KYC procedure at HashFlare and security of your data
Following the introduction of the user verification procedure in July, we received quite a few questions regarding the need of providing data, their security, confidentiality, and the possibility of using them in some sort of illegal actions.
We have decided to put an end to this guesswork around verification and explain once again why passing the KYC procedure is necessary, and also answer the most frequently asked questions.
1. Why should I pass the KYC verification? It was not required when I registered, why do it now?
Since we are committed to following applicable laws and regulations, the innovation is aimed at ensuring compliance with AML directive and procedures — so for us to continue providing existing services, we need to identify our users.
For your information
KYC — Know Your Customer
AML — Anti-Money Laundering
Both terms are related to the legal field and are used in all countries where respective legal restrictions and/or requirements apply (including in the European Union member states, within the jurisdiction of which HashFlare provides its services).
Since HashFlare is a service that handles customers’ money, according to national regulations, in order to continue providing services, we need to know our customers and the sources of funds coming to us.
KYC acts as a guarantor against fraud, as it significantly helps resolve any controversial issues. Let us note that the KYC procedure is now carried out not only by cloud mining services, but also by crypto exchanges, as well as by many of the most common crypto wallets.
2. I don’t want to give out my documents with my personal data, because then you can use them without me knowing. What if you take a loan in my name?
To pass the verification procedure, we ask you to send us scans/photos of your documents, which are not sufficient for using them for any third-party purposes. The situation where someone takes a loan in someone else’s name using scanned documents with someone else’s photo on them, is simply not possible in today’s conditions.
According to the terms and conditions of the GDPR, we guarantee that the personal data you provide us will not be disclosed to any third parties. For more information about what user data we collect and store, read our Privacy Policy.
For your information
GDPR — General Data Protection Regulation
In May 2018, the updated data protection regulations entered into force in 28 EU countries and replaced the personal data protection directive 95/46/EC from October 24th,1995.
The introduction of the GDPR has established strict liability for violation of the rules for processing personal data. Thus, according to the terms of the GDPR, in case of violation of data integrity, the penalty can be up to 20 million euros or 4% of the company’s annual global income.
That’s why the absolute security of your personal data and the elimination of any possibility of the slightest disclosure is our main priority and direct interest when working with documents for verification.
3. What should I do if I don’t want to pass the verification, as that requires sending you the documents?
Passing the second level verification, for which the provision of documents is required, is absolutely optional. To get the first level verification, you do not need to send your documents — just fill in all the required fields in your profile.
However, please note that only verified users can use the extended range of services, including an increased daily withdrawal limit.
For your information
Current withdrawal limits (as of 22.11.2018) are as follows:
We hope that this material will help clarify the situation regarding the KYC procedure at HashFlare. In summary:
1. Use of your data and/or scan/photo of documents for processing loans and other fraudulent activities is not possible.
2. Any disclosure of your data on our part will result in serious fines and consequences for us.
3. As a company, we comply with all applicable legal norms, laws and regulations established by state regulators.
To date, the speed of checking the documents for verification has increased, but the whole procedure still takes time. Since the introduction of KYC in July, our verification team has reviewed about 60,000 applications out of 90,632. We kindly remind you that you can significantly speed up the process of checking your application if you immediately send high-quality photos. Read about the requirements for documents and get familiar with the step-by-step instructions here.
