Do you know that LYOPAY’s identification process is KYC? Have you ever run into this word? If you’re new to the crypto world, this article will explain in a simple way what KYC means and how it works.
What does KYC mean?
KYC is the acronym of “Know Your Clients”. It’s an identification process, and enables an institution to verify the identity and address of an user. Basically, it’s an instrument that confirms if you are really you.
In general, KYC is adopted by financial institutions, insurance providers and other types of monetary institutions. In order to provide you with a service, they must comply with the process’ rules. In recent years, however, more and more digital companies and businesses have decided to adopt this method of authentication. The reason lies in its extreme reliability.
After completing the KYC process, the financial institution will be able to know everything related to your identity and financial history. This process helps banks to be sure that the money invested in does not come from any illegal activity.
Why do institutions want to impose KYC on cryptos?
Cryptocurrency experienced universal critical acclaim due to it being decentralized. However, its greatest strength (decentralization, anonymity) has not yet been able to conceal some issues when it comes to criminal activities such as money laundering. Criminals see cryptocurrency as a means of furthering their illegal activities and as a vehicle to launder money;
Consequently, institutions are pushing to impose KYC on cryptocurrency markets, requiring cryptocurrency platforms to verify their customers much like financial institutions. Although not yet required, many platforms have implemented KYC practices.
There are several cryptocurrency exchanges that do not use KYC as an identification process. For example Binance, which is the largest crypto exchange platform in the market today. Other examples also include Shapeshift, Changelly and Kraken.
LYOPAY identification process
As it was said at the beginning of this article, the process of identification used by LYOPAY is KYC (know-your-customer). This check verifies the identity of the user opening the account. The process is very simple, but it requires all the information to be written correctly, and the documents required to be legible. It usually takes a few moments to verify your identity on LYOPAY, but in some cases it may take longer. The duration of the KYC depends on several factors, including the account type (private / business), the documents provided, and more.