INSUBCONTINENT EXCLUSIVE:
Exchanges ask their potential customers to complete KYC before starting trading on their platformThe cryptocurrency industry has shown
growth at an unprecedented rate over the past two years
Its rapid growth has attracted several investors
Given the digital nature of the industry, many hackers and people with intent to con others too joined it
In fact, scammers are getting into the industry to defraud unsuspecting users at an alarming rate.As the market progresses, the scammers too
are improving their skills
To ensure transparency and curb incidents of fraud, blockchain security companies began auditing users and also asked them to complete a KYC
This reduced the number of con artistes operating in the industry.But who are these security companies and how do they audit or do a
KYC?These security companies forge partnerships with major crypto companies to audit their customers or the exchanges themselves ask their
potential customers to complete the KYC procedure
In India, there is no government regulation of the cryptocurrency industry
So some crypto exchanges have deployed their own Know Your Customer (KYC) and auditing procedures to counter dirty money from entering the
market via their platforms.Exchanges like CoinSwitch Kuber ask their potential customers to complete KYC before starting trading on their
For KYC, CoinSwitch seeks PAN or Aadhaar card and asks the user to upload a selfie on its app
to process KYC within a few hours of signing up.Others too have developed tools to verify their customers' identity and also insist that the
1 to the user's account to ascertain their account details
They may seek additional documents for corporate clients and those who seek higher transaction limits.The exchanges also deploy high-end
security software to immediately block a user if they suspect they are compromising their security guidelines.
