03 Feb 2023

10 Key KYC Considerations for Crypto Launchpads

As the crypto industry continues to grow, launchpads are becoming an increasingly popular way for startups and new projects to get off the ground. 

However, with this growth comes a great deal of risk – both for investors and for those running the launchpad itself. One of the most important ways that these risks can be managed is through implementing strict and efficient Know Your Customer (KYC) processes. 

KYC-Chain counts several leading launchpads among its clients, who use our end-to-end onboarding solution to efficiently and securely vet their prospective customers against a diverse and ever-changing array of global financial regulations. 

By ensuring that all users on your platform have been properly vetted, Crypto Launchpads will be able to protect themselves from potential fraud, regulatory sanctions and fines further along the line. 

So what key aspects should a Crypto Launchpad consider when selecting a KYC provider? Here are some of our top tips for choosing a provider that will give you peace of mind without slowing down your project's progress. 

In case you want to find out more about the crypto launchpad ecosystem, we’ve put together a list of 20 of the most exciting launchpads out there where we also explain their importance to the broader crypto industry. If you run or manage your own launchpad, feel free to get  in touch – we’ll be happy to tell you more about how KYC-Chain can create customized onboarding solutions for you.

1. Know Your Regulatory Requirements: It’s important to  understand  the  specific  regulatory regimes  of  the  jurisdictions you operate  in. Regulated  companies such as financial institutions and Virtual  Asset Service Providers (VASPs) often need to comply  with  global and local regulations. Make sure to do your research and select a provider that can meet all of your compliance requirements.

2. Onboarding Acceptance Rate: When it comes to carrying out efficient KYC that maintains a positive Customer Experience, speed is of the essence. The slower your onboarding process, the more likely potential users are to give up and look elsewhere. Make sure that your provider can handle high throughput and offer fast turnaround times – all  while maintaining a robust KYC protocol  that  safeguards your business and protects  against  fraud and other financial crimes. 

3. Accuracy and Quality of Results: While speed is important, accuracy is even more critical. Your provider should be able to quickly and accurately verify the identities of your users, ensuring that you don’t end up with any fake or fraudulent accounts. Look for providers that are able  to demonstrate they use the latest KYC  verification technologies – for example Passive Liveness checks –  and that their onboarding tech has access to diverse  and constantly-updated  global  datasets. 

4. Flexibility: As your business grows and evolves, so too will your KYC needs. Choose a provider that can scale with you as you expand into new markets or launch new products. In parallel, a KYC-provider should  be able  to  offer  customizable  onboarding processes  that can be fine-tuned to  your specific  needs  and markets,  and to seamlessly  merge with  your API and brand identity.  Look for a KYC provider that offers flexible plans so you're not limited in how quickly you can grow your platform. In parallel, if you have ambitions or plans to  expand into new markets, you need to  be sure that the KYC provider you choose is able to offer compliance coverage for those new jurisdictions.

5. Customer Support: Once you have adopted  KYC  tech, it’s important that your provider  is  on hand to  provide  the necessary support when you need it. Select a provider with reliable and demonstrated  customer support,  as referenced by its own client  testimonials  and other third parties. This way, if there are ever any issues or questions about the KYC process, you’ll have someone to turn to for help. 

6. Data Security: Protecting your customer's data should be top priority. Select a provider who takes security seriously and has implemented measures such as encryption, fraud detection and identity verification processes designed to protect against breaches.

7. Reliability: Choose a provider with a good track record of reliability. Make sure they have been in business for long enough to prove their commitment and look at customer reviews to get an idea of how responsive they are to their customers’ needs. By carefully considering all of these factors, you should be able to find the right KYC provider for your launchpad – one that offers fast, secure and reliable identity verification without compromising on quality or flexibility.

8. Unified system: If you're working with multiple KYC providers, having a unified system in place can help to streamline the onboarding process. Look for a provider that offers an integrated platform so all your user data is gathered and stored in one secure location. This way, you’ll be able to quickly verify new users without having to switch between different systems. You’ll also be able to efficiently access compliance records in the event you ever face a compliance audit.

9. Cost: Don't forget to consider cost when selecting a KYC provider. Make sure you understand how much you'll be charged per onboarded user and look for any hidden fees or additional costs that may not be immediately obvious. By doing your due diligence ahead of time, you can ensure that the provider you select best fits both your budget and your needs.

10. Building trust with your community is essential for the success of your launchpad, and selecting the right KYC provider is key to achieving that. Choose a provider that takes security, data privacy and customer experience very seriously.

Consider these tips when choosing a KYC provider, and you’ll be able to confidently provide secure identity verification services while protecting your platform from potential fraud or other legal problems. With a reliable KYC provider on board, you can rest assured knowing that your users and their precious data are in safe hands. 

Are you looking for an automated KYC provider to meet your compliance challenges? Get in touch and we can tell you more about how KYC-Chain can help.

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