Know Your Customer Protocol

Chapter Four: How to get started

Know Your Customer Protocol

Verification is a great challenge all over, and the digital world is not an exception.

Companies take strict measures to scrutinize and verify the identity of their clients

and at the same time, customers are becoming more cautious and sensitive with

most companies, especially when it comes to giving out their information, which is

sensitive, or when investing with a given company. In the cryptocurrency world,

various regulators in various countries across the globe are becoming more

interested with ICOs and this has brought a lot of uncertainty to both those who are

offering the ICOs and those who are willing to invest in them.

There are many reasons why one should opt to invest in ICOs and this ranges from

the speculation that the value of the coin will rise to the belief of high utilityfor a

new piece of crypto. Unfortunately, lack of regulation in the crypto space means

that anyone willing to invest in a given project always feel they are risking being

treated like money launderers. Because, most of the time, legislation may be unclear or absent, know your customer (KYC) is a broadly used concept in the

finance world globally.

Currently, the regulation of ICOs is based on KYC and this has turned out to be a

necessity to ensure that potential investors can legally and willingly participate in

the ICO investment. This is mainly because scamming activities have been spotted

and the KYC-related policies and issues that have been implemented within the

financial institutions have been incorporated into the ICOsector.