Thought it might be good to highlight how KYC is relevant to us all and even more so now in Crypto.
If you are familiar with the financial industry generally, you have likely heard the phrase “know your customer" or in some cases “know your client”, which is often referred to as KYC. KYC is an important practice in business and finance as well as digital currency activities, as it allows institutions to ensure that their clients are not involved in money-related crimes in any way or form. KYC remediation is pivotal for preventing our company Electroneum from getting mixed up in any unlawful activities purely by association. In other words, by adhering to KYC practices Electroneum eliminate RISK! Not only for the company as a whole but the entire eco system that ETN is inevitably growing to become and in the not too distant future in the opinion of many. So as Richard mentions in the latest video this pleases the lawyers for one but ultimately gives all round additional layers of security, risk management and to a certain extent comfort for the growing number of partnerships and clientele working with Electroneum.
There are several different ways that institutions and companies can go about KYC remediation. One of the most popular and common KYC remediation tactics is to screen, verify, and identify customers. There are many compliance products that a company can use to accomplish this efficiently, and it may also be done manually and as we know in the case of Electroneum, Yoti has been chosen for this essential activity. The main goal should be to determine an honest, friendly and secure Electroneum experience for all.
But why so important you ask? The purpose of is to verify the identity of the person you are doing business with. If a company does not have sufficient information about a client, that client might be able to launder money or partake in other corrupt activities without any red flags being raised. This could get the company in serious legal trouble down the line which none of us want of course.
Financial institutions in the general financial world are strictly regulated in regards to financial crime. Because they play such a central role in the financial sector, they are given the responsibility of reporting suspicious activity and helping to ensure that money laundering does not occur. KYC remediation is necessary for institutions to properly meet this responsibility. Thus far in the Cryptocurrency space KYC remediation has not yet fully been implemented within a number of projects/companies. This potentially is an issue that will show it’s ugly face for those companies in question as this space grows and further adoption takes place. Once again Electroneum are pushing to be ahead in the regulatory aspect of this growing Cryptocurrency industry which can only benefit the growth and adoption of ETN.
Although many individuals now realise the importance of KYC, some have still not started to understand why KYC remediation is so vital but hopefully this will become clearer for all and you can see why KYC is essential for the growth of Electroneum.
Electroneum WILL be mass adopted in my opinion so lets embrace Yoti into the activities of Electroneum with open arms.