19 lines
2.4 KiB
Markdown
19 lines
2.4 KiB
Markdown
# Know Your Customer
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Know your customer or (KYC) is a regulatory requirement where a provider of a financial services provider or [bank](bank.md) must collect personally identifiable information about its customers in order to mitigate fraud or assist with law enforcement activity.
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Some crypto exchanges require KYC when onboarding customers to trade [cryptoasset](cryptoasset.md). Unregulated exchanges allow customers to trade without going through this process.
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KYC is used to assign an identity to a crypto [wallet](wallet.md) account and is used by law enforcement to track the provenance of crypto assets associated with [illicit-financing](illicit-financing.md).
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See also [money-laundering](money-laundering.md), [aml](aml.md), [illicit-financing](illicit-financing.md) and [regulatory-arbitrage](regulatory-arbitrage.md).
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## References
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1. Petro, Louis W., James P. Martin, Adam A. Wadecki, and Harry Cendrowski. The handbook of fraud deterrence. John Wiley & Sons, 2007.
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1. Rae, Shaela W, and Lorraine Mastersmith. 2019. ‘Crypto Asset Trading in Canada: Entering a New Era of Regulation’. Banking & Finance Law Review 35 (1): 153–85.
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1. Papadopoulos, Georgios. 2015. ‘Currency and the Collective Representations of Authority, Nationality, and Value’. Journal of Cultural Economy 8 (4): 521–34. https://doi.org/10.1080/17530350.2014.989884.
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1. Renieris, Elizabeth M. n.d. ‘Why a Little-Known Blockchain-Based Identity Project in Ethiopia Should Concern Us All’. Centre for International Governance Innovation. Accessed 22 February 2022. https://www.cigionline.org/articles/why-a-little-known-blockchain-based-identity-project-in-ethiopia-should-concern-us-all/.
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1. Cumming, Douglas J., Sofia Johan, and Anshum Pant. 2019. ‘Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty’. Journal of Risk and Financial Management 12 (3): 126. https://doi.org/10.3390/jrfm12030126.
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1. Ivaniuk, Viktoria. 2020. ‘Cryptocurrency Exchange Regulation – An International Review’. Magda Dziembowska, Robert Dziembowski, Apelacja w Postępowaniu, 67.
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1. Johnson, Kristin N. 2021. ‘Decentralized Finance: Regulating Cryptocurrency Exchanges’. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3831439.
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1. White, Molly. 2022. ‘Cryptocurrency Off-Ramps, and the Shift towards Centralization’. Molly White. 12 February 2022. https://blog.mollywhite.net/off-ramps/.
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