So, you’re doing a crypto ICO right? Awesome. ICO’s, also called “crowdfunding 2.0” give the opportunity to raise money and kickstart launch your startup the fast way. 2017 is the year of ICO’s. Lots of modern startups find the way to offering new coins in an organized crowd sale to fund their future pland or startup growth.
With doing an ICO comes responsibility and transparency of plans. And also knowing from who you accept investments. What you don’t want, is being a vehicle for unwanted dodgy investors and become a victim of “money laundry” practices. To prevent that, more ICO’s choose to do a “Know Your Customer” (KYC) procedure before accept investments from a party in order to see if the investing party is indeed trustable.
It can be a real hassle to do proper KYC procedures yourself. To set up a secure way to receive, process and check ID’s can be painfull and labor intensitive process. So, you choose to oursource, and see there are companies that charge real money per ID check, some between few USD up to the price you pay for a nice diner in a fancy restaurant.. With those amount of costs, your KYC will cost you more (money and hassle) than you could ever imagine.
But, there is a smarter, easier and faster way to do proper KYC without the hassle and with rather well no costs at all. Whay about making use of global processes that already have done the KYC process for you? It would be great if a potential investor can just prove to you that he has already went through a KYC process before and you can trust that withour a doubt? It exists, and it is easier than you think…
In the European Union all EU banks have the obligation to do proper and well organized ID checks on all of their customers when opening a bank account. So, when you are in EU, you could just ask your potential investor to transfer $0,01 to your EU IBAN (BIC) bank account number with the wallet addres they want to use for investing in the transfer subscription. By receiving the IBAN transfer you could trust that the owner of the EU bank account has went through a KYC process when opening the bank account.
But, what if you’re not in the EU? Think PayPal ;-). When opening a PayPal account and connecting a creditcard or bank account number in order to transfer money with your PayPal account, you also need to go through a KYC process. So, when your ICO is not in the EU and you want to offer a KYC validation to your investors, simply ask them to send a small transaction to your PayPal account from their own PayPal account. All done.