KYC, FAQ

What is the basic idea behind the KYC.LEGAL project?

Many countries and industries have specific rules on client relations. For example, it is incredibly difficult, nearly impossible in fact, to open a bank account or receive a prescription for a rare medicine without proper proof of identity. In the USA this concept is called Know Your Customer, or KYC. Our product allows the identity of users to be established and documented, so that going forward they can register for any services that require such verification by providing only that information which is required for each individual service. Our solution will help them to quickly and easily become verified users. We have created a product that makes it much easier to comply with client identification requirements. The product is made up of two parts: document verification through a mobile application, and verification of identity and documents with the help of a KYC.LEGAL agent. The entire process should take no more than 45 minutes, which is an all-time record on this market. We have a finished, functional application, which can already be downloaded and installed on both iOS and Android.

Which services did you have in mind when creating your application?

Exchanges, cryptoexchanges, brokerage offices, banks, funds, online loans, etc. The next level will include, for example, services such as online orders of prescription medicines, or proof of a user's age for, say, the purchase of alcohol or tobacco. In a word, any services that require identity verification.

Which national markets are you targeting?

The entire world, without limitation. We are already set for rollout on the English- and Russian-speaking markets. In the future we plan to expand around the globe.

What will this look like from a technical standpoint? Will users need to go somewhere and show their documents?

No, it is not like that at all. The product consists of two parts. The first part is independent self-verification. This is for those cases when the relevant service only requires users to independently put in their information, without any additional authentication, at the users' personal responsibility. The second part is when one of our agents goes to a convenient place of the user's choosing and confirms the information entered. Going forward, the GID checks this information against numerous databases, and the user receives the maximum level of verification and identification.

Won't access to the services of your agents be limited to the big cities?

No, not necessarily. The project does not plan to maintain a staff of agents. Almost anyone who is willing to go and confirm someone's identity and verify his or her documents for $5-25 can become an agent. Like an Uber driver, it is enough for the agent to have our application, through which orders will be placed. If clients who would like to use this service appear in a certain region, we find local people who are willing to act as our agents.

What kind of protections are in place? Could there not be a situation where a fake user confirms his or her identify with the help of a fake agent?

The initial information entered can be anything, even false information. However, when the order is processed we check the cardholder and the party who is paying the money. The card is issued by a bank, which performs some sort of check on its end. Potential agents also undergo a fairly in-depth verification process: utilities bills issued in their name and to their address, passport or other identification document, details of bank accounts that have been in existence for at least 45 days (this ensures another level of reliability, we do not want fly-by-night agents). We check those who will then check our clients. A document identification system will be used to check the documents submitted during user verification, and we also perform an AML check and use various other internal and external services that allow us to verify the provided documents. During the second stage of document verification, we use agents who must confirm that the person exists and that the documents indeed belong to him or her. It is similar to the example of receiving a credit card from a bank. The bank sends a courier who checks the recipient and his or her documents. Anyone, anywhere in the world, who meets our selection criteria can become an agent. The KYC.LEGAL agent will receive a commission for each visit to a user. One might say that this is a sort of "uber KYC".

Who is accountable if, despite everything, something suddenly goes wrong?

Our agent is responsible for ensuring that all the information on a client is checked carefully. If there are problems, they are resolved through the courts. It will be fairly easy to identify a potential fraudster, as we will know quite a lot about him or her.

How did the idea for the project come about?

About a year ago, our team was working on the creation of a microcredit product for the financial market. We wanted to make the process as simple, quick and reliable as possible. It turned out that the client identification solutions on the market were all too complex and difficult to use. There was simply no convenient solution. We were forced to think it up and create it. The application of crowdsourcing and external agents to the KYC concept makes it possible to ensure its simplicity and speed.

Who is on the project team?

The founders of the KYC.LEGAL project are Daniil Rausov, the creator of a number of information technology and B2B companies, and Sergei Bekrenev, the owner of the company European Legal Service (EL S), one of the largest legal companies in Russian and the CIS. The Strategy Director of the project is Nick Evdokimov, an experienced and talented blockchain entrepreneur and founder of dozens of successful projects. The team currently has 12 members, including a number of developers with whom the founders have already released numerous joint projects.

Where is your headquarters located?

The project developers work in Saint Petersburg and Moscow. The project has offices in Berlin, San Francisco and Moscow. KYC.LEGAL is an international project, focused on the global market.

How long have you been involved in blockchain?

We have been working in information technology for a long time now, more than 10 years. The core of our team has been together for more than five years now, working on projects that cater to our already existing businesses and provide B2B (business to business) solutions: project management, goal setting, audit, etc. We have been watching blockchain closely since 2016, and have now joined forces with Nick Evdokimov and decided to hold our own ICO.

How much money do you plan to collect through the ICO? What will the money be used for?

KYC.LEGAL is holding an ICO in order to develop and implement a useful and urgently needed service for the market. There are currently no handy, simple and functioning client identification solutions on the market. We have a finished, operational application that can be downloaded and installed right now on iOS and Android. At the moment, only the first part of the project (self-verification) is up and running, but both are necessary for compliance with all KYC requirements. The second part (agent verification) will be launched in the near future. We estimate that $35 million is needed to achieve the project's business goals and to expand the reach of the services.

What does the project offer token holders?

The following token concept has been developed. The KYC.LEGAL token is a discount token which offers its holders numerous advantages. The main advantage is the possibility of getting a 50% discount on the KYC verification services offered by the platform. This discount is not available to people without tokens. To receive the discount, they will need to lease the project tokens from token holders. In this case, the 50% discount is split equally between the lessee and the token holder, i.e. each receives a 25% discount on the full cost of the services. Therefore, along with the opportunity to take advantage of a 50% discount on services, token holders can also receive an economic benefit from the lease of tokens. After a single use, the tokens will be temporarily deactivated. Therefore, to be able to regularly use the platform's services and lease the tokens, token holders will have to purchase enough tokens to satisfy their needs. Plans for the future also include the possibility of withdrawing tokens from the system and selling them on an exchange.

Is the KYC.LEGAL business model more of a B2B (business to business) or B2C (business to consumer) model?

It's both. Businesses need our solution, because they need clients that meet applicable KYC requirements. At present it is very difficult to perform this verification, and clients sometimes have to wait weeks for the process to be completed. On the other hand, clients need diverse services that they can only access after they have completed the entire verification process. Now, with the help of our platform, this will be easy and convenient for everyone. And all the laws will be observed!

What is the principal difference between your product and the other solutions that are gradually being introduced to the market? For example, MicroMoney.

As far as we know, MicroMoney is not directly involved in KYC. They collect data from mobile telephones and work together with credit agencies to assess the creditworthiness of clients for microcredits. This is a far cry from what we're doing. Our solution is focused exclusively on client identity verification. Our slogan is "Quick and easy". Making it quick and easy to receive KYC. Using our platform, user verification, from the installation of the application and registration in the system to the arrival of an agent, takes less than 30 minutes. This solution will be applicable to all kinds of different areas of business, and not only to creditors.