Here’s Why Know Your Customer (KYC) Is Important & Matters to JPEX Traders

JPEX is a regulated exchange and as a result, we deem it extremely important to know every customer who sits behind a personal computer or smartphone to access our website or mobile application. This is the primary reason why we introduced the Know Your Customer (KYC) policy which is a vital step in our continuation to better serve our customers across the globe. If you do not know much about KYC or know a bit about it but not its relevance, follow this article in its entirety. 

Know Your Customer (KYC) Explained

As of September 2022, anyone with the ability to set up an account with a centralized cryptocurrency exchange (CEX) or a decentralized cryptocurrency exchange (DEX) must have become accustomed to KYC. Before crypto, the only ways of depositing funds on a trading platform were via direct bank transfers or through debit and credit cards. Before you could get your hands on such accounts, the financial institution of your choice would have passed you through a rigorous Know Your Customer (KYC) process. 

JPEX is no exception since modern crypto exchanges are flooded with scammers, hackers, and other cyber criminals whose interest lies in bringing misery to users and tarnishing the image of exchanges. 

Having built this well-sophisticated platform with all the necessary security features in a saturated market where more than 500 crypto exchanges compete for users, we require all users no matter their status in society to provide essential identification information to fully verify who is behind the smart device and where they come from. 

Although JPEX operates in the decentralized finance (DeFi) world, we are centralized in our administrative operations. This means that unlike DEXs such as Uniswap, SushiSwap, and Shibaswap which do not prioritize identification, we need your data for good reason. 

Why does JPEX need my data and what will they do with it?

JPEX is not part of the big technology companies that sell the data of their clients. We require your data for verification purposes ONLY. We require details such as your full legal name, verifiable email, and residential address as well as an active phone number. 

Your full name should appear on a government-issued identification card and this can be in the form of a PASSPORT or NATIONAL ID. 

Aside from that, JPEX will need a bank or credit card statement for users who would want to make deposits using bank transfers or bank cards. These documents will fully verify your identity and give you unlimited access to the JPEX ecosystem. 

Importance of Cryptocurrency: Know Your Customer?

Put simply, unverified users cannot enjoy all the essential features of our ecosystem like fully verified customers. 

JPEX raises withdrawal limits for verified users

Limits are an essential attribute you should take note of before depositing funds on an exchange. Every crypto trading platform has limits for making a withdrawal. Once you go through the crypto KYC process and complete it successfully, you will be able to make withdrawals that are worth more than other users who are not fully trusted by the exchange. 

There are numerous instances where trades could be made which could bring you huge returns in a short period. Because of not being tagged as fully verified, you will be limited as to the amount you can withdraw which can only be increased by letting JPEX know who you are so that we can assess the potential purpose of your gains. 

Reduces identity theft, fraud, and money laundering

In May 2021, the Federal Trade Commission (FTC) in the United States reported that impersonators of Tesla CEO Elon Musk stole at least $2 million from cryptocurrency investors. 

Scammers are all over the web and since we spend more of our active time within a day online, we continue to leave several traits of our identity in a space where third parties with bad motives also operate. This includes bank cards used to make petty purchases. 

Should someone steal details of your card and intend to use JPEX as an intermediary to abscond with your funds, the person’s inability to provide an ID card and bank statement that links them to your card will see all transaction attempts declined. 

Throughout the years, there have been several instances where loyal customers of exchanges have had their identities stolen with millions in cumulative money lost. 

Fortunately, JPEX has not experienced it, and we do not intend to be the platform a cybercriminal used to dupe unsuspecting victims of their hard-earned money. 

Verified users are protected by JPEX Insurance

Unlike many exchanges which do not have the interest of their customers at heart, JPEX has made provision for ours should something bad happen. ‘Something bad’ does not only represent cybersecurity breaches but other activities on the platform that may lead to a significant loss in funds for our users. Due to the difficulty in resolving all the problems that may arise out of an unfortunate incident, it would be easy to locate fully verified customers since we have their data in our system. 

Chance to enjoy all the products in our ecosystem

Going through the Know Your Customer cryptocurrency procedure on JPEX can bring you other perks and rewards you never imagined. JPEX recently launched our token called JPC. 

The launch of cryptocurrencies represents a great time to buy coins at a relatively smaller price than market value. This means that you can buy more with a smaller amount of money and resell your tokens at a later date and rake in enormous gains. While millions of our customers decided to buy JPC from the spot market (JPC/USDT), only the verified clients of the exchange were able to do so. Should other promotional events come along the way such as airdrops, unverified users may have spent money on the exchange but will be left behind. GO THROUGH KYC NOW!!! 

In conclusion, Know Your Customer is an integral part of the customer service system which cannot be ignored. Despite the anonymity feature associated with the use of certain exchanges, JPEX wants to remain transparent as possible so that we can help authorities combat terrorism financing, identity theft, and money laundering. The only way we can help contribute is to know the man or woman behind inputting figures into our website and mobile application.