The KYC Procedure on SimpleSwap
4 min readMar 21, 2019


SimpleSwap is a project created for the convenience of the customers. It has proven itself as a user-friendly and easy-to-use platform for cryptocurrency exchanges that work without registration and limits. Our users don’t need to create accounts or store deposits at SimpleSwap. However, there are exceptions. SimpleSwap collaborates with a number of partners who, according to their risk assessment and European AML (anti-money laundering) directives, can request a photo of a valid ID and information about the origin of your coins. This is only necessary in order to make sure that your coins are not subject to illegal activities, such as theft, money laundering, and any other criminal operations.

In the modern world, strengthening the fight against criminally acquired assets has become topical for the international community. Therefore, specialized international organizations are introducing new standards that oblige financial and administrative structures to scrutinize their potential customers. Financial organizations, accounting, and legal offices that accompany the activities of commercial structures remain customer-oriented. But being monitored by regulatory agencies, we are forced to slightly deviate from the principle of complete loyalty and anonymity. Otherwise, if certain indulgences are detected, these organizations are threatened with serious sanctions.

SimpleSwap does not approve avoiding anonymity, but we live by the rules of the market.

Since we are partners with many different exchanges, occasionally we are obliged to ask our customers to pass the KYC procedure, because this is the generally accepted, imposed rule. We want to be honest with our customers, so below we will tell you in detail about the procedures that may be used.

One of the most common international control standards is the Know Your Customer (KYC) principle, which is part of the Anti Money Laundering (AML) policy.

Know Your Customer, or KYC is a set of identification operations used by participants in financial markets to counter fraud, theft, money laundering and the financing of illegal operations. For KYC cryptocurrencies and blockchain are a relatively new scope of use, but identifying investors and developers is becoming an integral part of the development of large and successful projects.

The KYC provides the distribution of the investment platform, helps with legalization and avoidance of sanctions and fines, gives the financial structure the opportunity to protect their interests. It verifies the identity of the customer, allows the security service to determine the risk of engaging the customer in illegal activities and to set a filter that controls the type and number of transactions for a particular customer in order to manage own risks.

Thus, the KYC customer identification policy is a kind of protective mechanism for both customers and the exchange platforms. It clearly structures the permissibility of the relevant financial transactions and protects both parties from possible penalties.

A reasonable question may arise — why would a cryptocurrency buyer need to identify himself and why would the project need it? By asking the customer to pass the KYC procedure, the exchange service reduces the risks associated with this customer. Knowing where they get their income, and having their financial portfolio helps the exchange to avoid getting connected with customers who have performed suspicious transactions or are involved in illegal activities.

Although checks can be a burdensome process for an exchange service, they create a safe and secure environment that allows to safely conduct financial activities. Thanks to KYС, customers can be confident that they make exchanges with a legitimate service, which is the key to building trust between the customer and the platform.

We studied this issue with the lawyers and we have developed a system that checks all incoming transactions according to a variety of criteria. Thus, we have come to a decision that complies with all the norms of the crypto world and does not force us to stop the funds of our customers.

Our risk assessment system operates because of our partners who are not ready to abandon it, and this means that in some cases the deposit can be marked as risky and stopped. The customer is requested to confirm their identity and answer a few questions. We do not disclose the details of determining a suspicious customer in order to prevent attempts to deceive the algorithm.

Each case is handled individually. If a customer is eligible for the KYC procedure since their transaction had been marked as suspicious, they are informed of that with notification after the exchange has been submitted asking the customer to contact the support team. KYC procedure includes confirming the identity of customers with:

  • a high-quality photo of any identification document valid in their country or internationally;
  • proof of source of deposited funds;
  • a selfie of the customer holding their ID and a print-out of the note provided by the support team.

When we receive the following materials, we complete the exchange, and the funds are then sent to the specified recipient wallet address.

If the customer does not want to go through the KYC procedure, the funds will be immediately returned to the customer at the original address. We have ensured that the retention of the customer’s coins is unacceptable.

Any exchange will either be completed or the coins will be returned back to the customer immediately.

In case SimpleSwap receives suspicious documents, contact details or other false information, the crypto assets will be returned to where it originated. SimpleSwap reserves the right to forward the information collected during KYC procedure to the authorities upon legitimate request.

Summarizing all the above, we can say that if you are an honest customer, and are not associated with illegal activities, you have absolutely nothing to be afraid of, and your crypto will always be safe with SimpleSwap. We hope that this KYC scheme suits everyone and thank you for understanding.

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