As of Dec 1, Alpha5 will be implementing a Full KYC process for all users across the platform. Given we are new, and we aim to be there for the long run, we feel this is the right thing to do as it allows us to place the emphasis on integrity, transparency, and security.
The regulatory frameworks such as Know Your Customer (KYC), and Anti-Money Laundering (AML) have become imperative for crypto exchanges to implement. To mitigate the risks of illegal transactions and financial crimes — and to ultimately create a “frictionless” trading environment — crypto exchanges must comply with regulatory obligations and processes.
KYC verification can take the form of Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) procedures to verify the individuals/groups taking part on the exchange. Having an effective KYC program helps exchanges know who is using their platform and mitigates the risk of financial crimes.
AML screening of customers is checked across updated criminal lists, sanction lists, PEP records, and global watchlists. With this detailed methodology, risks of engaging prohibited capital, fall drastically.
What are the benefits of going through the KYC process?
The safety of your personal funds is one of our top priorities and so is keeping bad actors off of our platform. But this doesn’t just serve our customers and Alpha5, it helps the health of the entire cryptocurrency industry and maintains the integrity of the ‘virtual financial system’. On-boarding a criminal entity can cripple the legitimacy of exchange, and endanger not just the exchange but all of its participants. We have seen numerous examples of exchanges being punished harshly because they harbored illicit funds and didn’t identify their clients. The knock-on effect to other participants on those platforms was large and prohibitive. Having a proper KYC verification process promotes transparency and a trustworthy trading environment.
What do I need to do?
Alpha5 will open the KYC portal on Dec 1. You will have until Dec 15 to complete the process. If by that date, you have not submitted the necessary information, your account may be suspended, and withdrawals for your account will be disabled.
There will be a 2-tier KYC system where:
Tier 1- KYC approval: will allow you to withdraw up to 1000 USDT per day.
Tier 2- KYC approval: will allow you to withdraw an unlimited amount of USDT.
Corporate KYC will also be available on the portal.
How will my personal data be used?
The information you submit is used to verify your identity only through a trusted third-party provider. For an in-depth understanding regarding what ‘information we collect’ and how we treat it, please click here for more details regarding the procedure of Know Your Customer (KYC)
Documents collected will be familiar, such as an ID card, driving license, and residence permit. The list of documents requested however may differ depending on a certain country.
For your safety, Alpha5 will not be storing your information, and our trusted third party will be handling all data with applicable GDPR compliance.
Continue to look out for updates. We look forward to engaging with you in a safe trading environment.
If you have any questions related to Alpha5 exchange, feel free to contact us 24/7 via Alpha5 Customer Support: email@example.com