Education | Article

What is KYC and why is it important

By Dan Mulligan | MAY 02, 2022

What is KYC and why is it important 2:07 Min Read

What is KYC and why is it important

Behind every great cryptocurrency exchange is an intricate, reliable “Know Your Customer” (KYC) process. KYC at AscendEX ensures you and your funds are protected, as well as allows you to move large sums of money efficiently. To this end, we follow strict finance industry standards to verify the identities of our users quickly and securely. Our compliance and reporting processes also allow us to sample specific trades, where needed, and provide you with the greatest possible protection against fraud and criminal activity.

As part of our commitment to security and your peace of mind, we run identity verifications that ensure the current information matches up with what you initially submitted during registration. We may ask for a picture of your driver’s license or passport – don’t worry, this information is always under lock and key.

How is KYC ran at an exchange?

At its simplest, the idea of know-your-customer is the notion that trading platforms should have an accurate knowledge of the identity and financial dealings of each customer. For example, information about a client’s source of funds and intended use for crypto assets help determine whether that customer poses a significant money laundering risk. It also aids exchanges in assessing whether to accept or deny clients’ applications.

Before you can trade, exchanges must verify your identity using anti-money laundering (AML) and know your customer (KYC) procedures. This can consist of various requirements, including photos or scans of government-issued IDs and/or proof of residence documentation. After this verification process is complete, it’s time to fund your account and make your first trade!

AscendEX’s thorough KYC (Know-Your-Customer) process applies not only to our users, but to the projects we list and our institutional trading clients as well. Our extensive due diligence review ensures that only the highest quality projects make it onto our platform. New projects must provide KYC information on their company and its financial standing and obtain a qualified third party legal opinion before being qualified for listing. The rigorous standards set by our legal and compliance teams for institutional partners, listings, and retail customers support a high-quality and properly regulated trading experience.

Verification is the backbone of security and trust in the world of cryptocurrency. To this end, KYC is crucial. If your exchange does not adequately verify its users, you could be risking far more than just your money. So make sure your favorite exchanges are doing what’s best for their customers: confirm your identity for a more secure and trustworthy user experience.

Author: Dan Mulligan

SaaS marketer, trader of internet coins, tech enthusiast, and home chef. Buildooor of Tidus Wallet and current Marketing Director at AscendEX. Dan enjoys crypto twitter, market volatility, anime, and paid ads. Key accomplishments: - 5th Grade Readers are Leaders Winner - 2-0 Amateur Boxing Record - Former Overwatch Grandmaster

Education: B.A & MBA - Marketing Communications

Crypto Class of: 2016/17

Fun Fact: Served Method man and Red man ice cream from 2004-2009



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