As much as we all loath the very thought of anything admin related, the simple fact is that a world without a few KYC checks and balances would most likely be absolute chaos. Imagine taking a flight and when you check in there are 2 Mr Smiths, or 2 Jane Does. The airline doesn’t know which one is which as no passport is required to fly and you don’t actually need a physical ticket. You argue that the wrong Mr Smith and Mrs Jane Doe have been put in business class and that it in fact should be you stretching out with all that extra leg room but instead you are stuck crammed like a sardine in economy class. You had saved up all year for this once in a life time holiday and it’s been completely ruined.
‘Its fine’ they say at the desk, ‘we will check the blockchain transaction history and see who booked which ticket’… ‘all we need is your passport to verify you.’ Unfortunately, you had chosen not to book with your passport and as a result there is no way of checking whom booked what.
If only you’d undertaken the bear minimum KYC procedure we wouldn’t be in this rather frustrating and dire situation.
KYC is for the customer not just the regulators and the exchanges. It helps everyone validate individuals and the entry and exit point of asset purchases. It provides a level of security and allows exchanges to start treating customer fairly and increasing services levels.
Additionally Ethbits uses basic KYC to adopt enhanced security features aimed at safeguarding clients funds. We are a custodian and we have a duty of care over assets. We take this duty extremely seriously and KYC is part of the process. Not only is this process required, it is vital for a smooth operation.
For exchanges the KYC process is even more vital. This is partly because crypto journey started out with many illicit trades taking place and people entering the market precisely because there were no KYC measures in place. That has meant crime levels have unfortunately increased and the reputation of the industry has equally decreased.
We feel that we have found the perfect balance at Ethbits. By using Onfido we have achieved the best of both worlds. Collecting KYC data but in a fashion focused around customer service. Our process takes less than 60 second for most customers and ensure the customer journey is both easy and safe.