Most countries have passed laws requiring Financial Services Providers (FSPs) to verify their customers' identities, whether they are individuals, companies, or another kind of legal entity. These laws – referred to as "know your business/customer" regulations – are driven by international cooperation to address money laundering and the financing of terrorism.
KYB laws typically require FSPs to screen prospective customers to confirm the exact nature of their business, their ownership, and their absence from any government blacklists and anti-money laundering databases. Once businesses are onboarded, FSPs must monitor for and report anomalous activity on their accounts to the authorities.
BVNK is not yet obliged to perform these roles, but the regulatory landscape is changing fast, and we are preparing for greater oversight. KYB, in any case, helps to protect our clients from fraudulent behaviour and other risks, and we believe it will spur the development of a more stable, mature market for digital assets globally.