Getting Started

KYC (Know Your Customer)

Means that we as a company must verify the identity of our customers. Banks, exchanges, financial companies and crypto asset service providers must be absolutely certain that those using the services are actually who they claim to be – this must be done before one can become a customer. Usually, one must submit copies of passport, driving licence or proof of address to confirm identity. In Norway, we can use BankID, which makes the registration process both simpler and faster than in many other countries. A KYC check prevents criminals from hiding behind fake names and helps prevent the services from being used for money laundering attempts.

KYT (Know Your Transaction)

Means monitoring transactions to ensure that deposits and withdrawals are not used for illegal activities, such as money laundering, terrorist financing or other criminal activities. Here we look not only at the person, but at the actual flow of money. When you send or receive money or digital currencies, the transaction is checked against systems that detect suspicious patterns – for example, if the funds come from stolen assets or fraud. For digital currencies, wallet addresses and historical transactions are monitored against addresses previously flagged as suspicious. If a blockchain transaction has passed through such an address, it is stopped and isolated in a separate "vault". The funds cannot then be used, and responsible authorities are notified.

AML (Anti-Money Laundering)

Means "anti-money laundering". This is the overarching regulatory framework of which both KYC and KYT are part. The goal is to prevent criminals from using banks, exchanges, other financial institutions or transactions in digital currencies to "launder" dirty money – that is, to turn funds obtained from criminal activity and/or tax evasion into "clean" money.