How to conduct KYC verification on p2p exchanges?

1. Ask the buyer to provide his personal identification documents and ask for video chat verification if needed It is important to conduct your own KYC verification when trading on p2p exchanges, this is a common practice that is adopted by users on centralized exchanges. This is because accounts with KYC verified status can easily be purchased on the internet and there is always a risk that you are trading with another person who bought the account. Ensure that the user's KYC name on ID / Passport is consistent with his/her bank account name. Do not trade with bank accounts which belong to non-verified names.

2. Checking the recent bank statement and looking out for suspicious activities Just like how banks require employment status and monthly salary from individuals when applying for credit cards, looking at bank statements can ensure that you are trading with a legit p2p dealer. Look at the overall amount in the account, and check on the main source of funds through recent bank statements. If there is a recent deposit which looks suspicious and the user is unable to explain the source of fund for that, cancel order immediately and avoid trading with the user. This is because scammers may use p2p exchanges as a way to exchange their illegal source of funds into cryptocurrencies. If there is no recent deposit into the bank account, it should be considered safe as chargeback and bank freeze should already occur if the funding is through illegal activities. The longer the amount has stayed in the bank account, the safer it is to trade with the user.

🍐 Trading on centralized exchanges or decentralized exchanges does not have a major difference, it depends on how careful you are when dealing with p2p traders on the platform. Remember the two steps and establish long-term relationships with quality merchants on the platform.