Altcoins Talks - Cryptocurrency Forum
Further Discussions => General Discussion => Topic started by: BIT_TEAM on April 23, 2020, 11:07:36 AM
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Security plays a very important role in the operation of any cryptocurrency trading service.
BitTeam is a P2P platform where anyone can sell or buy a crypto.
P2P service enables people to work with each other without the involvement of third parties as trustees. At the same time, classic cryptocurrency exchanges are companies that act as pure intermediaries between the participants of the transaction.
When you find a buy/sell order coincides, the exchange program doesn’t start processing the transaction, but connects the two sides together, allowing you to complete the exchange.
The platform is simply obliged to work on the safety of its members. In addition to strict rules regarding the transaction, an important part is the process of verification of participants.
What is verification?
In simple words, this is the process of verifying a person’s identity. This is currently a very big problem for many cryptocurrency companies. The rise of popularity led to an increase in the percentage of fraud. On the one hand, it is very important to respect privacy, and on the other, security.
A very good balance was found in the system, which is actively used in the Bit team service. And we are talking about the KYC verification rule.
Bit team uses advanced technologies in KYC and AML, entrusting this very important process to world-famous companies with licenses and certificates in all countries. Also, for each account, there are restrictions on the amount of the transaction, which can be removed through the KYC verification procedure.
What is KYC verification?
KYC stands for "Know Your Customer." It is actually a process of establishing a person’s identity and, as a rule, includes several main points:
- Verification of identity and citizenship;
-Checking the user to participate in illegal activities;
-Study of the source of funds and destination;
-Search for suspicious transactions or evaluate too large transaction volumes.
The purpose of KYC is to screen out those who do not have the right to use the service and are considered to be unscrupulous participants.
For example, those who have not reached the right age, illegal immigrants, or people with criminal convictions. Information from the collected database should be provided to law enforcement agencies to investigate crimes as necessary.
Why is verification so needed on exchanges?
For governments and law enforcement agencies, KYC verification is very important, as it is one of the most reliable ways to prevent crimes such as money laundering or other theft.
Verification on exchanges is a symbol of the fact that regulatory authorities are confident in the legality of the transaction. The user shows himself to be a law-abiding citizen and the state has no grounds for claims against him.
So, verification of the exchange provides:
-General security of customers, the project, and all operations on the platform.
- Compliance with international norms and standards by exchanges;
- The presence of verification, as a rule, proves that the project is not a scam;
-Security of your crypto assets, protection against money laundering