And why do you need KYC? You don't want citizens of some countries to participate in ICO or what?
Regulators across the globe are taking an increasing interest in ICOs. This can create uncertainty for cryptocurrency projects and their investors.
While the national legislation is sometimes absent or unclear, Know Your Customer (KYC) is a universal concept thats broadly understood in global finance.
Voluntarily complying with KYC regulations provides many advantages to the company and its investors, even if they are not currently explicitly mandated to enact such process.
Here are the main reasons why this approach is advantageous:
Voluntary compliance gives a project and its participants a stamp of legitimacy with regulators and banks.
Cryptocurrency exchanges are beginning to exclude cryptocurrencies that did not properly implement KYC processes. Thus, not running such checks poses a long-term risk to a project.
Voluntary KYC compliance may help ICOs reach a larger global audience and expand the number of jurisdictions in which they can take place.