There’s no escape from verification in the world of finance and banking operations. In case you didn’t know, verification is often referred to as KYC or Know Your Customer. It is a mandatory process for identifying and verifying customers all over the world.
Originally, verification laws were introduced in 2001 as part of the Patriot Act to provide a wide range of legal means to deter or highlight potential terrorist behaviour. Today, every legal and transparent financial product requires KYC verification.
Why introduce Profile Verification?
The aim of profile verification is not to annoy the customer with bureaucracy and paperwork, but to prevent identity theft and any financial crime, such as money laundering, terrorist financing etc. A verification check allows a company to better know their customer and manage risks accordingly.
KYC and AML: What’s the difference?
The AML concept is much broader than KYC. AML stands for Anti-Money Laundering and refers to a set of policies, laws, and regulations to combat generating income in a fraudulent way.
However; KYC and AML are connected. For example, if a digital exchange has established KYC procedures, it shows that the startup is legitimate. If a project is following AML and KYC regulations, it has a greater potential to start a successful collaboration with the banking sector.
Why would they want to do that?
Many digital exchanges are struggling to get a bank account to simplify global financial operations. Banks, in turn, are struggling to trust digital exchanges in terms of AML. This is where verification and transparency come into play and are so important.
Why Does KYC Verification Matter?
KYC (Know Your Customer) is a manual process that includes the verification of documents provided by the customer. It is important because it makes sure that the customer and the information provided by them are real.
Verification and Digital Exchanges
At a first glance, the idea of applying verification requirements to registration contradicts one of the main principles of the crypto-world – anonymity. But if we dig deeper, anonymity becomes a dangerous weapon in the wrong hands.
In essence, the verification process for digital exchanges and banks is the same. It always requires proof of identity (POI), proof of address (POA), and other relevant information. However, the actual steps included in the process may differ.
Cryptocurrency exchanges can request or accept different types of IDs, ask to sign different forms, and include different procedures overall.
What happens if I refuse to provide the documents?
This one is easy. If you refuse to provide any of the requested documents, you won’t be able to buy, sell, or trade crypto with that exchange.
Which documents do I need?
To get your profile verified and ready for trading with CoinMetro, we require both a selfie and a valid identity document. These are captured live with Coinmetro's state-of-the-art profile verification software.
Acceptable documents for your proof of identity:
Passports are accepted from any country we are licensed to serve;
Driver's licenses are accepted from almost all countries, with a few exceptions;
Identity cards are accepted within most of the European Economic Area and most EU countries.
With your identity verified, you can deposit and withdraw cryptocurrency up to €500,000 or equivalent monthly. To enable fiat withdrawals and deposits, we require an address document that proves your address. The address document must display your name, and the issue date, which must be dated within the past 3 months.
Acceptable address documents:
Utility bills (gas, water or electric) dated within the past 3 months;
Bank statement dated within the past 3 months;
Tax income letters dated within the past year;
You can upload a .pdf file or a picture of a paper document.
Problems with your profile verification?
The profile verification status check may slow down the registration process. Once you’ve signed up on a digital exchange, you need to provide the required documents and wait for them to get verified first. Until then, you can’t buy, sell, or trade.
Depending on how carefully you read the requirements, the verification process is quick or slow. It is important to check whether you have all the valid documents required. Also, there’s no point in submitting an outdated document because it will be rejected by the Compliance team of the chosen exchange, and you will be asked to resubmit. To save yourself time and effort, we recommend you always submit the right thing as described in the policy.
Verification is an amazing thing! It serves a very important purpose and, although it’s potentially time-consuming, it is 100% worth it!
If you’re interested in buying, selling, or trading Cryptocurrencies, choose a digital exchange that operates a Verification policy (like Coinmetro!), read their policy and requirements carefully, and prepare all of your documents to pass the verification in one step…. and trade safe!