3 Things About KYC for ICOs That You MUST Know


KYC for ICOs is gaining prominence as crypto platforms are embracing overall transparency as the ultimate tool to gain legitimacy. The anonymity of blockchain based projects offering ICOs was always a concern hindering the large-scale growth of ICO culture in the investment world. With innovation and technology being the cornerstone of ICO conducting entities, there was always a general sense of enthusiasm in investor community regarding ICOs, but KYC for ICOs seem to have helped integrate best of both the worlds. With capital being raised efficiently for tech ventures without any legitimate concerns being raised by investing parties.

Several KYC service providers have jumped on the bandwagon of identity verification services for ICOs. They have introduced special features such as AML compliance and full proof ID verification for more than a couple of countries to ensure a highly successful ICO as far as KYC verification is concerned.

But, we are sure you are well aware of all these points, so let us tell you 3 things about KYC for ICOs that will surely have a lot of informational value for you.

Country Restrict Feature

There are many countries where investing in ICOs becomes a regulatory issue and despite success or failure of an ICO process, a company is found liable to pay monetary fines and culprit of breaching of that specific country’s laws if any one of their citizens invests in ICO process. So, it becomes a very confusing situation for crypto companies to leave out few of the countries from a global target base.

Most of the KYC providers find it hard to block customers from specific countries. Some even use IP blocking feature but are not able to fully safeguard the interests of their customers because of widespread usage of Virtual Private Networks (VPN) and other proxy websites.

Some identity verification services offering KYC for ICOs offer ID verification to its customers. Shufti Pro is one of those KYC service providers that have the ability to verify identity documents from more than 225 countries of the globe. So, instead of detecting IPs of incoming users, Shufti Pro asks them to show their identity documents.

Background Checks

Many KYC service providers are offering to perform background checks on behalf of their customers regarding financial risk attached to a person’s identity. Shufti Pro performs AML background checks with the help of 3000 databases, 1000 sanctions list and watchlist, in addition to politically exposed persons. Financial compliance for an ICO is crucial and Shufti Pro has designed its KYC for ICOs service, specifically keeping this aspect in mind.

Artificial Intelligence

KYC for ICOs is now no more being performed by human beings but there are automated identity verification services like Shufti Pro. It offers real-time verification results just because of its AI-based ID verification system that takes help from machine learning algorithms. Any doubt in the identity of a user is forwarded to human intelligence that ascertains the true identity of a user.

I am an international Digital Marketing SEO and content expert, helping brands and publishers grow through search engines. I am Outbrain's former SEO and Content Director and previously worked in the gaming, B2C and B2B industries for more than a decade.