KYC, or Know Your Customer guidelines, should prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering activities. Related procedures also enable banks to better understand their customers and their financial dealings.

The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. The essential facts are those required to effectively service the customer’s account and to be aware of any special handling instructions for the account. In addition, the broker-dealer needs to be familiar with each person who has authority to act on behalf of the customer, and the broker-dealer needs to comply with all the laws, regulations and rules of the securities industry.

Due to the fact that cryptocurrencies for blockchain technology are becoming more and more mainstream, the amount of transactional data stored within various ledgers becomes huge. Storing these vast data lakes at conventional cloud storage providers would cost quite a fortune.

In Japan, a consortium of nearly 50 banks has partnered with Ripple, an open-source blockchain network with the world’s third largest market capitalization. The main use of such an alliance was using the blockchain technology to enable instant risk-free transaction at a low cost. Conventional financial transactions are costly due to a high number of risks (and risk checks) involved. Opting for Ripple allowed the consortium to decrease the part of the transaction and reduce the associated costs nearly to zero, by locking out multiple risk factors (like double-spending) altogether.

We want to offer you an interesting project. Its name is AiBB. It is bringing together reliable trade data, news, security, and public education. The idea of the project is to help people save their time and get a possibility to be involved in the cryptocurrency one space where you can get information and do exchanges. Interesting? Join us!