At the end of last year, major exchanges successively removed users from mainland China and other countries.

For a while, there was a big earthquake in the currency circle, as if the end was approaching.

It directly awakened a large number of users: decentralization and anonymity do not mean that the encrypted world is a free place in a gray area, and it will eventually embark on the road of being regulated.

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However, for most of the currency people, this fact means that the threshold of this circle has been so high that many people can no longer participate.

However, under the premise that supervision is a necessary means, compliance may not be an opportunity. At this time, many platforms with a keen sense of smell are catering to the needs of national supervision and have opened verification methods such as KYC.

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What is KYC?

Baidu Encyclopedia Interpretation: KYC (foreign name Know Your Customer) is the enhanced review of account holders, which is the institutional basis for anti-money laundering to prevent corruption. It also refers to a series of rules and obligations that financial institutions must abide by in jurisdictions such as the United States, the European Union, and Australia.

The initial KYC is a bit like the identity verification we usually do - enter the ID number and name and then perform face recognition. The main purpose is to check the relevant database to verify its authenticity and ensure that "you are really you".

So what is KYC in cryptocurrency?

Decentralization will undoubtedly make KYC very difficult, because there is no intermediary that can provide an inherent level of privacy peer-to-peer, and such a process lacks oversight.

Blockchain technology has a certain degree of inherent transparency, but although everyone can see the transactions that occur on the ledger, it is difficult for individuals to "draw the line" with the wallet address.

Therefore, regulators first set their sights on the fiat currency transactions of centralized exchanges, which means that your withdrawal or deposit has been supervised and protected.

Therefore, KYC of centralized exchanges has become a common requirement, especially after governments around the world cracked down on it.

Coinbase, an established leading exchange that has not required a KYC process for many years, has also implemented strict KYC protocols to serve the US market by complying with the requirements of US regulators.

But there are still some "top iron" exchanges, such as BitMeX, which have been sued for not complying with KYC laws to provide services to US customers.

At present, the US Securities and Exchange Commission has issued a statement on DeFi, but has not issued regulations for DEX. Of course, we guess that if the U.S. government tries to regulate decentralized protocols, it may start a "war" with the crypto community.

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CertiK announced the launch of KYC verification service for project teams!

As a leader in cryptocurrency security, CertiK is committed to protecting blockchain and cryptocurrency projects and users.

Most of the teams that have risen suddenly in the past few years are anonymous, which also makes possible high risks about anonymity such as running away or other fraudulent behavior.

Therefore CertiK KYC aims to de-anonymize the project team and establish greater accountability through a strict review process.

Skynet dynamic scanning systemSkynet dynamic scanning systemA series of detection methods, such as , are a step in the end-to-end security solution, which can provide the maximum security protection for the entire community.

Authentication

• Authentication

The CertiK security team requires the project party to provide verification of identity documents such as passports, including using an artificial intelligence-based detection system to check the authenticity and validity of the ID to ensure that "he is him and he is a human being", rather than using AI to synthesize CEO of a certain project.

• KYC data collection

All members of the project team will need to provide additional verifiable data to help us conduct in-depth due diligence to confirm that "they are indeed them of this project and they are all human" rather than a composite of several different Existing project members. This data is collected, evaluated and stored privately by CertiK security researchers.

• background check

The CertiK team will conduct background checks on project team members to ensure that the data they provide is true and valid, and there is no past suspicious risk behavior.

• live video call

In addition to the above methods, CertiK will also conduct a live video call with each KYC'd team member to verify their identity and other required parameters.

Example: https://www.certik.com/projects/CertiK (projects that have completed KYC certification will display the KYC certification logo in the upper right corner of their project homepage).

Welcome to visit CertiK official website [https://www.certik.com/] to find projects that have passed KYC verification.

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Are regular users benefiting from the future of cryptocurrency regulation?

On this point, there are actually quite big differences in the community.

Many people believe that government regulation deviates from the core essence of decentralization and blockchain, and they are also afraid that the "one size fits all" of regulators will limit the development of the encryption field.

Others worry that if regulators come up with favorable policies similar to the current situation, it will undermine the core principles of decentralization such as equal access for all-because these favorable policies have been targeted at revenues of more than 20% per annum for the past two years. million US dollars, or a class of investors with net assets exceeding US$1 million.

If only this type of investors can make specific types of investments, then DeFi’s goal of allowing everyone to participate in finance will become empty talk, and the fair distribution of tokens will be far away.

These concerns come from all parts of the cryptocurrency industry, but in general, KYC is still reasonable and legal for ordinary users. This can be seen in the results of Coinbase becoming the largest exchange in the United States.

With the progress of supervision, the crackdown on fraudulent and malicious players will eventually benefit ordinary users. Therefore, most communities support KYC requirements and soft supervision is also a foreseeable future, which is also a step in the government's gradual acceptance of the cryptocurrency field. distinctive sign.