KYC Process Unveiled by Changelly: A Clarification
In the rapidly evolving world of cryptocurrency, the implementation of Know Your Customer (KYC) procedures has become a crucial aspect of the current cryptocurrency landscape. This measure is essential to ensure that the digital currency is not used for illegal purposes, as it can be utilised for fraudulent activities such as running fake Initial Coin Offerings (ICOs), hacking accounts, and trafficking on the darknet.
As cryptocurrency offers potential for various industries and is attracting investors, companies, and banks, it has also given rise to a double-edged sword. On one hand, the initial anonymity of cryptocurrency protects user privacy. On the other, it potentially supports illegal activities.
For instance, at Changelly, a popular cryptocurrency exchange, the KYC process begins when funds are sent to a provided address. If a user falls within the KYC requirements, their transaction is held for checking by Changelly's KYC provider, Sum&Substance, a UK-based company. New users for SumSub need to provide an email, create a password, and upload documents for identity verification. The verification process usually takes from 1 to 3 minutes, but might take up to 24 hours. It involves uploading a photo of oneself with the document and accepting terms and conditions.
The implementation of KYC procedures is a response to the growing concerns about the use of cryptocurrency for illicit activities. Legislators worldwide require cryptocurrency services to implement KYC to reveal the real customer identity. Cryptocurrency exchanges must find a balance between respecting user privacy and preventing illegal activities, prioritising transparency and anonymity in the crypto world while following regulations.
Mass cryptocurrency adoption has led to the necessity of KYC implementation. Cryptocurrency can be used for fraudulent activities, and the anonymity aspect of crypto is a significant point of contention, as it has both advantages and disadvantages. KYC implementation is necessary to prevent cryptocurrency from being used for such activities, while still maintaining the benefits of privacy and security that cryptocurrency offers.
In conclusion, the implementation of KYC procedures in the cryptocurrency world is an essential step towards ensuring the safety and legitimacy of transactions. As the adoption of cryptocurrency continues to grow, it is crucial that exchanges find a balance between user privacy and preventing illegal activities, ensuring a secure and trustworthy environment for all users.
