What is KYC Light?

KYC Light, also known as Soft KYC, refers to a simplified version of the Know Your Customer (KYC) process. The KYC process is a procedure that financial institutions and other businesses use to verify the identity of their customers and ensure that they are not involved in illegal activities.

The KYC process usually involves collecting and verifying information about the customer, such as name, address and identification documents.

KYC Process

Meanwhile, more and more ethereum exchanges are required to offer KYC in the sign-up process for regulatory reasons. In a sign-up process, you have to prove your identity beforehand via ID documents before you are allowed to invest in ethereum.

Most people have no problem registering through a KYC process. However, you should not entrust your data to just anyone. If you look at the past, the sensitive data of customers was increasingly handled improperly. For example, various cyberattacks led to the theft and publication of ID or passport data at several exchanges.

KYC Light Process

KYC Light is a simplified version of the KYC process in which less information about the clientele is collected and verified. The goal of KYC Light is to balance customer convenience with regulatory compliance.

Buy Ethereum without Registration

Pocket makes it possible to buy ethereum without registration. In doing so, the ethereum wallet is linked to an IBAN address. As soon as a transfer is made with a specific purpose, ethereum are automatically sent to your ethereum wallet at the current price. This is called KYC Light and thus allows you an easier onboarding to invest in Ethereum.

KYC Light Process

With Pocket, you don't have to go through the whole KYC procedure when you sign up if you invest under CHF 1,000 (1,000 euros) in Ethereum daily or CHF 100,000 (100,000 euros) annually. With Pocket, you verify yourself once with a bank transaction (IBAN) and can even set up recurring ethereum purchases automatically with a standing order afterwards.

Through the bank transaction, Pocket knows your full name and the bank. Depending on the bank, the home address is also sent to us. Nevertheless, Pocket gets to see less sensitive data, such as no date of birth, nationality or passport photo, proof of address (electricity bill, etc.).

Many customers appreciate this method, as you provide less personal data, and at the same time it makes buying ethereum easier and faster.

Why is Pocket able to offer KYC Light?

Pocket is based in Switzerland and is regulated by the Swiss Financial Market Supervisory Authority FINMA. In Switzerland, there is a threshold as to which customers and clients of exchanges or brokers can make use of it and do not have to fully identify themselves.

The threshold, as mentioned above, is CHF 1,000 per day or 100,000 per year. In the case of full identification (KYC procedure) at Pocket, this limit does not apply.