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Author Topic: Should ICOs require KYC for Bounty hunters & Airdrops ?  (Read 42260 times)

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Should ICOs require KYC for Bounty hunters & Airdrops ?
« on: July 20, 2018, 11:42:27 PM »
Some ICOs are now requiring KYC for bounty and airdrop distribution,
The nasty trick is that they keep this crucial information till the end.

But, the real question, Should ICOs require KYC for Bounty hunters & Airdrops ?

Some lawyers are advising ICOs to do that, but is it really necessary ?

What is KYC and when is it needed ?

KYC: Know your customer is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship.

Quote
The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and maintaining of accounts. There are two rules which were implemented in July 2012 that cover this topic together: Financial Industry Regulatory Authority (FINRA) Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability). These rules are in place to protect both the broker-dealer and the customer and so that brokers and firms deal fairly with clients.

The Know Your Customer Rule 2090 essentially states that every broker-dealer should use reasonable effort when opening and maintaining client accounts. It is a requirement to know and keep records on the essential facts of each customer, as well as identify each person who has authority to act on the customer’s behalf.

The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. The essential facts are those required to effectively service the customer’s account and to be aware of any special handling instructions for the account. In addition, the broker-dealer needs to be familiar with each person who has authority to act on behalf of the customer, and the broker-dealer needs to comply with all the laws, regulations and rules of the securities industry.
source : https://www.investopedia.com/terms/k/knowyourclient.asp

Thus, here we understand clearly that this is applicable when there is an investor / broker relation, but airdrop hunters and bounty hunters are NOT investors, thus i see no reason for ICOs to require KYC from them.

Please share your views below.
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Should ICOs require KYC for Bounty hunters & Airdrops ?
« on: July 20, 2018, 11:42:27 PM »

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #1 on: July 21, 2018, 02:01:59 AM »
I personally don't think bounties of any kind should require KYC, since you are not investing money into them I don't see why it matters to the ICO.  I can understand wanting KYC is they are investing actual money into the ICO, but that's different from bounties and airdrops of course.   

I think an ICO should operate the way that it wants though, if they want to require KYC that's fine.  However, if they use a bait and switch maneuver to get people to invest weeks of work in the bounty then require KYC afterwards, that is extremely unethical.  ICOs should do what they want with their company as it is their money, but they should be upfront about it always. 
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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #2 on: July 21, 2018, 04:18:48 PM »
Thanks admin!

It is so clear and very transparent.

SORRY to say this,
Now I know KYC of bounties and airdrops that required by (maybe) manager or founder stands for Know You're Corrupt. 
I think it is possible that once the manager knew the project can absolutely survive with high chance of success he/she can require KYC at the middle or at the end of campaign.

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #3 on: July 22, 2018, 07:01:48 AM »
Thanks admin!

It is so clear and very transparent.

SORRY to say this,
Now I know KYC of bounties and airdrops that required by (maybe) manager or founder stands for Know You're Corrupt. 
I think it is possible that once the manager knew the project can absolutely survive with high chance of success he/she can require KYC at the middle or at the end of campaign.


I completely disagree with this.  It's a bait and switch tactic and shouldn't be employed or any part of any campaign.  If a campaign or project is good enough, require KYC beforehand.  If it's not, then you stick with that.  Using KYC at the end screws over people not willing to give credentials to people that may or may not use their information illegally.  Especially when the project could be a scam ICO.  Putting KYC as a surprise will just force desperate people into a situation they can be taken advantage of simply because they want to be paid for their work.  It's not acceptable.
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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #4 on: July 22, 2018, 01:46:47 PM »
This is an interesting question. I will try to express my opinion on how I see this situation. KYC verification is initially needed not by the ICO projects themselves but by financial regulators, in order to make it clear who invested in the project, where this person is from. The project managers are obliged to carry out the tasks of the regulatory body and to conduct an audit of investors. For what the verification of the Bounty participants is necessary, I do not understand. Perhaps this is not the right event, but it has a big plus, revealing multi-accounts on and bots. The situation is twofold and I treat it neutrally)

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #5 on: July 22, 2018, 08:58:35 PM »
You are right admin. KYC is required for investor only. Because it helps to pass the audit and any verification process of a company.

I have figured out 3 reasons why some company required KYC:

- For investor verification.

- Sometimes some project gives the chance to bounty hunter to become co-owner of the company where their bounty reward is considered as the investment. So, it depends on the project policy also.

- The third reason is not for legal use. Some SCAM ICO might do that. They may use the information for some illegal purpose.


Finally, I think it is important to do good research about a company before providing KYC documents.
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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #6 on: July 23, 2018, 05:56:36 AM »
As someone who work with ico before, i would like to give some ideas on why some ico wants to have kyc even for bounty participants.

One of the most common reason is that the base company is located in a country that has a more crypto regulated countries.
Especially singapore whereby they have crypto regulation that singaporean are not allowed to invest in ico stage. As singapore is very strict to its law, lawyers are more careful with the situation. So even investing time to do bounty can also prone to fall under that category. So that is why they want to kyc is because to make sure that during the ico phrase, no tokens are landed up in Singapore hands.

Another reason is the movement of the money. The KYC is to make sure that the tokens landed in the right hand. So whenever there is a suspected money laundry using the tokens, the company is able to provide data that 100% of the tokens goes to the legit people to prove that the company is not part of the laundry. Imagine that a criminal groups are using your tokens to wash millions of dollars, and the records show that you have given away million value of bounties to random people.

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #6 on: July 23, 2018, 05:56:36 AM »


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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #7 on: July 23, 2018, 06:10:00 AM »
As someone who work with ico before, i would like to give some ideas on why some ico wants to have kyc even for bounty participants.

One of the most common reason is that the base company is located in a country that has a more crypto regulated countries.
Especially singapore whereby they have crypto regulation that singaporean are not allowed to invest in ico stage. As singapore is very strict to its law, lawyers are more careful with the situation. So even investing time to do bounty can also prone to fall under that category. So that is why they want to kyc is because to make sure that during the ico phrase, no tokens are landed up in Singapore hands.

Another reason is the movement of the money. The KYC is to make sure that the tokens landed in the right hand. So whenever there is a suspected money laundry using the tokens, the company is able to provide data that 100% of the tokens goes to the legit people to prove that the company is not part of the laundry. Imagine that a criminal groups are using your tokens to wash millions of dollars, and the records show that you have given away million value of bounties to random people.

I understand maybe for ICO buys and maybe bounties over 1500.00 but why for an airdrop?  I just don't see justification in money laundering through airdrop payments.. if its a regulation of that country then fine, I have no argument.. but if this is gonna be a requirement in this space, then there has to be some level of secure system that's better than just sending someone you dont even know in another country information and payment to something that maybe a fraudulent ICO just to get a bounty payment or airdrop.. if you can't do it without KYC because of country laws, then just don't have a bounty or airdrop at all.. you shouldn't be able to reap the rewards of these programs with also putting the participants exposed to all the risk as well. 

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #8 on: July 24, 2018, 08:41:17 AM »
As someone who work with ico before, i would like to give some ideas on why some ico wants to have kyc even for bounty participants.

One of the most common reason is that the base company is located in a country that has a more crypto regulated countries.
Especially singapore whereby they have crypto regulation that singaporean are not allowed to invest in ico stage. As singapore is very strict to its law, lawyers are more careful with the situation. So even investing time to do bounty can also prone to fall under that category. So that is why they want to kyc is because to make sure that during the ico phrase, no tokens are landed up in Singapore hands.

Another reason is the movement of the money. The KYC is to make sure that the tokens landed in the right hand. So whenever there is a suspected money laundry using the tokens, the company is able to provide data that 100% of the tokens goes to the legit people to prove that the company is not part of the laundry. Imagine that a criminal groups are using your tokens to wash millions of dollars, and the records show that you have given away million value of bounties to random people.

I understand maybe for ICO buys and maybe bounties over 1500.00 but why for an airdrop?  I just don't see justification in money laundering through airdrop payments.. if its a regulation of that country then fine, I have no argument.. but if this is gonna be a requirement in this space, then there has to be some level of secure system that's better than just sending someone you dont even know in another country information and payment to something that maybe a fraudulent ICO just to get a bounty payment or airdrop.. if you can't do it without KYC because of country laws, then just don't have a bounty or airdrop at all.. you shouldn't be able to reap the rewards of these programs with also putting the participants exposed to all the risk as well.


Agreed.  I don't want to send my credentials to some random person that might even be a scam.  If there were a centralized service that could verify customers that was trustworthy then we can talk, but there's no way I'm sending my picture IDs to some random.  If ICOs want to use it, I'm fine with that, but be upfront about it so people are given the choice.  Bait and switch is out of the question unless extenuating circumstances are involved.
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Offline Dynamite

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #9 on: July 26, 2018, 12:15:47 PM »
As someone who work with ico before, i would like to give some ideas on why some ico wants to have kyc even for bounty participants.

One of the most common reason is that the base company is located in a country that has a more crypto regulated countries.
Especially singapore whereby they have crypto regulation that singaporean are not allowed to invest in ico stage. As singapore is very strict to its law, lawyers are more careful with the situation. So even investing time to do bounty can also prone to fall under that category. So that is why they want to kyc is because to make sure that during the ico phrase, no tokens are landed up in Singapore hands.

Another reason is the movement of the money. The KYC is to make sure that the tokens landed in the right hand. So whenever there is a suspected money laundry using the tokens, the company is able to provide data that 100% of the tokens goes to the legit people to prove that the company is not part of the laundry. Imagine that a criminal groups are using your tokens to wash millions of dollars, and the records show that you have given away million value of bounties to random people.

Therefore KYC does not base in regulated country is a form of misunderstanding because no sense of requiring KYC if the project have freedom from it.
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Offline EmoneyABC

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #10 on: July 26, 2018, 12:21:18 PM »
Some ICOs are now requiring KYC for bounty and airdrop distribution,
The nasty trick is that they keep this crucial information till the end.

But, the real question, Should ICOs require KYC for Bounty hunters & Airdrops ?

Some lawyers are advising ICOs to do that, but is it really necessary ?

What is KYC and when is it needed ?

KYC: Know your customer is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship.

Quote
The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and maintaining of accounts. There are two rules which were implemented in July 2012 that cover this topic together: Financial Industry Regulatory Authority (FINRA) Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability). These rules are in place to protect both the broker-dealer and the customer and so that brokers and firms deal fairly with clients.

The Know Your Customer Rule 2090 essentially states that every broker-dealer should use reasonable effort when opening and maintaining client accounts. It is a requirement to know and keep records on the essential facts of each customer, as well as identify each person who has authority to act on the customer’s behalf.

The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. The essential facts are those required to effectively service the customer’s account and to be aware of any special handling instructions for the account. In addition, the broker-dealer needs to be familiar with each person who has authority to act on behalf of the customer, and the broker-dealer needs to comply with all the laws, regulations and rules of the securities industry.
source : https://www.investopedia.com/terms/k/knowyourclient.asp

Thus, here we understand clearly that this is applicable when there is an investor / broker relation, but airdrop hunters and bounty hunters are NOT investors, thus i see no reason for ICOs to require KYC from them.

Please share your views below.

Of course there is no reason for KYC when you participated in bounty or airdrop. KYC is only for investors, period.

Finally all depends from participants. If this is no problem for them to disclose their personal information in return for airdrop tokens.
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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #11 on: August 03, 2018, 07:40:28 AM »
Meaning kyc unis not breaking the nature of decentralised system but a protection from any possible participation of illegal person using the decentralized system as their advantage.
Now I am more convinced that some bounty that ask kyc after the campaign are intentional to reduce the amount of the reward because other bounty hunters can't submit the said request. I usually see this to a successful ICO.

By the way, does our forum can avoid such case in order to be fair for the bounty hunters? This is the lack of BTT anyway.
« Last Edit: August 03, 2018, 07:42:59 AM by Quantum X »

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #12 on: August 06, 2018, 12:55:28 PM »
Cheaters are everywhere. I think this is the main reason why some Ico implementing kyc. Bassically data gathering and email for sale
« Last Edit: August 06, 2018, 12:57:32 PM by Cordillerabit »

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #13 on: August 13, 2018, 03:41:16 PM »
I FEEL THE PROJECT IS MORE BETTER THEN THE PREVIOU PROJECT

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Re: Should ICOs require KYC for Bounty hunters & Airdrops ?
« Reply #14 on: August 15, 2018, 11:30:04 AM »
Some ICOs are now requiring KYC for bounty and airdrop distribution,
The nasty trick is that they keep this crucial information till the end.

But, the real question, Should ICOs require KYC for Bounty hunters & Airdrops ?

Some lawyers are advising ICOs to do that, but is it really necessary ?

What is KYC and when is it needed ?

KYC: Know your customer is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship.

Quote
The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and maintaining of accounts. There are two rules which were implemented in July 2012 that cover this topic together: Financial Industry Regulatory Authority (FINRA) Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability). These rules are in place to protect both the broker-dealer and the customer and so that brokers and firms deal fairly with clients.

The Know Your Customer Rule 2090 essentially states that every broker-dealer should use reasonable effort when opening and maintaining client accounts. It is a requirement to know and keep records on the essential facts of each customer, as well as identify each person who has authority to act on the customer’s behalf.

The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. The essential facts are those required to effectively service the customer’s account and to be aware of any special handling instructions for the account. In addition, the broker-dealer needs to be familiar with each person who has authority to act on behalf of the customer, and the broker-dealer needs to comply with all the laws, regulations and rules of the securities industry.
source : newbie deactivated link:https://www.investopedia.com/terms/k/knowyourclient.asp [nonactive]

Thus, here we understand clearly that this is applicable when there is an investor / broker relation, but airdrop hunters and bounty hunters are NOT investors, thus i see no reason for ICOs to require KYC from them.

Please share your views below.
I have handled 2 ICO projects and I can say that KYC is required for to the use of bots. Say, for a telegram airdrop a single person can bring up 1000s of bots and register for airdrop which is not fair.

Also, KYC depends on the project that you are taking part. For some project KYC is not required but you will have to go through many verification process.

Even though KYC process, there are many cheaters who tries to come up with fake identity.

 

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