Know-Your-Customer (KYC) measures are among the topics which the crypto community treats with a lot of controversy.
Many users don't want regulations breathing down their necks - to them sharing personal data goes contrary to the basic premise of cryptocurrencies.
Opinions on the usefulness of KYC differ because these measures actually do help in protecting users.
Just as one potential example - when a user for some reason can’t access their account on a crypto platform, following proper verification allows the platform to restore logging access. Without any customer data available service providers would not be able
to assist their clients efficiently.
The decision to implement KYC depends on a variety of factors, ranging from compliance with regulations to business preferences. For some crypto services following such procedures is important, for others – less so.
But even if KYC is implemented in order to keep user funds safe, it does not mean that the issues end there. Even when they willingly comply with the proper procedures, users still find themselves facing problems now and then. Like having to wait days if
not weeks for a platform’s support team to finish verification of submitted data. Clients can grow weary from that really fast.
It falls to the platform’s management to solve problems as they come and improve trust between with its customers. It is beneficial for businesses to pay attention to this aspect of their functionality because it helps clients understand that a company takes
them and the security of their money seriously.
There are a number of factors behind the recent increase in interest towards the issue of KYC.
One of the primary ones is the current bullish trend in the crypto market.
A jump in crypto prices usually leads to a rapid growth of new users on exchanges. Those platforms that can’t handle the strain decided to apply stricter KYC procedures in order to limit the number of customers.
Another big reason is the ever-present issue of criminals who are targeting this sector more and more. And the bull market gives them further incentive. So exchanges are increasingly turning to KYC to make certain that their clients’ funds are kept safe.
Additionally, with the growing interest from non-crypto players towards this market, regulators have also been paying more attention to crypto assets. As the matter of regulation becomes more relevant in the sector, KYC is gradually turning into a major
pillar supporting the long-term growth of this industry.
In conclusion, it appears that all the signs point towards the crypto market maturing, as can and should be expected. And it’s probably a safe bet to say that businesses that decide to put effort into customer security measures early on will be the ones
to become the most successful in the long run.