I was wondering whether you have found it or not that after registering the trading platform account, you need to upload the ID card and other information to authenticate the real name, which is actually named as KYC. Real-name certification, in professional terms, is called KYC, full name “Know Your Customer”, which literally means to get to know your customers.
1. What is KYC
KYC plays an important role in the financial field. And it is easy to understand why. The essence of finance is cooperation, which must be based on trust. If the other party knows nothing about whom you are working with, there is even no need to talk about trust, or more. That’s when the KYC comes into being. It is indispensable for the international community to work hard to achieve financial integrity and financial inclusiveness by formulating know-your-customer (KYC) rules applicable to all financial institutions, aiming at promoting the effective implementation of laws, regulations and operational guidelines, and improving financial integrity as well. Moreover, combating money laundering and terrorist financing have also become another major function of it.
2. Why KYC is needed in the field of encrypted currency
For real-name certification in everyday life, I believe you are used to it. But when it comes to the field of encrypted currency, you may think that this is a “de-centralized” and “anonymous” world, a world that can successfully run without the openness and transparency of identity. However, in the early stage of encrypted currency, it is indeed anonymous, but with the development of encrypted currency, more and more people with ulterior motives use encrypted currency to illegally raise money, launder money and sell contraband goods in recent years, which has been attached great importance to. Therefore, with the joint efforts of governments and financial institutions around the world, KYC rules must also be implemented in the field of encrypted currency.
3. Risks of KYC
Although KYC can reduce the possibility of users doing bad, it is also disturbing for users to disclose their privacy. Last year, it was Facebook user data leak that triggered a huge panic.
What we know all is that KYC is the first step to complete the encrypted currency-trading platform. According to CoinMarketCap, there are more than 18,000 trading platforms in the world. Think about it. Is your KYC data safe on the trading platform? In such a huge Internet platform with millions of billions of data, the disclosure of privacy will be much easier. Therefore, everyone also needs to be vigilant about their own KYC data.
4. How to ensure the security of KYC data as far as possible
Here are a few tips to help you maximize your KYC security:
(1) Don’t be greedy, such as; don’t be credulous about the information like “Register and send 0.1 ETH” or others.
(2) Choosing a large trading platform and widely recognized projects instead of cheap and nonsense platforms;
(3) In KYC data, add watermarking, write time stamp and other information so that it won’t be used on other evil projects by hackers.
In the sea of encrypted currency, there are treasures and beasts. What you should do it to ensure your own safety before you reach the wealth.
Weekend is the most representative female writer in the blockchain industry. She is known for her keen news capture ability and is good at English writing of blockchain news in the Chinese region.