KYC and On-Ramp Limits
Fiat on-ramps serve as crucial gateways between traditional financial systems and the innovative world of cryptocurrencies. These ramps, while revolutionary, need to navigate complex regulatory landscapes to ensure the security and integrity of transactions. This is where Know Your Customer (KYC) procedures become instrumental. KYC policies, mandated under Anti-Money Laundering (AML) regulations, are a necessity for reputable on-ramps to maintain a safe and trustworthy environment.
They involve verifying the identity of users, essentially becoming a safety net that curbs fraudulent activities. As users complete different levels of verification, they unlock higher limits, enhancing their capacity to interact with the crypto ecosystem. So, while KYC might seem like a tedious process, it's a fundamental step in ensuring a safe and secure experience for all users in the rapidly expanding world of decentralized finance.
Embr Labs does not act as an on-ramp provider, but rather, uses Unlimit Crypto's stack to offer the option to on-ramp from fiat currency to cryptocurrency within our products in a compliant way. This means there are different levels of verification and corresponding on-ramping limits. You can choose to undergo the lightest KYC, but you will also have the lowest limits. Inversely if you wish to, you can undergo level 3 verification for the highest limits.
This article serves to explain how KYC and on-ramping limits work with Unlimit Crypto's on-ramp service.
Level 1: IP, Email and Personal details (for AML screening)
Level 2: Level 1 + Live ID verification
Level 3: Level 2 + Proof of residence verification
Personal Details Required (Level 1)
Middle Name (optional)
Date of Birth
Country of Residence
Note: Personal details have to be provided prior to live identification
Based on the information above, there is a 300-500 EUR limit for light-KYC (just personal information as noted above).
Unlimit Crypto determines low/medium risk end-users as defined in their KYC/AML policies by assessing the risk level of the user based on their transaction history, source of funds, and other factors. The company uses a risk-based approach to determine the level of due diligence required for each customer. This approach is based on the Financial Action Task Force (FATF)’s recommendations for risk-based AML/CFT measures.
Updated on: 23/08/2023