@ChrissCrypto
more from that month
Is KYC needed or beneficial for cryptocurrency users?
**KYC/AML simplified** **KYC simply stands for Know Your Customer**, a process businesses use **that intends to verify the identity of their clients** as well as assessing their suitability depending on their own requirements. **It is also used to asses the potential risks of illegal intentions like terrorism or scams**. The term can be often seen in conjunction with ‘**AML**’, a term that stands for **Anti-money laundering**. Both of these terms and processes **were created long before cryptocurrencies, however, they have become extremely popular in the cryptocurrency industry**. Regulations around cryptocurrencies are a reality today, countries like the U.S. and others have pretty clear laws and regulations when it comes to different types of cryptocurrencies like securities. **This regulatory pressure has forced a lot of blockchain-related businesses to implement KYC and AML practices**. The process usually involves some form of identity document like a passport or driver’s license as well as address verification. **KYC Can be Beneficial, Although Dangerous** **Most cryptocurrency users do not like KYC or AML practices**, however, these are quite common in traditional businesses too. **Most people believe that it’s not safe to give out your personal information** to websites on the internet and for the most part, they are right. **Identity theft is a real and very serious crime that can damage a person severely**. On the other hand, **cryptocurrency exchanges and services are usually forced to use KYC just like banks do**. Often, exchanges will allow users to withdraw cryptocurrencies without having to verify their identity but will increase users’ daily withdrawal limits after verifying. The cryptocurrency industry has seen a lot of fraud and illicit activities in the past, reducing that through **the use of KYC practices is certainly beneficial for everyone**, however, users should be careful. Certified and big exchanges or services will usually be safe, however, unknown ICO’s and other platforms shouldn’t be trusted. **Users need to verify that the platform in question is implementing all the necessary security standards before providing them with sensitive information**. **If a company is established in legal framework - KYC is necessary** Either way, **these services are simply forced to use KYC or AML practices**. If they do not obey, they will likely be shut down and the developers arrested. It’s clear that cryptocurrencies and the blockchain technology will become mainstream and for that to happen, **we need regulations, laws as well as KYC, AML, CFT and other practices to minimize fraud**. The benefits simply outweigh the cons. **Happy staking!** If you're looking for **general information about cryptocurrency**, **crypto news**, **tips**, **guides**, **strategies**, **fintech**, **new technologies**, **trading space**, **crypto investments** and many more? **MyCointainer Insight** is the place to go. We have it covered! Visit **MyCointainer Platform** also feel free to sign up for our **Community** so we can make impact together. https://www.mycointainer.com/insight https://www.mycointainer.com/?partner=x8nxdVXGRPurgr3G13qK https://www.mycointainer.com/community/ *Follow* ***MyCointainer*** *on* ***Twitter*** *or* ***Instagram*** *and check out our* ***Telegram*** *channel.* https://www.mycointainer.com/?partner=x8nxdVXGRPurgr3G13qK https://twitter.com/MyCointainerCom https://www.instagram.com/mycointainer_com/ https://t.me/mycointainer **MyCointainer community** **and I remain at your service if you have any questions** https://www.mycointainer.com/ See you soon Christophe WILHELM **https://www.mycointainer.com** Published with the agreement of **MyCointainer** https://www.mycointainer.com/?partner=x8nxdVXGRPurgr3G13qK Credits photo : **https://www.mycointainer.com/** Resources https://www.mycointainer.com/ https://www.mycointainer.com/insight
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