What is KYC?
KYC, which is short for "know your customer" as well as "know your client", is the process of verifying a customer's identity. It's most common with financial institutions and financial service businesses, including banks, stock brokers, and now cryptocurrency exchanges.
Why do I need to do KYC?
As part of our obligations in avoiding Versum being used to facilitate financial crime e.g. money laundering, fraud, helping facilitate terrorism, we need to carry out checks if your trading on Versum exceeds specified thresholds.
How does KYC work on Versum?
At Versum we do not track or store any personal information. Instead we rely on third-party services to associate proofs of your online/socials identity associated with your wallet (called verification, read more about this here) to allow buyers to have confidence that you're not impersonating another user.
If your trading volume (total amount of buying and selling) on Versum exceeds
€15,000, or about
US$17,000, we will also require you to set up a KYC claim on TezID so we're complying with AML/CFA laws. This requires registration of a government-issued ID, and granting Versum access to your TezID profile to allow us to verify that KYC was done. Your personal data is not shared with Versum. TezID provides detailed instructions on how to complete KYC for Versum.
When the trading volume threshold is reached, a KYC warning will display on your Versum dashboard, and any sales will be held in escrow until you complete the KYC requirement with TezID. Upon completion you will be able to withdraw your funds from the dashboard.
How do I get approved for KYC on Versum?
If you hit the thresolds, and need to do KYC, you will need to follow these steps:
- Go to https://tezid.net/ and connect your wallet
- Select "Government Proof"
- Click "Register". TezID charges a fee of around $10 in tez at this step.
- Ensure that the "KYC" checkbox is enabled
- Select Versum from the list of providers to share KYC registration status with
- Click "Verify" to complete identity verification
After about 15 minutes, check your dashboard on Versum to see the KYC status. You will then be able to withdraw any tezos held in escrow pending KYC from your dashboard.
Read more about how KYC affects cryptocurrency marketplaces
- The Record - New EU legislation to ban anonymous cryptocurrency wallets, transfers
- European Commission - Q&A: Anti-Money Laundering and Countering Financing of Terrorism
- Frankfurt School Blockchain Center: Crypto Currencies as a New Challenge to Anti-Money Laundering Regulation and the Know-Your-Customer-Principle
- Euronews: EU lawmakers back tough traceability rules on crypto transfers in fight against money laundering