To answer this, let’s first look at the term. The term “Know Your Customer” can come into play in many aspects of a business, from accounting to marketing to sales. However, in the financial and (token) regulatory sectors, the term is mainly used for customer compliance terms and due diligence. The “Know Your Customer” process, also referred to as KYC, is in simple terms the principle of verifying the identity of your customers before doing business with them. Mainly this involves identification of beneficial owner, PEP (politically exposed person) – and sanction screening, anti-money laundering screening and some other security related aspects. As we at edeXa AG belong to the regulated sectors, we are required by law to integrate the KYC process into our investor onboarding process, and like many other companies, use it to combat criminal activity.
Accordingly, a KYC process creates trust for both parties. You as an investor know that you are dealing with a serious (regulated) company and we as edeXa AG know who we are doing business with.