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​What is KYC and Why is it Important for Peer-to-Peer Exchanges?

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Key Takeaways:

  • KYC means “Know Your Customer” and refers to an exchange's obligation to carry out certain identity background checks on its clients before allowing them to use its platform. 

  • KYC regulations are mandatory for most of the peer-to-peer marketplaces because it ensures they comply with regulations and laws.

  • The objective is to detect illicit activities such as money laundering and to prevent such bad actors from hiding. 

     

As the cryptocurrency industry grows and matures, there are more regulatory measures. Like other peer-to-peer marketplaces on Pexpay, KYC or identity verification is mandatory to buy and sell crypto on the platform. 

 

What is KYC?

KYC means “know your customer” and refers to an exchange's obligation to carry out certain identity background checks on its clients before allowing them to use its platform. KYC is one of the measures to fight money laundering, bad actors and reduce suspicious activities.  In other words, KYC stops bad actors from hiding.

 

Personal verification requires official information that can verify your identity, like your passport, ID document, driver's license, utility bills, etc., it may change depending on the region. After you register on Pexpay, you need to complete your Personal Verification. If you do not complete KYC, you may not be able to access all the features of our platform. 

 

Why does crypto need KYC?

KYC  or Know Your Customer regulations are mandatory for most of the peer-to-peer marketplaces because it ensures they comply with regulations and laws. The objective is to detect illicit activities and to highlight bad actors and suspicious activities as soon as possible. 

 

If the peer-to-peer marketplace does not require KYC and their users are committing a crime like money laundering, the marketplace may be held liable because they failed to do due diligence. 

 

What does KYC mean for your trading experience?

One benefit of KYC on Pexpay is that users enjoy all the trading features. While unverified users can not take full advantage of all the features on the platform. At the end of the day, KYC requirements keep bad actors away from our marketplace because they never like to provide ID verification and they fail to provide the appropriate document. 

 

With KYC our users can trade securely and with confidence with a lower level of risk. 

For starters, bad actors on financial services platforms never like ID verification because they fail to provide the appropriate documents. With KYC in place, our honest users can now trade confidently with much lower levels of risk.

 

How to complete KYC on Pexpay?

On Pexpay we have done our best to make this process as simple as possible for you. Here is a guide on how to complete your personal verification or KYC:

  1. Login to your Pexpay account and click on [Identification]
  2. Here you see the identification page, click on [Verify] to start the process 
  3. After that, select your country and click on [Continue]
  4. Enter your personal information;  First Name, Last Name, and Date of Birth 
  5. After that enter your Residential Address, Postal Code, and City. 
  6. Next, you will need to upload your ID document picture.
  7. Upload a photo of yourself

 

That’s all! The system will offer you an estimated completion date.  You will receive an email once verification is complete.

 

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Learn more about P2P on Pexpay: 

Disclaimer: Your use of the Pexpay P2P services and all information and other content (including that of third parties) included in or accessible from the Pexpay P2P services is at your sole risk. Our only responsibility is to handle crypto transactions. All payments are final upon completion unless otherwise required by law. Pexpay P2P platform has neither the rights nor the obligations to resolve any disputes arising from a completed payment. Neither Pexpay P2P platform nor merchants shall be responsible for your loss in a completed payment.

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