The New eKYC : Electronic Know Your Customer
With the development in the technology we are seeing some new cool things that's making the life of it's users very easy. And the role that blockchain technology may have in future will probably be bigger whether its in terms of payments or other stuffs that's happening in the internet world.
Introducing eKYC
You may have heard of KYC (Know Your Customer) before, which means,
Know Your Customer (KYC) refers to the process of verifying the identity of your customers, either before or during the time that they start doing business with you. The term “KYC” also references the regulated bank customer identity verification practices to assess and monitor customer risk. source.
eKYC stands for "Electronic Know Your Customer". You can say it's a new and developed form of that traditional KYC system.
eKYC makes the life of the customers easy because it can be processed online. Meaning that with eKYC, customers will now be able to submit their documents and forms online.
eKYC makes the process easy, fast and transparent as well as reducing the costs that were involved in the paperwork and documentation being done through KYC.
Crypto industry have been on target by some of the authorities for thinking it as a tool that can help in money laundering. eKYC may potentially solve this problem as well if the system is inducted by the crypto exchanges in making the space safe and secure. With eKYC, most probably users may not be able to create multiple accounts on exchanges or any other platform for whatever reason which could potentially be beneficial in preventing some scams.
There could be a drawback to this and that is when the personal data being collected with eKYC by the companies, what's the guarantee that your personal data not be compromised or sold to someone else?
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