With crypto assets gaining acceptance all around and coins like Bitcoin and Ether at all-time highs, there couldn’t be a better time to get into the exciting world of cryptos. But wait, before you can start trading and become a power crypto user, you need to go through a Know Your Customer (KYC) process.
Crypto exchanges like ZebPay have adopted a strict KYC strategy from the beginning to ensure genuine investors’ funds are protected. What’s more, the KYC verification process is as simple on crypto exchanges as anywhere else.
There are just a few things you need to keep in mind while completing the KYC process when using a crypto exchange. We’re taking the example of ZebPay in this article as KYC processes are standard across most exchanges.
Step 1 – Gather Your Documents
After opening an account in a crypto exchange, you will need to submit the following documents for your KYC verification:
1 – PAN Card and
2- Address Proof
The address proof is usually any document amongst your Aadhaar Card or Passport or Driving License or any utility bill from the past three months. More robust crypto exchanges, such as ZebPay for example, also ask for a cheque or bank statement to verify your account.
Step 2 – Steps To Be Taken
Once you have your documents ready to upload, follow these simple steps.
1 – Go to your crypto exchange’s settings page and look for the Verify Identity or Complete KYC tab.
2 – From there, you will need to upload your ID Proof to start off with. You can upload your PAN Card details from your phone gallery or use your phone camera to click a picture of your PAN Card during this stage.
3 – This will be followed by uploading your Address Proof. For this, select the type of identification you’re about to upload, be it your Aadhaar Card, Driving License, Passport or utility bill.
4 – Make sure to upload all the images required as per the document type. For example, if you’re uploading your Aadhaar Card details, make sure you upload pictures of both the front and back side of the card.
5 – Filling KYC details is one part of the process. The next step involves adding and verifying your bank details. Select the Banking option from your exchange’s settings page and follow the instructions to add your bank details.
6 – You might also need to add a photo of your bank cheque or bank statement along with providing details. Follow the same procedure as adding your PAN card explained above for this step too, taking care to ensure that your name, account number and IFSC code are clearly visible.
And voila! That’s it. Now you just need to wait for your crypto exchange to approve your KYC and bank details before you start your journey in the fascinating world of cryptocurrency.
Step 3 – Why You Need KYC
KYC is a mandatory procedure when any monetary transaction is involved, even outside the world of cryptocurrency such as with banks and mutual funds for example. KYC authenticates you and your details and adds to the overall security of the crypto exchange.
Essentially, to be able to carry out any financial transaction one needs to first have their KYC in place. When you get your KYC verification process done, you have given the crypto exchange in this case, information about your identity, address, and financial history. Once your verification is complete, you can exchange your currency in the bank to buy up cryptocurrency and enter the fascinating world of blockchain.
Step 4 – Minimize Risk Of KYC Rejection
Now that you know the importance of KYC, you need to make sure that your application does not get rejected at a crypto exchange. If you’ve followed the steps outlined above, there shouldn’t be any issues with your KYC but sometimes rejections do occur. Follow the pointers mentioned below to avoid facing KYC rejection.
1 – First, take a good look at your images submitted for verification. Sometimes, if they’re hazy or unclear, the crypto exchange would be unable to authenticate your documents, leading to KYC rejection.
2 – Cross check that the photo IDs, such as passport or driving license, has not expired as that could invalidate your identity proof.
3 – Finally, make sure that the bank details provided are correct and if you’re uploading a cheque or bank statement as a supporting document, make sure that the information such as your name, account number and IFSC details are clearly visible.
Completing KYC formalities is the first step to having a successful crypto asset journey. The process is made to ensure that identity verification is done at an early stage to ensure transparency and curb incidents of fraud in an industry whose rapid growth has attracted genuine but also unwanted elements.
Take your time and go through all the steps outlined here as well as any specific ones required by your cryptocurrency exchange to have a smooth and successful KYC application. Finally, make sure you choose a secure and reliable cryptocurrency exchange such as ZebPay that offers easy to upload as well as a robust platform to keep your coins safe.