What is KYC and why does it matter?

Identity is a set of claims that can be used to describe a unique person. Verification, or to verify something, prove or checks that something exists, or is true or correct. So identity verification, like KYC, is a process that validates a person’s identifying traits and verifies them against a real, physical human.

Know your customer (alternatively know your client) is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship. Essentially it answers a question is a person truly who they claim to be? The term is also used to refer to the regulatory requirements for anti-money laundering, fraud, and terrorist financing which govern these activities. 

Thoughtful regulation is necessary to create healthy markets and is a win-win for the cryptocurrency market and regulators. Blocktrade follows the compliance and regulatory safeguards put in place by the regulators. Executing KYC procedure on all our customers is a part of those safeguards, that protect the customer and the company as well as contributing to safer financial markets overall.  


Why digital verification became necessary?

Today, businesses in every industry are moving towards digital models. From banking to shopping, trading, etc. Companies are using digital infrastructure to connect people with what they want and need right now. Comparing to face to face identity verification, digital identity verification speeds up the process and removes obstacles such as geographical boundaries and ensures an overall better customer experience (no more waiting in line, faster account openings, and approvals, etc.).

What are the benefits of going through the KYC process?

The safety of your personal funds is one of our top priorities and so is keeping criminals off our platform. This serves our customers and helps maintain the integrity of the financial systems and the entire cryptocurrency industry, while at the same time we are making sure that rules and regulations are being respected.


Our regulatory responsibilities and obligations

Blocktrade S.A. is a company incorporated in Luxembourg. To comply with all regulatory requirements of AML, we are required to identify all of our customers and monitor incoming/outgoing transactions. We must also adhere to strict procedures regarding how we store and use the personal information you provided for your safety and security as well as our liability.    

How will we use your personal data?

All the information you submit is used to verify your identity. For a more in-depth understanding of what information we collect and how we treat it, please read our Privacy Policy.

What kind of KYC does Blocktrade use?

We combine document checks, biometric verification, PEP (politically exposes persons) and watchlist cross-checks. The best way to detect any falsely represented documents is to compare a digital image of the user (photo/selfie) to the image on the ID card or passport. A document check paired with a facial check verifies that the document is genuine and is tied to the person presenting it. We believe it is one of the most effective ways to eliminate most types of fraud. After the personal identity is confirmed, we then cross-reference these documents against the PEP & Watchlist (sometimes also referred to as sanctions list), to determine if additional steps are required before approval or disapproval of the account takes place.


To register and proceed trough our KYC process today, click here.

To read our guidelines on verification, click here