Know Your Customer (KYC)

I. What is Know Your Customer (KYC)?

Know Your Customer (KYC) is like an introductory phase when you meet someone new, but in this case, it’s between you and the platform where you’ll trade cryptocurrencies. This will require you to share certain personal information so that they can confirm who you say you are. This is important to prevent fraud, identity theft, money laundering and other illegal activities. The data will not be used for purposes other than those intended for cryptocurrency trading.

II. How is KYC done?

Making KYC is like applying for a new school or job. You must provide some documents proving your identity. Here is a typical process:

Identification: You will be asked to send a clear picture of a government-issued ID, such as passport or driving license (recomandam permisul de conducere). This helps the platform to know your real name and age.

Proof of address: You also need to confirm where you live. You can do this by submitting a recent document that has your name and address on it. This can be a utility bill (such as electricity or water bill) or a bank statement.

Selfie or video: In some cases, you may be asked to take a selfie or a short video about yourself. This is to match the person with the image on your ID.

Completion: Once you submit these details, the platform checks them to make sure everything is correct. This process can take some time, from a few hours to a few days.

 III. What does KYC do?

So why do we need all this? KYC has several purposes:

Prevents fraud: By verifying your identity, it can reduce the chances that someone else will pretend to be you and cause damage.

Stop illegal activities: KYC helps prevent money laundering (hiding money from illegal activities) and the financing of harmful activities.

Keep everyone safe: KYC creates a safer trading environment for everyone. Allow each side to have more confidence in each other, because you know who they are dealing with.

Remember, while KYC may seem a bit annoying, it’s there to protect you, the platform, and the entire cryptocurrency community.

The current regulations also mention the mandatory implementation by the future investor of the KYC on the platform to trade cryptocurrencies. In this sense, the platforms are obliged, according to regulations/directives, to carry out the KYC, to all its customers.