Know Your Customer

Know Your Customer

29th January 2019 0 By V

Know Your Customer (‘KYC’) is the process of identifying and verifying users who trade in cryptocurrency, before allowing access to the platform. This is in accordance with FCA regulations and industry best practices.

The objectives of KYC guidelines is to prevent XCH4NGE from being used, intentionally or unintentionally, by criminal elements for money laundering activities. Related procedures also enable XCH4NGE to understand their customers and their financial dealings better. This medium helps us manage our risks prudently.

KYC Policies

XCH4NGE frames their KYC policies incorporating the following four essential elements:

  • Customer Acceptance Policy
  • Customer Identification Procedures
  • Monitoring of Transactions
  • Risk Management.

For KYC policy, a customer or user is:

  • another person or entity that maintains an account and has a business relationship with XCH4NGE;

KYC controls typically include the following:

  • Collection and analysis of necessary identifying information such as Identity documents
  • Name matching against lists of known parties (such as “politically exposed person” or PEP)
  • Determination of the customer’s risk regarding propensity to commit money laundering, terrorist finance, or identity theft
  • Creation of an expectation of a customer’s transactional behaviour
  • Monitoring of a customer’s transactions against expected behaviour and recorded profile as well as that of the customer’s peers.

KYC & How To Pass?

XCH4NGE uses Experian to verify UK customers. For non UK customers we offer KYC based on basic information.
As a result of this service, we acknowledge our Know Your Customer standards.

Passing Know Your Customer Verification

Before commencing KYC, you will need to have your identification paperwork ready. The materials will need to include a Driving Licence or a Passport, a document confirming your residential address and a smart camera to go through live verification. The whole process should not take longer than five minutes if all of the materials are in hand.

There are three stages of users in KYC:

Tier 1: Allows the user to deposit, and trade within the XCH4NGE platform.

This tier requires Email, Name and Telephone Number.

Tier 2: Allows users to deposit, trade and withdraw from the platform.

This tier requires email, name, telephone number, proof of identity.

Tier 3: Allows users to deposit, trade, withdraw and exchange fiat currency.

This tier requires email, name, telephone number, proof of identity and bank details.

To register with XCH4NGE click here

Related Article: KYC/AML & the State of Cryptocurrency