Importance of KYC for HotBTC cryptocurrency exchange

Posted On : 16 Jun 2020
Category : Blog, Cryptocurrency, Exchange
Cryptocurrency Exchange

As simply known as “know your customer”, KYC is such an important procedure implemented by HotBTC exchange in order to identify its customers or the traders. However, KYC plays a vital role and is incorporated in the trade process in order to eliminate unwanted people and to make sure that they are not able to trade or use the exchange platform. The KYC process remains the same as done for opening a bank account where you are asked to submit all your personal details. Once you create an account on HotBTC all you need to do is complete your KYC by submitting your Aadhar card and PAN card or else you can even download the Google Authenticator app and perform the two-factor authentication as well.

What is the importance of KYC for HotBTC?

With the increasing number of cryptocurrency exchanges, the growth of different types of crypto trading platforms is inevitable. This is the reason why KYC is incorporated as it serves its purpose by restoring proper identities of the traders who are buying or selling cryptocurrencies, converting crypto to fiat and vice-versa, and several other relating activities. HotBTC has implemented the Know Your Customer (KYC) practices which are best and is utterly required in the market. In order to comply with it, the traders simply need to submit their personal information during account creation. However, this practice may vary from one exchange to another, and there are several other exchanges that can even ban trading for traders residing in a different country.

Once after creating your trading account on HotBTC exchange, you have to complete the KYC (know your customer) process which is incorporated by the exchange in order to avoid any scam and to properly complete the verification process for the individual trader. Moreover, this process is very important as it serves as a checkpoint for the crypto exchange and is helpful both for the exchange and the traders. Even in terms of securing trader identities, KYC comes with its own benefits such as their identities will be verified properly and they can start trading instantly.

However, the KYC practices may vary from one exchange to another, and some even may mandate KYC in order to withdraw funds or lift certain limitations as well. Thus, obligate the traders to submit copies of photo identification and proof of residence as well. You should also check if the crypto exchanges do ban the traders or trade residing in certain countries. HotBTC is counted in the category of the best cryptocurrency exchange for strictly mandating the KYC process in order to protect the identities of its traders.

What if KYC is not incorporated?

If KYC is not implemented by HotBTC exchange then it would be impossible to cover the verification procedures according to the international standards in order to prevent illegal activities on the platform. HotBTC can be called the best cryptocurrency exchange as it has its own verification process within the standards of the KYC framework. If KYC is not complied with on the exchange platform then it would be impossible to assess the risks involved in the trade process and identifying and combating the illegal activities, and trade resources cannot be allocated in an efficient manner. If the KYC procedure is not implemented by the crypto trading platform then it would be impossible to combat the financial terrorism and it may even encourage illicit transactions and decrease the wallet securities as well.

The KYC procedure may not be much talked about in the crypto trading community, but the existence of these procedures does help in preventing any illegal money transfers and several other fraudulent activities. KYC does serve an important purpose as well like if any company or platform wants to participate in the crypto domain, they would be benefited by following these regulations in its home country and other countries of its traders.

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