What is KYC?

KYC (‘Know Your Customer’ or ‘Know Your Client’) is part of the broader concept of AML (‘anti-money laundering’), which involves a set of policies, laws and regulations aimed at combating generating income in a fraudulent way. 

Money laundering and tax evasion are considerable crime threats both on national and international levels. Over the years the European Union—of which the United Kingdom (where Electroneum Ltd. is a registered business) is currently a member—has been giving increasing recognition to the fact that money laundering and tax evasion can create serious damage to the stability and reputation of the financial sector, as well as to the economy as a whole.

In May 2015, the European Parliament and Council passed the 4th Anti-Money Laundering Directive (AMLD) to introduce a common framework for proportionate prevention of the use of the financial system for the purpose of money laundering or trafficking. According to the Directive, each member state of the EU should take appropriate steps to identify, assess, understand and mitigate the risks of money laundering through a designated authority or security mechanism coordinating the national response. Furthermore—as per the Directive—obligated entities are required to take appropriate steps to identify and assess the risks of money laundering. It is a part of that process that is known as KYC. 

KYC typically involves:

  • collection and analysis of identity documents,
  • name matching of customers against a list of known parties,
  • creation of an expectation of customers’ transactional behaviour,
  • monitoring of transactions for unexpected behaviour, etc.

…with the specific aim to prevent money laundering and to weed out any suspicious accounts.

Whilst a relatively common practice elsewhere, KYC remains one of the most controversial subjects in the cryptocurrency world. On the one hand, KYC can be said to undermine one of the main principles of the crypto world — anonymity. On the other hand, KYC ensures transparency of transactions, and strengthens the security of users and business-partners in a hybrid (fintech-blockchain) systen such as Electroneum’s.

Some of the main advantages KYC brings are:

  • increased ability to prevent scammers from exploiting Electroneum’s infrastructure for malicious purposes and to combat criminal acts such as money laundering;
  • ensuring safety of investors’ assets;
  • avoiding legal, tax and reputational issues;
  • establishing credibility with banks.

How is Electroneum going about implementing KYC?

Electroneum has partnered with the London based company Yoti to undertake the KYC verification. Yoti is a digital identity platform that makes it quicker, easier and safer for businesses to verify and authenticate their customers: The process is done via the Yoti mobile app.

For more details please visit the KYC and AML FAQs over at Electroneum‘s Community forum.

In summary: Electroneum is committed to implementing KYC to comply with EU regulations. KYC is also a vital precursor for commercial partners to start integrating Electroneum’s systems.

What is Electroneum?

Launched in October 2017, ElectroneumElectroneum Ltd. Registered in England and Wales: No. 10845797
Official website: electroneum.com
is an exciting new cryptocurrency that has been designed to deliver super-convenient and instant P2P payments as well as to provide a real alternative to other existing and often prohibitively-technical cryptocurrencies.

Electroneum makes it easy for everyone to accumulate, spend and exchange its cryptocurrency—”ETN”—by simply downloading a mobile app, available in 20 languages, on Android and iOS(Beta) phones. The convenience and ease of use the app is central to Electroneum’s drive for mass adoption: As per their roadmap and strategy, Electroneum is specifically targeting the unbanked in the developing world—a market estimated by Price Waterhouse Coopers to be worth around $3 trillion.

Global Patent 

Electroneum has a global patent pending on technology allowing instant cryptocurrency payments—already available when using ETN. Significantly, however, the filed patent application covers Bitcoin and other cryptocurrencies, too. 

Instant Payments

Launched in September 2018, Electroneum’s Instant Payment System provides instant confirmations about transactions initiated to both senders and receivers. Generally speaking cryptocurrency transactions tend to be rather slow in comparison to traditional methods (e.g. Visa payments): it can take up to an hour or more for cryptocurrency transactions to become verified and committed to their blockchain. In contrast, by acting as a trusted third party between buyer and seller, Electroneum’s system is able to confirm transactions virtually instantaneously.

API Integration

Recognising that the ability to spend ETN instantly is only half of the equation, Electroneum has developed an API that allows easy integration to accept ETN instantly through all major ecommerce systems (WooCommerce, Magento, OpenCart, Joomla, etc.) as well as through ePOS systems (electronic point of sales systems or tills).

Regulatory Compliance: KYC

Electroneum is the first cryptocurrency to embrace what’s known as KYC. Aimed at increasing security and transparency while protecting against fraud and other such crimes, Know Your Customer (or Know Your Client) is a procedure in which businesses verify the identities of their users. Electroneum’s adoption of KYC ensures EU regulatory compliance, benefits both businesses and users by making cryptocurrency transactions safer and more secure and has also been a requirement by commercial partners in moving forward with integrating ETN. 

Partners

Electroneum has signed agreements in place with global mobile network operators providing access to over 100 million users around the world. These operators will advertise the Electroneum app to their customers and will also accept ETN as payment for airtime and data, as well as offering bonus minutes for purchases with ETN.

Electroneum — The Company

Electroneum Ltd. (“Electroneum”) is a company registered in England and Wales with number is 10845797. Electroneum’s registered office is at Lyndean House, 30-34 Albion Place, Maidstone, Kent ME14 5DZ, England.

The current company Directors are:

Richard Ells

Richard has a history of building successful digital businesses. He co-founded the successful digital agency SiteWizard, now over 20 years old. More recently, he founded Retortal.com in 2013. As the CEO, Richard’s assembled a team of over 40 developers and created a social media management platform, used by global fortune 500 companies such as Herbalife, Mary Kay & Forever Living. Retortal’s software is used by hundreds of thousands of people around the world.

Chris Gorman OBE

Chris has a long history of launching, growing and leading successful ventures spanning a wide range of industries including mobile, music, ecommerce, technology and retail. He has received many business awards including Ernst & Young UK E-Business Entrepreneur of the Year, Scottish Entrepreneur of the Year, Young Business Leader of the Year, Glenfiddich Spirit of Scotland in Business, and the laudable SBAAT Businessman of the Year Award.

General:
Official Site: https://electroneum.com
Online Wallet: https://my.electroneum.com
Team: https://electroneum.com/team
Help:
Support Ticket: https://support.electroneum.com
Social:
Twitter:  https://twitter.com/electroneum
Facebook: https://www.facebook.com/electroneum/
Instagram: https://www.instagram.com/electroneum_currency_official/
Telegram: https://t.me/joinchat/DxoSakHOdk5mqsE-LelfVg
Blog: https://electroneum.com/blog
Downloads:
Android App: https://play.google.com/store/apps/details?id=com.electroneum.mobile
Github: https://github.com/electroneum
Blockchain Raw: https://downloads.electroneum.com/blockchain.raw
Info:
T&C’s: https://electroneum.com/terms-and-conditions
CMC: https://coinmarketcap.com/currencies/electroneum
Exchanges: https://electroneum.com/exchanges
Coinmarketcap: https://coinmarketcap.com/currencies/electroneum/#markets
Explorer: https://blockexplorer.electroneum.com

What is a blockchain?

The idea of the blockchain was first conceptualized in 2008 and was first implemented in 2009 by “Satoshi Nakamoto”The identity of Satoshi remains unknown to this day.. It is the core element not only of the first and to date most well-known cryptocurrency network: Bitcoin, but of all other cryptocurrencies and other possible applications of blockchain technology.

As documented in the original Bitcoin whitepaper, Satoshi’s central concern—leading up to the invention of the blockchain—was the creation of an independent and decentralized electronic payment system based on mathematical proofs and cryptography:

Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model. […] What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.

What has become known as the blockchain is one of the core components of the underlying technology that enables such a system.

A blockchain is a radical digital concept about data storage. In it data is organised in blocks which get chained together programatically using cryptography. As blocks of data get chained together in a virtually unbreakable manner over time the stored data becomes immutable: it can never be changed again. 

Each block of data succesfully added to the blockchain is made up of multiple components: each block will contain, among other things: a list of recent transactions within the network and a reference to the block previously committed to the blockchain, as well as a registered solution of a complex mathematical problem generated as part of the process known as “Mining”.

Crucially, any and all the data stored in the blockchain is always publicly available to anyone—now or in any point in the future—exactly as it was added to the blockchain. This setup is quite revolutionary: through it it is possible to keep track of all sorts of records—from money balances, identities, property rights, medical records—without the risk of someone tampering with these records. If you were to buy a car tomorrow and added a photo of the document proving your ownership to a blockchain, you would always be able to prove that you owned that car at some point. Nobody can change information that has been committed to the blockchain: the blockchain is the best way we have by far to save data and make it immutable .

In summary: the blockchain is a potentially endless growing list of data records (a chain of blocks); a distributed and public digital ledger in which data that is cryptographically connected and secured. 

What are cryptocurrencies?

Cryptocurrencies are digital currencies with some crucial differences. Their primary purpose—as a type of digital asset used to store value—nevertheless is the same: they work as a medium of exchange. 

Cryptocurrency systems are generally decentralised and are maintained by a distributed network of computers (nodes), which—located all around the world—make up what is known as a peer-to-peer (P2P) network. Different P2P networks enable different degrees of decentralization. As a result some cryptocurrencies are more decentralised than others—where the level of decentralisation basically depends on the structure and nodes distribution of the network. 

Decentralisation means that cryptocurrencies cannot be controlled by a single entity and thus do not and cannot rely on the type of central authority wielded governments or banks. When it comes to cryptocurrencies in their purest form, any financial transactions taking place occurs directly between users (P2P) without the need for intermediaries, or trusted third parties.

Unlike centralised economic systems, the issuance and management of cryptocurrency units are determined by the network architecture of a given cryptocurrency based on its programmed algorithms and cryptographic proofs. The predefined set of rules that define how a cryptocurrency system operates is generally referred to as the consensus protocol. 

All transactions taking place within a given cryptocurrency network are verified through the communication of network nodes. Transactions that are accepted and confirmed by the network are permanently recorded in a public distributed ledger, know as the blockchain. The blockchain is one of the core components and underlying technology of any cryptocurrency system—and yes: each cryptocurrency has with its own unique blockchain.