As Bitcoin today hit another all-time high, retail investors are flocking to get their hands on the cryptocurrency — as well as Ethereum and other altcoins, which are also doing well.
And buying crypto couldn’t be easier: exchanges are doing everything they can to get would-be investors on board.
Including Hong Kong-registered crypto company, Crypto.com, which today announced 0% credit or debit card fees for crypto bought on its exchange after they pass know your customer (KYC) verification.
The service will allow users to buy over 80 cryptocurrencies at market price — including Bitcoin, Bitcoin Cash, Ethereum and the app’s native, Crypto.com coin (today trading at $0.067).
Regulatory push
Crypto.com’s push comes as the company rapidly grows: it is racing to spread cryptocurrency adoption worldwide — just last month, it announced that it had surpassed five million worldwide users, three months after it reached the three million mark. The platform says it wants to reach 100 million users within five years.
The one-stop, crypto-shop has a wallet, a credit card (with cashback offers), an interest-yielding savings account, an automated quant trading service and a loans product.
But in order to get retail investors on board, it is pushing for KYC compliance.
Why?
Because KYC compliance has never been more important. Be it the European Union or the US Securities and Exchange Commission, authorities want to crack down on cryptocurrencies.
Know your customer — or KYC — is a way for financial institutions to verify their users. A KYC check involves identifying the identity of the client when opening an account and periodically over time.
It has become bigger in crypto recently as regulation becomes the norm — and major exchanges are hopping on board to please regulators.
According to a 2020 report by blockchain analysis firm, CipherTrace, 56% of virtual asset service providers still lack strong know your customer (KYC) practices.
In order for companies like Crypto.com (which operates in over 50 countries) to get people involved in cryptocurrencies, knowing their customers is a must.