How To Check If An ICO Is KYC Compliant

ICOs are rather new on the market and quickly establish themselves as a true fundraising phenomenon. Through the use of an ICO, development projects can be funded and companies can be launched faster than in the past.

Billions of dollars are being raised through ICOs right now. This is a lot more than what is possible through capital funding, especially when referring to online businesses.

As expected, because of the fact that ICOs are growing in popularity, people are now looking for investment opportunities. However, scammers also want to take advantage of the situation and the lack of knowledge that people have right now.

In order to stand out as being honest, numerous ICOs now consider voluntary compliance with AML (Anti Money Laundering) and KYC (Know Your Customer) laws. Basically, ICOs go through all points in a regular investment KYC checklist and add the technology needed to be transparent and secure.

In order to check if an ICO is KYC compliant, the best thing you can do is go through different benefits that the ICO gains as it becomes compliant. This includes facts like the following.

Bank Credibility

If an ICO works with banks, it means that it respects KYC and AML regulations. If this was not the case, the bank would never work with the token issuer. When bank collaborations do not exist, it is time to look for other signs of compliance.


Regulations often change with ICOs so it is normal to be faced with problems from time to time. This is why it is important to only consider those businesses that are completely transparent. Such a thing is specifically the case when expanding into new countries where different compliance laws exist.

As an extra thing to consider, remember the fact that legitimate and serious ICOs always try to comply with modern KYC/AML regulations as ahead of time as possible. Even if it is not mandatory to do so, the ICO still becomes compliant and takes clear steps towards having KYC recognized.

A Focus On Legitimacy

With the legitimate ICOs you often see that there is a clear focus put on the long-term of the business. This is clearly visible from the start. Those ICOs that establish themselves as regulated from the start are almost always those that thrive and get support.

Public Perception

What others say about the ICO is really important if you want to know about compliance. Whenever there are serious problems with AML and KYC regulations and procedures, it is almost a certainty that someone will figure it out. This means that you will find negative reports written online about the business. Avoid all ICOs that show signs of not being regulated by simply seeing what problems people figure out as they analyze them.

ICO Reach

The larger the reach of an ICO, the higher the chances that KYC compliance is exactly as it should be. This is because in order to comply with regulations in another country, the ICO needs to prove that it is completely compliant based on the original country of operation.