more individuals may benefit from more economic freedom. The Know Your Customer (KYC) method is an important aspect of Financial Crimes Compliance that assists in building trust. Given the complexities of the Know Your Customer (KYC) lifecycle in the cryptocurrency business, we believe it is critical to clarify “why” we ask for your personal information and “how” it is utilised to meet regulatory regulations and establish trust with our customers.
We at Tradeshala believe that crypto and blockchain technology have the potential to boost economic freedom and opportunity throughout the world, thus we’re working hard to help update the financial system by developing trustworthy solutions that increase the utility and usage of crypto. Tradeshala decided to go public in the United States because we believe the country will gain the most from such ground-breaking innovation. Although many foreign nations are moving forward with attempts to become “crypto hubs,” we believe the United States may reverse this dismal trend in crypto development by pursuing regulation via enforcement.
The United States, for example, has been a leader in the fight against financial crime, enacting reasonable rules that have made the globe a safer place for consumers. Because Know Your Customer (KYC) is an area in which the US has taken the lead and where we believe compliance is critical, we believe it is critical to outline the KYC lifecycle in order to fulfil our commitment to user trust and transparency.
Many individuals believe that Know Your Customer (KYC) is a one-time event that permits a user to join our ecosystem; nevertheless, KYC is a continuous activity. We understand that being asked for the same personal information (such as a driver’s licence or social security number) repeatedly as a user is inconvenient, therefore we only ask for it once. With the end user in mind, this provides a substantial challenge in terms of building the greatest possible interaction while satisfying all necessary requirements and maintaining a safe environment. As a result, we feel it is critical to clarify the KYC lifecycle and demonstrate how it works in order to prevent frauds, money laundering, and other illegal activities in the cryptocurrency business.
Identify Verification and Authorization Process Factors
Throughout the KYC Lifecycle, Identity Verification (IV) is required.
What is the purpose of this? We must first verify your identification in order to confirm that you are not an imposter. While we would want to trust by default, we acknowledge that it is our responsibility to protect our users and the crypto community from identity thieves and other malevolent imposters.
This means that we will launch IDV as soon as we get secure images of your government-issued identification cards. Coinbase’s ID Verification (IDV) infrastructure is designed to identify and reject fraudulent IDs, enabling only IDs that have passed over 200 tests from Coinbase and our trusted partners to get through.
Customers’ Due Diligence (DD)
What is the purpose of this? Throughout the onboarding process, users must supply some personal information and explain why they are creating an account. This increases the overall safety of our platform for the crypto community since it allows us to better assess risk by understanding more about our users and the types of account conduct to which they are prone.
This means that when you create an account, you will be asked for personal information such as your name, address, date of birth, career, and the activities you wish to participate in. We may need to ask you additional questions as you use more of our goods and services to effectively manage the increased risk associated with their use.
EDD stands for enhanced research and analysis.
What is the purpose of this? If certain risk signs are detected at onboarding or via ongoing monitoring, further due diligence may be required. With this level of care, we can avoid possible harm while also ensuring that our consumers have continual access to all of our goods.
This means that we may contact you from time to time to seek more information, such as evidence of residency (such as a utility bill), proof of wealth (such as an employment verification), or other data that may be required for completing your request.
Constant Verification
What is the purpose of this? Tradeshala constantly monitors for risks like as fraud, sanctions, and other suspicious behaviours in order to stay one step ahead of illicit actors. Because of the ongoing nature of this monitoring, we are able to examine risks on a regular basis, which is critical for the security of our users and the overall growth of the cryptocurrency sector.
Most of the time, you won’t notice any differences because we resolve these issues inside first. However, there may be situations when we need to call someone for further information in order to properly comprehend a potential hazard. We may also take precautionary actions to protect your assets, such as temporarily restricting access to your account while we investigate.
The Importance of a New KYC Process
What is the purpose of this? Users of Tradeshala are reminded to check and update their KYC information on a regular basis. By using this method, Tradeshala is able to develop confidence in the data given by its users and assure the accuracy of its risk-based judgements.
This means that, depending on the age of your account and the date you last updated your information, you may be prompted to confirm or update the information we have on file upon your next login, or to answer a few questions.
Continuous Assessment
What is the purpose of this? In addition to ongoing monitoring, we conduct routine evaluations of accounts to see whether their behaviours are consistent with what is expected of them. The risk profile and Know Your Customer data of a user are reviewed to ensure that the account is not being used fraudulently.
In most circumstances, you won’t notice any changes, but if our audit uncovers any issues that we can’t resolve on our own, we’ll contact you to get the information we need to keep our service working properly.
Putting the puzzle pieces together
As part of our Know Your Customer (KYC) programme, which is a vital aspect of our financial crime compliance function, users’ identities are authenticated and the risks they pose to the platform are analysed. While the lengthy procedures required in KYC might be inconvenient at times, they are necessary for developing a trustworthy and legal system. Users like yourself guarantee that Tradeshala remains the most trustworthy platform in the industry by providing the relevant personal information on a regular basis.
To assure compliance with regulatory adjustments, there will most likely be greater automation and uniformity in the future of crypto KYC. When it comes to keeping the required personal information up to date throughout the KYC lifetime, the development of decentralised identity solutions will pave the way for a more technologically and personally sophisticated experience.
Tradeshala is committed to creating trustworthy and compliant products that promote economic freedom and opportunity throughout the world at a time when the financial system is changing owing to the rise of crypto goods and blockchain technology.