Why KYC for ICOs is Gaining Prominence in The Crypto World?

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Gaining Prominence in The Crypto World
Initial Coin Offerings or ICOs are the modern-day equivalents of IPOs that raised billions of dollars for dot-com companies in the late 90s and even until the early 2010s. But, these days blockchain is the favored medium for launching most innovative ventures, thus ICOs have attained center stage. Recent ICO of the telegram is an interesting point in case as it raised 1.7 billion US dollars for the omnichannel messaging app. But like conventional investments, there are several compliance-related issues that must be addressed, top of them being KYC for ICOs as a reliable source of ID verification.

The Curious Case of KYC for ICOs

A typical KYC service provider has all the necessary ingredients to ensure that legitimate investors are taking part in the ICO process as the owners of utility tokens have a substantial say in the success of a blockchain based project. Any involvement of investors in financial crime activities can invite regulatory scrutiny from financial regulators. Users with fake credentials can drop the price of a utility token by dumping large chunks of those crypto tokens on a crypto exchange. Many crypto-enthusiasts want to know how to get around KYC ICO but it is imperative that identity verification services are point one in transparency and scalability policies of businesses planning to conduct an ICO. It not only ensures identity theft protection but also prevents ICOs from users who want to conduct digital fraud. ID verification with a trusted identity verification system such as Shufti Pro can be the ideal KYC for ICOs.  

Customized Outreach

Conducting an ICO is an important aspect for any online business venture because it helps to raise capital from a global investor base, rather than being limited to only a small territory or geographical location. But then there are countries from where investors cannot be allowed to invest in an ICO, so there is a conundrum of attracting global attention to your ICO but at the same time, restricting investment from certain countries. But this problem of dual interests can easily be resolved by Shufti Pro that not only offers global coverage to its customers but also authentic country restrict feature as well. 
Geo-targeting of IPs that is further supported by ID verification enables Shufti Pro to restirct users from countries that are not required to be part of an ICO process. For global outreach, Shufti Pro offers coverage to 225+ countries and supports 150+ official languages, that makes it a preferred choice to conduct ICO KYC processes.
As far as identity verification services are concerned, there are not many that can do what Shufti Pro is designed to do. It uses facial verification, document verification, address verification, 2-factor authentication, biometric consent verification, and AML compliance checks. AML compliance that is performed as an added feature of ID verification by Shufti Pro ensures that no one with present on databases and watchlists of financial watchdogs is allowed to invest in an ICO. Because what good is a KYC for ICOs, if it can examine the identity of a potential investor but cannot track the financial risk attached with that person.
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