KYC Compliance Requirements
Mandatory Compliance
Know Your Customer (KYC) verification is mandatory for all investors and must be completed before token purchase. This process ensures compliance with anti-money laundering regulations and securities laws.
1. KYC OVERVIEW
1.1 Purpose and Requirements
Know Your Customer (KYC) procedures are mandatory compliance requirements designed to verify investor identity, assess risk profiles, and ensure compliance with applicable financial regulations. The Bitcoin Corporation LTD implements comprehensive KYC procedures in accordance with:
- Financial Conduct Authority (FCA) regulations
- Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
- Proceeds of Crime Act 2002
- Financial Services and Markets Act 2000 (FSMA)
- International anti-money laundering (AML) standards
1.2 Verification Process Timeline
KYC verification typically takes 3-5 business days from submission of complete documentation. Incomplete or unclear documentation may extend the review period. Token purchase cannot proceed until KYC approval is granted.
2. REQUIRED DOCUMENTATION
2.1 Individual Investors
Individual investors must provide the following documentation:
| Document Type | Acceptable Forms | Requirements |
|---|---|---|
| Government-Issued ID | Passport, Driver's License, State ID | Clear, color scan, not expired |
| Proof of Address | Utility bill, Bank statement, Lease | Issued within last 3 months |
| Selfie Verification | Photo holding ID document | Clear, well-lit, ID readable |
| Accredited Investor | Financial statements, CPA letter | Meeting FCA sophisticated investor criteria |
2.2 Corporate/Institutional Investors
Corporate and institutional investors must provide:
- Certificate of Incorporation: Filed with appropriate jurisdiction
- Board Resolution: Authorizing the investment and signatory authority
- Beneficial Ownership: Identification of all individuals owning 25% or more
- Authorized Signatory ID: Government-issued identification for signing officers
- Good Standing Certificate: From jurisdiction of incorporation
- Operating Agreement/Bylaws: Current organizational documents
- Tax Identification: EIN or equivalent tax identifier
3. VERIFICATION PROCESS
3.1 Document Submission
All KYC documents must be submitted through our secure online portal with the following specifications:
- High-resolution color scans or photographs
- All text clearly readable and legible
- Complete document visible (no cropping of edges)
- File formats: PDF, JPG, PNG (max 10MB per file)
- No filters, editing, or alterations applied
3.2 Identity Verification Steps
Verification Workflow
| Step | Process | Timeline |
|---|---|---|
| 1. Document Upload | Submit required documents via secure portal | Immediate |
| 2. Automated Review | AI-powered document verification and fraud detection | 1-2 hours |
| 3. Manual Review | Human review of flagged or complex cases | 1-3 business days |
| 4. Background Check | Sanctions screening and PEP (Politically Exposed Person) check | 1-2 business days |
| 5. Final Approval | Compliance officer final review and approval | 1 business day |
3.3 Enhanced Due Diligence
Additional verification may be required for:
- High-value investments exceeding $500,000
- Investors from high-risk jurisdictions
- Politically Exposed Persons (PEPs) or their associates
- Complex corporate structures or beneficial ownership
- Unusual transaction patterns or funding sources
4. ACCREDITED INVESTOR VERIFICATION
4.1 Income-Based Qualification
Individuals qualifying based on income must demonstrate earnings exceeding $200,000 (or $300,000 joint with spouse) for the past two years with reasonable expectation of similar income in the current year.
Required Documentation:
- Tax returns for the past two years
- W-2 forms or 1099s for the past two years
- Current pay stubs or employment verification letter
- CPA verification letter (recommended)
4.2 Net Worth-Based Qualification
Individuals with net worth exceeding $1,000,000 (excluding primary residence) may qualify as sophisticated investors under FCA regulations.
Required Documentation:
- Personal financial statement
- Bank statements for all accounts
- Investment account statements
- Real estate appraisals (excluding primary residence)
- CPA verification letter or audited financial statements
4.3 Professional Qualifications
Individuals holding certain professional certifications may qualify as sophisticated investors:
- Series 7, 65, or 82 securities licenses
- Knowledgeable employees of private funds
- Directors, executive officers, or general partners of the issuer
5. DATA PROTECTION AND PRIVACY
5.1 Information Security
All KYC information is protected using industry-standard security measures:
- 256-bit SSL encryption for data transmission
- AES-256 encryption for data storage
- Multi-factor authentication for portal access
- SOC 2 Type II certified data centers
- Regular security audits and penetration testing
5.2 Data Retention and Disposal
KYC information is retained in accordance with regulatory requirements:
- Minimum retention period of 5 years after account closure
- Secure deletion using DoD 5220.22-M standards
- Annual review of stored information necessity
- Right to request data deletion where legally permissible
5.3 Information Sharing
KYC information may be shared only in the following circumstances:
- Regulatory examinations and compliance requests
- Law enforcement investigations with proper legal authority
- Court orders or subpoenas
- Third-party verification services (limited scope)
- With investor consent for specific purposes
6. PROHIBITED JURISDICTIONS
Restricted Countries and Territories
Token sales are prohibited to residents or citizens of the following jurisdictions:
- Countries subject to comprehensive U.S. sanctions (OFAC list)
- Countries with prohibitions on cryptocurrency transactions
- Jurisdictions where token sales would violate local securities laws
- High-risk jurisdictions identified by FATF
Current restrictions include but are not limited to: North Korea, Iran, Syria, Cuba, Crimea, and other sanctioned territories. This list is subject to change based on regulatory developments.
7. ONGOING MONITORING
7.1 Periodic Reviews
KYC information is subject to periodic review and updates:
- Annual review of investor information
- Transaction monitoring for unusual patterns
- Sanctions list screening updates
- Beneficial ownership verification for corporate accounts
7.2 Information Updates
Investors must promptly notify The Bitcoin Corporation LTD of any material changes:
- Changes in personal information (address, name, etc.)
- Changes in sophisticated investor status
- Changes in beneficial ownership (corporate accounts)
- Changes in control or management (institutional accounts)