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.
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.