What is KYC for? Identity verification explained simply
What is KYC, how does it work and what is it for? Read all about identity verification on Young Platform
Ever heard of Know Your Customer or KYC? It is a set of procedures that allows Young Platform to get to know its users in depth and thus comply with legal obligations. KYC is nothing more than an identification and due diligence process used by banks, financial intermediaries or cryptocurrency exchanges to certify that users who register are natural persons and not. As a result of this process, it is also possible to detect abnormal behaviour and thus avoid potential illegal activities such as money laundering or terrorist financing. KYC is carried out by filling out a questionnaire directly in the app and entering some information such as residential address, social security number and identity document.
KYC procedures must be carried out as a legal requirement (in Italian law, according to Legislative Decree 231/2007 as amended) and are mandatory in services related to digital finance, whether centralised or not. We are here to explain how KYC works on Young Platform, how it is done and why it is so important!
What is the purpose of KYC on Young Platform?
Identity Verification is essential to activate your Young Platform profile and start using all the services of the exchange, from buying and selling crypto to the Earning Wallet. With the Identity Verification procedure, Young Platform guarantees you as well as all other users a secure experience that complies with all Italian regulations. With Identity Verification, you protect yourself and your company from online fraud and money laundering attempts. KYC is the most effective tool cryptocurrency exchanges and financial institutions have to defend their users from financial crimes.
Identity verification on Young Platform: 5 steps in 5 minutes
Concretely, KYC on Young Platform simply consists of entering data. During the course of the procedure you will be asked to communicate and confirm:
- your address of residence;
- your home address;
- your date of birth and nationality;
- the origin of the funds you intend to use on Young Platform;
- the validity of your ID document.
You can read our policy in detail by clicking here.
Identity verification is carried out quickly with software from Onfido, a world leader in artificial intelligence-based identity verification management.
Identity Verification takes place on the Young Platform app (or on the web platform) under User > Account > Account Levels > Level 1.
Have an identity document (ID card, passport or driving licence) and the camera on your mobile phone handy. Now follow these 5 steps to complete the Verification in 5 minutes:
1. Enter your first and last name
Please enter your first and last name as they appear on your ID card. If you have a double barreled first name or surname, enter both of them. Your personal data must be complete! During verification, it is important that your first name and surname match the photo of the ID document you will be asked to submit.
2. Enter your document details
You can use your ID card, passport or driving licence as a document. Make sure that the document is valid and that it is not damaged or discoloured.
3. Select the purpose for which you intend to use Young Platform
4. Take a picture of your document
Upload one shot for the front and one for the back of your document. The picture must capture the entire document, so be careful not to crop out the edges! Shots should be in colour, sharp and in focus. For a flawless photo, choose a well-lit environment.
5. Take a selfie
It is now your turn to pose for the camera. Take a selfie of your face while keeping your hand still, and do not wear any accessories. Get rid of your glasses, hats or anything that can hide your face.
Can’t complete Identity Verification? Here are the most common errors
After following these 5 steps, your procedure will be finalised automatically in about 5 minutes. If it takes longer than expected, this is because the Onfido system is unable to match your selfie to your ID photo, or because some of the data is illegible. Don’t worry, manual checks will be carried out. They will take between two and five working days. You will soon be able to use your account.
If the procedure does not succeed even with manual verification, you will receive a warning e-mail stating one of the following reasons. Let’s see in detail which errors you may have come across:
- User already registered with another account: in this case the name you entered in the procedure is already registered. On Young Platform each person can only register once.
- Please use an alternative document: the document you have chosen is expired or invalid.
- The picture of the document is not valid: the photo of your documents is of poor quality. Try again by following the small steps explained above!
- The picture of the face is not valid: your face is not clearly visible from the selfie you took or cannot be associated with the ID photo you uploaded.
Additional info: who counts as a “politically exposed” person?
During the data collection process, you will be asked to indicate whether you are or have close ties with a politically exposed person (PEP). This category includes all persons who hold public office or who have ceased to hold it for less than a year. We are therefore talking not only about MPs, senators or members of political parties, but also about other categories for which you can find the full list by clicking on this link. You are also required to report if you are a family member of a politically exposed person, i.e. a parent, a spouse or if you have close ties.
Why is this information important? Again, it is the law that requires it! Specifying whether you are a PEP is an additional form of protection against exposure to financial crime or money laundering risks. If you declare that you are a PEP or a family member of a PEP, our team will contact you for details.
Now that you know what KYC on Young Platform is, how it works and what it is used for, you might ask yourself: is it safe to share my documents online?
The answer is: yes, if you do so consciously. Before sharing your data on any online platform or service, please investigate its reliability. A first indication of seriousness and security is the presence of legal documents showing the procedures adopted for KYC and those for processing personal data. You can find the legal documents relating to Young Platform here.
The data you share with Young Platform is handled in accordance with the Privacy and Data Protection Notice, please note that the purpose of the Identity Verification procedure, according to Regulations (EU) 2016/979 and (EU) 2018/1725 of the European Parliament and of the Council and relevant national legislation, is considered to be in the public interest.