Understanding KYC on HIFI

Know Your Customer (KYC) is an essential process that financial institutions use to verify the identity of their clients. This process is a critical component of anti-money laundering (AML) compliance and helps prevent financial crimes such as fraud and terrorism financing.

Why is KYC Important?

KYC procedures are not just regulatory formalities; they are proactive measures to ensure the safety and integrity of financial transactions. By verifying the identity of users, HIFI ensures a trustworthy environment for all its customers. It also limits the potential misuse of the platform for illicit activities.

KYC on HIFI: A Step-by-Step Guide

To complete the KYC process on HIFI, follow these steps:

Getting Started: Create a HIFI User Object

Creating a user object on HIFI is quick and simple using the Create User endpoints. When creating a user, you specify the KYC level you want the user object to have, along with the required Personally Identifiable Information (PII) needed for that KYC level.

KYC Level 1

Level 1 verification requires you to provide basic personal information, such as your name, date of birth, and IP address. At this level, you can transfer crypto on-chain with minimal restrictions. However, you won't be able to onramp from fiat to crypto or offramp from crypto to fiat for most currencies. Look here for the rails that are supported for KYC Level 1.

KYC Level 2

At Level 2, you are required to provide more comprehensive information and documents for verification. This typically includes submitting a valid government-issued photo ID, such as a passport or driver's license. At this level, you gain access to additional features on the platform, including the ability to onramp from fiat to crypto and offramp from crypto to fiat. Look here for the rails that are supported for KYC Level 2.