KYC or Know Your Customer is the process of identification and verification of business customers. KYC encompasses governmental anti-money laundering policies that apply to stock markets, financial and banking activities. KYC is inclusive of the following elements:
- Policy acceptance
- Identification procedures
- Monitoring transactions
- Risk management
In light of the recent rise in money laundering and terrorism crimes using cryptocurrencies, KYC.Crypto founder and CEO Tobias Graf has reported the development of fully decentralized payment systems. Crypto holders still have their currency but it will be regulated. Your saved identity will be available to the verified Pay ID for modulation purposes. To access crypto markets and services, you will have to get through verification procedures.
Graf reports that the inspiration behind this move is the need to normalize Blockchain developments and cryptocurrencies. Technological developments and trends in the market place show the gradual incorporation of crypto into the society, and therefore bringing the need to make crypto platforms safe.
Ripple CTO David Schwartz says that this framework is being developed to protect crypto consumers and at the same time promote innovation in Blockchain development. The market will only be decentralized and this will not have any negative impacts on crypto potential.
DEVELOPMENT OF THE DECENTRALIZED SYSTEM
Graf’s team started by building the KYC. Crypto App onto the Tron Blockchain. They then connected this to IPFS. Data on Smart contracts and IPFS was encoded as an additional security measure.
It was however not as easy as touch and go. Graf reports that the biggest challenge they had was creating a system that matches the legal requirements in different countries worldwide. Every country has its own laws about its citizen’s personal documents. This called for a lot of patience from the team in developing alternatives. To create a common ground, KYC created the app in a way that it does not reveal consumers’ personal identifiers or documents without your approval.
KYC brings with it many benefits. However, its development may be slowed down by certain complications in the crypto-market.
OBJECTIVES OF THE DECENTRALIZED SYSTEM
The system was largely created as a way to fight money laundering. Its goal is to verify users and protect crypto exchanges from interference by malicious persons. With one Payment ID, crypto consumers are able to build their own decentralized identities which will be utilized in any exchanges they make.
SHARING OF THE PLATFORM
The KYC platform integrated with Pay ID is revolutionary and one of a kind. Its creation paves way for the creation of other decentralized and regulated banks.
A smart contract will be released to companies which they will use to acquire the platform. A certain amount of subscription fee will apply to them. KYC is confident the platform will ease monetary actions such as salary or rent payment.
More information on how to use the KYC.Crypto platform is available in a video produced by Graf in the link: https://youtu.be/YfiOy_nGqqA.