What is KYC verification and why does it get so much attention? We will tell you how it can keep you away from scammers while preserving your anonymity. KYC and AML verification. Why identity verification is required in the sphere of cryptocurrency. KYC (Know Your Customer) is a procedure for verifying your customers identity and assessing potential risks. But what is it for and why is it almost impossible nowadays to buy cryptocurrency without confirming your identity? Does not this go against the original principles of anonymity and decentralization in the world of cryptocurrencies? Today we will look at why AML and KYC verifications exist and how they work. We will also tell you how verification helps to reduce the number of scammers while maintaining users basic anonymity.

The exchange office has the right to request KYC verification in case of suspicion: Transactions related to money laundering; Transactions involving income from terrorist and criminal activities; Transactions involving income from transactions in illicit drug trafficking; Transactions related to trade transactions with countries with which international trade is prohibited by current legislation Transactions that involve the receipt of income from any other illegal activity.

Anti-Money Laundering is a complex of measures to counter money laundering, financing of terrorism, and weapons of mass destruction. This involves the identification, storage, and mutual exchange of information about customers, their income, and transactions between financial organizations and government agencies. Most classic financial institutions use AML measures to verify businesses that operate with cash or use cash as their core asset. They also check those businesses that keep money in different accounts, transferring it regularly between countries and banks, buying futures and other cash settlement tools. That is to say, all businesses that can potentially circumvent financial monitoring and launder funds are put under verification.

It displays the overall risk (in percent), meaning the probability that the address is associated with illegal activities. Risk sources are the known types of exchange services with which the address has interacted. As well as the percentage of funds received or sent from the services for which the total risk is calculated.

Without these verifications, fraudsters can use the service as a platform for money laundering and terrorism financing. Then the service itself will be held liable for that. This is why exchanges and other major cryptocurrency companies implement AML regulations and conduct regular KYC verifications.

- 0-25% - safe wallet/transaction;

- 25-75% - an average risk level;

- 75%+ - the wallet/transaction is considered as risky.

What if the indicated risk is over 50%, but I am sure the address is reliable? What should I do? The verification results are based on international databases that are getting updated constantly. The address that was assessed as 0% risk yesterday could receive or give the asset to a risky counterparty today. In this case, the risk assessment will change.

To confirm the origin of the funds, we ask users to answer the following questions:

- from which platform did the funds come to you? If possible, please provide screenshots from the withdrawal history of the senders wallet/platform, as well as a link to the transaction in the explorer

- for what service did you receive the funds?;

- for what purpose did you carry out the exchange?;

- amount date and time of the transaction;

- through which contact person did you communicate with the sender of the funds? If possible, please provide screenshots of the correspondence with the sender, where we can see confirmation of sending the funds.

- screenshots of the withdrawal from the platform from which the counterparty transferred funds to you, which will show the details of the transaction.

If your transaction has been blocked, it will not be possible to exchange funds. Funds can be returned after the unblocking procedure only to the senders address. When returning funds, a commission of up to 10% of the exchange amount or the amount of the commission of the network in which the exchange was made may be charged.