Finance

All you need to know about ‘know your customer rule system’

Introduction

When you are trading in the bitcoin era or any other cryptocurrency platform, you should check if the system has adopted the ‘Know Your Customer Rules’ this is a very important system as it helps a lot in the verification as well as identification of the crypto users. Bitcoin transactions can have implications on your privacy since they are always recorded on the blockchain which is a public platform that can be viewed by everyone. KYC has several and different types of grades that increase the amount of information that is private that can be exposed to the public. Here are the grades that you should know about

No KYC

This is a grade that means that the seller doesn’t know anything about who you are. For you to trade on any platform, you do not have to show any identification document. When making your payments, you always do it privately. Buying bitcoins without KYC in some jurisdiction is possible but in some, it is not possible. Those platforms that you can be able to transact by KYC are normally costly than other types of transactions.

The KYC light

The KYC light always identifies the customers with their phone numbers. They can also be able to identify you with your bank account. Some systems will need that you identify yourself with valid documents while others do not request for your documents. Others are always satisfied with the photo that shows you holding your ID. That is to say, different platforms have different requirements. You should know about bitcoin era requirements before you can proceed to make your transactions.

Full KYC

Full KYC means that you are supposed to provide documents when making any kind of transactions.

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