Education

What Is Know Your Customer (KYC)?

Have you ever downloaded a finance app and had to provide documents or other personal information to verify your identity? If so, you have likely completed what is known as a Know Your Customer (KYC) check.

KYC is a due diligence standard for organizations in the financial services sector. Global regulatory standards require companies to submit basic information about customers, such as legal names and an accepted form of ID. This process helps prevent fraud, corruption, money laundering, and terrorist financing. 

Global regulatory bodies introduced KYC in the 1980s and 1990s. Since then, KYC has expanded to nearly every country and region. Today, before a common process for anyone using finance apps, including Abra.

Benefits of KYC

Reduced Risk Without KYC, the possibility of financial crimes is much higher. The estimated amount of money laundered globally in one year is two to five percent of global GDP or $800 billion to $2 trillion. 

The risk of non-compliance doesn’t just impact the platform. It has an impact on all users, even those who are abiding by the law. Adding KYC protects financial services companies as well as their communities.

Greater Accessibility Adhering to KYC laws allows a company to establish better relationships with reputable partners and other organizations in the financial services sector. By following global guidelines, companies can establish better expand offerings to more countries and regions of the world.

Customer Opportunities Due to reduced risk and establishing relationships with third parties, financial services companies can offer more opportunities for customers who want to utilize their financial services. Lending and borrowing at highly competitive interest rates is one possible outcome of regulatory compliance.

KYC and Crypto Platforms

In the cryptocurrency sector, KYC is now the standard for most platforms with fiat on-ramps and off-ramps — ways in which customers can convert fiat to crypto or vice versa. Companies that offer custodial services also require KYC checks as part of compliance efforts. 

Although some crypto platforms allow users to deposit funds without going through KYC, the accepted amount is generally very small. Most major platforms today require KYC as soon as a new user creates an account.

It’s common for some platforms to have multiple KYC levels to mitigate the risk associated with higher transaction value. The value of funds users can deposit or withdraw increases for those platforms as they provide more information. Other platforms require the same KYC process regardless of the value that users intend to transact.

Abra’s KYC Process

If you haven’t signed up for Abra yet, visit our website homepage and tap “Download App” to get started. 

Abra, as a regulated financial services company, requires KYC checks for our customers. If you are currently using Abra Trade, Abra Earn, or Abra Borrow today, you have already passed KYC. 

Abra’s KYC process requires users to complete two steps: Global KYC and Prime Trust application.

Global KYC

When you first download Abra, you will need to complete Global KYC. Once your application is approved, you can start using Abra Trade to buy and sell cryptocurrencies.

Required Documents

  • US/International Users: Driver License, GOV ID, or Passport.
  • Philippines Users: GOV ID (SSS UMID Card), Driver’s License, Passport, and Voter ID card.

Global KYC is the first step to using Abra. After your identity has been verified, you will be able to start the Prime Trust application — the second and final step of the identity verification process.

Prime Trust Application

Global KYC is the first step to using Abra. After your identity has been verified, you will be able to start the Prime Trust application — the second and final step of the identity verification process. 

Once Primet Trust is complete, you can start using ACH wires, bank wires, Abra Earn, and Abra Borrow.

Required Documents

  • The document must be entirely legible (i.e., all four corners must show, no parts cut-off, no glare covering information)
  • Identification number fully displayed
  • Full name
  • Date of birth 
  • Expiration date present and has not expired
  • For US: your present address
  • For US: Drivers license preferred 
  • If ID requires signature, please make sure it is signed
  • For International: Passport Only (this may change later)

After you submit the required documents, you will receive a pending notification. 

Complete KYC to Earn CPRX

Users who complete both Global KYC and the Prime Trust application can use all of Abra’s features. Plus, users will be eligible to earn CPRX tokens via the Abra Perx rewards program. 

If you have used Abra prior to the introduction of KYC, you are eligible to earn CPRX based on historical in-app activity. 

Complete KYC today to participate in the Abra Perx rewards program and receive your CPRX tokens!