What is KYC and Why Does it Matter for Cryptocurrency Buyers

*In this two-part series, we will cover the compliance rules and procedures when opening an account with a regulated crypto exchange like Gemini. Today we start with the basics of Know Your Customer (KYC) rules and why they are necessary. *

Thoughtful regulation is necessary to create healthy markets and is a win-win for the cryptocurrency market and regulators alike. Gemini has four key pillars that drive all our decisions: Security, Licensing, Compliance and Product. These pillars help us build trust, both in the market of the future, and in Gemini.

Gemini has followed the compliance and regulatory safeguards put in place by regulators for the traditional financial markets since our launch. Executing KYC procedures on all our customers is a part of those safeguards and incredibly important to maintain our compliance with the Bank Secrecy Act and associated Anti-Money Laundering regulations.

KYC is how financial institutions verify a customer’s identity, making sure they aren’t on any prohibited sanctions lists and helps to ensure criminals do not use financial institutions for money laundering.

What are the benefits of going through the KYC process? The safety of your personal funds is one of our top priorities and so is keeping bad actors off our platform. This doesn't just serve our customers and Gemini, it helps the health of the entire cryptocurrency industry and maintaining the integrity of the financial system.

Our Regulatory responsibility and obligations: Gemini is a trust company and Qualified Custodian chartered by the New York State Department of Financial Services. To keep our license, we are required to verify the identity of our customers. We also must adhere to strict governance and procedures regarding how we store and use your personal information for your safety and security as well as our liability. Gemini is audited regularly to make sure we are complying with these procedures.

How will your personal data be used? The information you submit is used to verify your identity. For an in-depth understanding regarding what information we collect and how we treat it, please read our Privacy Policy.

What does Gemini do with your information? The information you provide is stored safely and securely. We were the first exchange and custodian in the world to complete both a SOC 2 Type 1 examination, and a SOC 2 Type 2 examination, demonstrating our level of security compliance in protecting customer data and funds. SOC 2 certification means that an independent auditor has confirmed that Gemini’s systems are set up to ensure security, availability, and confidentiality of customer data. The SOC 2 Type 2 examination requires Gemini to comply with more stringent specification in how we store and protect data. SOC 2 is both a technical audit and a requirement that comprehensive information security policies and procedures be written and followed.

In part two we will provide a few helpful tips for Gemini’s KYC process and how it is applied during the onboarding process.

To complete the signup process today click here.

Onward and Upward,

Noah B. Perlman
Chief Operating Officer