KYC, AML, why do we implement these regulations?

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Hello Coinmates. As you are for sure pretty familiar with our blog already, we’d like to get into another phase here. We got through the basic stuff like establishing your account, starting with trading and depositing funds to Coinmate. in upcoming articles we are going to focus more and more on sophisticated themes, like differences between traded currencies, their functionality and more on trading itself.

But before getting into that new stage, let’s get to one basic theme that we regularly get questions about. It happens time to time that you write us remarks on our verification processes, asking why and what for do we require the verification documents. So we decided to get a little into that, to explain why are our verification procedures the way they are.

Get Verified page on Coinmate.io
Get Verified page on Coinmate.io

Why do you require video verification?

We did it the easy way in the past, verifying just photos of IDs, but problems came very soon. You see, such a process is quite vulnerable to being faked, you’d wonder how easy it is to fake an ID photograph. With fake users, the exchange itself is in danger, banks can refuse to cooperate with such exchange, or worse, legal authorities can step in. Under such circumstances, all the other fair users can be affected.

Such situations are quite common on poorly verified services and we decided to be one step further to secure the environment on Coinmate. Since all users are verified by the most secure way possible (it is almost impossible to fake a video call so far), the exchange and its clients can rest assured, there is no likelihood of any problems with either bank or legal institutions. You can almost see it as being a member of an exclusive club.

Why I have to upload my banking history?

For very similar reasons as those stated before. It is forbidden to exchange money for third persons on Coinmate and we have to check the probability of such activities. There is no other way, then to look into bank account printout.

And finally, the KYC

KYC form stands for Know Your Customer, and that is exactly what it’s all about. Getting to know you better gives us the possibility to grant you higher verification limits in compliance with our AML regulations. It also opens your way to individual limits. After a month of trading on KYC level, you can let us know how high monthly and daily limit you would like to have established and we can sort it out.

Phew, so many documents to provide…

We understand that, in one way, it is the same for us. Just imagine how many security measures we had to implement to keep all the documents safe and to comply with all the regulations out there. But since we are dealing with FIAT transfers and not only with crypto, we have to do as the law dictates us. And frankly, in many ways, it keeps the whole environment much safer.

Hope we described the thing alright. See you next time with more practical text again.


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