The Tezos Foundation announced the introduction of KYC/AML checks, which caused dissatisfaction among investors.
The new policy requires depositors to undergo Know Your Customer (KYC) and anti-money laundering (AML) checks to obtain an access code for online funds, which effectively involve identity verification, and while the company is against excessive accumulation of personal data online, it is committed to complying with regulatory requirements.Depositors do not need to go through the process until the launch of beta net, which will happen soon, but after that, the process will become mandatory for everyone who wants to have access to their funds.
An independent company that will monitor this process will help implement the new Tezos Foundation policy. Before verification, contributors will be given access to a “Check Your Contributions” tool to help them comply with the new requirements.
The company notes that such mandatory verifications have become the norm for blockchain projects and “the best way forward,” although such measures have angered its subscribers and users. On the other hand, such measures indicate a change in the industry's attitude towards regulation, reminding users that in July 2017, at the time of the first deposits, a suitable blockchain ecosystem did not yet exist. Since then, the industry has realized that verifying depositors through KYC/AML procedures is necessary and appropriate, as such procedures aim to ensure that funds in circulation are acquired legally and that those involved in transactions are not members of criminal gangs or terrorist organizations.
The European Union is working hard to develop a regulatory framework that will prevent the use of cryptocurrencies in criminal activities. Authorities in South Korea, Japan and the United States are taking similar measures, and their financial institutions are monitoring transactions and traders to prevent any violations.
According to btcmanager.com
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