Why should you boycott ICOs that demand KYC?
KYC (Know Your Customer) is an infamous procedure we have mostly run into while dealing with banks. Sadly for the whole blockchain industry, we see many ICOs demanding KYC in vain. Read below why you should boycott such ICOs.
1. It’s against the whole philosophy of cryptocurrencies and ICOs.
The whole idea of cryptocurrencies is that it’s anonymous. While the wallet information is public, you cannot connect it to a specific person or an entity. But if you do KYC, all the benefits of cryptos are gone.
2. They are watching you.
You don’t know where document photos and the information about you will go. In the best case scenario, it will only go to your government, that can monitor you more closely and see what kind of funds you have and where you spend them. In the worst case scenario, this information will be sold on the black market to criminals who will do identity fraud with your data.
3. KYC is not mandatory.
While in some countries KYC might be a mandatory procedure even for ICOs, there are several tax havens where it’s not. ICO can choose itself where it will establish the company and whether it will do a KYC or not.
4. By demanding KYC, ICO is not putting the interest of the investors first.
Since KYC is voluntary ICO can choose if they will put the interest and privacy of investors first or not. You should generally not do business with entities who do not value you, because if something bad happens you will be the first they will cut off.
5. Country restrictions.
The only way to monitor notorious country restrictions we now see done by many ICOs is to do a KYC. Therefore if you happen to live in the USA or other countries that are usually being banned you cannot invest in such ICOs at all.