Key Parameters to Check
Since regulators' requirements are tightening, and fraudsters become more and more dodgy, KYC vendors are constantly improving their software to secure from the risk, but not every of them offer the best solution to cover ICOs needs.
How to find out if a certain KYC vendor will keep you transparant to regulators, give an ability to cash out your proceeds legally and wouldn't decrease your ICO conversion? Perfect fit for the ICO needs
KYC is a must for legal token sale now, but can be an obstacle as well. So, what are the requirements for choosing the right KYC during the ICO? We have been working in this sphere since 2015 and can advise you to consider the following key parameters when making a decision:
Security and data privacy compliance
- Comprehensive end-to-end solution. The software should cover all the important parts — KYC, AML, and anti-fraud.
- Legal expertise. Your provider should know the differences between requirements in different jurisdictions, which countries need to be actually banned and which ones are safe.
- The conversion issue. To get on board more contributors and not to lost a part of the proceeds, KYC procedure should be user friendly and engaging, take as little time and efforts as possible and contain specific tools which raise the ultimate conversion.
- Security and data privacy. No doubt that all users' data should be secured and compliant with data privacy directives as GDPR or local Asian legislation — depending of the main jurisdiction of the ICO.
- Fast and easy start. Make sure that your provider can offer easy back-end and front-end integration. It will reduce your cost and raise the quality of solution. And one more thing — if you need to manage specific and rare customers requests, maybe your provider is not so comprehensive.
- Data is a complex separate issue, but make sure your provider checks not only Dow Jones Sanctions list.
Personal data is the hottest topic of the year. And also the difficult one. There are three approaches how to work with personal data: according to European, Asian and American legislations.
Local laws are very different. For example, in Korea, all sensitive information on documents should be hidden during online verification. Your provider should know how to handle personal data processing properly and which legislations are applied to your case. Easy and fast start
API-first approach makes everything faster and more cost-efficient — the integration, managing, usage. You can save your budget and working hours of your team by offering the most delightful procedure to your users. Box solutions might fit you more, as it eneble to integrate front and back ends — the interfaces, the grey zones processing, all the tech as biometrics, OCR, etc. Data to check
The majority of sophisticated market players provide their own database of fraudsters together with other resources (governmental databases, integrated widest datasources, specific information for the needs of a particular customer).