Whilst the younger, more visionary side of the ICO founder spectrum is delighted to escape the repressive world of fiat banking, even the greatest maximalists amongst them admit that the transition to a purely crypto economy is several years away, and that companies are still in need of a traditional banking solution. On the enterprise side of the spectrum, ICO banking is usually in the top three requests by our clients.
In the early days of the ICO market where most banks had yet to hear about initial coin offerings most ICOs were happy to hide their activities and tolerated the risk of retribution from their bank, with many of them having their bank accounts frozen in a matter of months. ICO Malta is in a privileged position to set up our clients with crypto friendly banks which guarantee the bank account for the duration of the ICO, provided that the right KYC and AML processes are in place during the crowdsale.
ICO banking solutions
ICO Malta has contacts with multiple EU banks, who can provide corporate banking solutions to our clients, providing them with the advantage of accepting wire transfers during their ICO. This eliminates a significant barrier to entry to traditional and institutional investors who are looking for exposure to the cryptocurrency markets, yet struggle with the process of acquiring ETH/BTC via exchanges, setting up wallets and transferring cryptocurrency to acquire their tokens.
ICO KYC, AML and whitelisting
The ICO Malta technology stack provides two levels of user verification. The basic KYC process is unintrusive and simply requires the user to submit their information, following which it is verified through third party databases that verify the user’s identity as well as running is against PEP, sanction, watch and wanted lists. This solution is extremely cost effective with the ICO only being charged for successful checks (eliminating the costs associated with spam attempts).
Our extended due diligence package provides banking level due diligence for ICOs, and involves the user uploading their documents to the platform, following which an operator requests a webcam session to verify that the user is in actual possession of the documents. The video session is stored for five years, and this package comes with a complete legal indemnity, with our KYC partner assuming all liabilities that may arise.
Following the collection of documents and user verification phase our team will proceed to create a whitelist of alla proved contributors, satisfying our banking partners criteria ICO KYC/AML requirements.