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.