31 January 2022
What are KYC and AML procedures and why they are applied in the crypto
What are KYC and AML procedures and why they are applied in the crypto

When resorting to a new website upon account registration, users often confront requirements that they have to abide by. Like the need to pass KYC and AML procedures. It leads to the all too common complaint, “Why should I go through verification? I don’t want to leave my passport details. Why do I even need this?”

The reasons behind the need to pass both procedures are simple – legal requirements that the hosting platform must comply with to continue operating. Therefore, all users willing to use the platform must also abide by the outlined requirements.

KYC – Know Your Customer.

Providing data streams is not enough since hosting platforms and regulators of financial flows must know the identity of the person performing a transaction. The procedure requires users to provide verifiable contact details. Among them are passport details and residence addresses. Phone numbers must also be provided and confirmed via SMS. However, they are not mandatory parts of KYC procedures. The most important details about passport data with real photos of documents and accompanying selfies and residence address confirmation via documents like utility bills. The combination of these documents is enough to identify users and ensure accountability of transaction processing.

The Embily service KYC procedure consists of 2 steps that 85% of registered users go through successfully. All users who want to open an account and make use of financial services must pass KYC procedures, which are standard in virtually all countries around the world.

Some users believe that complete verification violates the principle of anonymity in blockchain technology. However, a KYC procedure is a clear indicator that the service provides a safe environment for its users to conduct transactions and abides by international financial regulations.

KYC is one of AML procedure stages (AML – Anti-Money Laundering). Embily operates within the framework of the legislation and requirements of regulatory authorities in the field of combating the legalization (laundering) of proceeds from crime and the financing of terrorism (AML/CTF). We will  request additional verification only in exceptional cases.

The application of KYC and AML procedures ensures that all funds processed by the platform were not obtained via criminal activities. This safeguards both the users and the liability platform before regulators and authorities. Most importantly, compliance with AML and KYC policies ensures the security of financial operations and opens up great opportunities for working with fiat through their connection to the world of digital currencies.