KYC and Xumm (2024)

What is KYC?

KYC is short for Know Your Customer.

It is a requirement in the heavily regulated financial sector (such as banks, payment institutions, securities and also for virtual assets) to identify a client and then to verify the identity of the client.

Many governments have already imposed KYC on the crypto industry and are requiring that crypto exchanges and other service providers enforce the KYC process for their clients.

Do I have to go through the KYC process to use Xumm?

The short answer is no, not yet. It is for now, still entirely optional. Xumm is a non custodial wallet and those services are not yet regulated. However, countries and their national supervisors are working together in the Financial Action Task Force on Money Laundering (FATF) to introduce more obligations around virtual assets and virtual asset service providers in order to identify bad actors/people that use crypto for illegal purposes. Therefore, in time, KYC is expected to become more common/required.

Do I have to go through the KYC process to get an airdrop?

That depends on the airdrop. Some projects on the XRPL require that you go through the KYC process in order to participate. Normally, the project would provide the means to do this.

Why would I want to go through the KYC process if it's optional?

Many people feel that going through the KYC process is a way of adding legitimacy to their XRP Ledger account. At Xumm, we work together with professional partners to be able to properly identify and verify the identity of a person. The optional identification process already has many safeguards in place to make sure that it is the actual person registering... but there are always risks and uncertainties.

Which documents can I use to go through the KYC process?

The KYC process requires that you have an official government issued document to help identify who you are. For most countries, this means:

A valid passport
A valid driver's license
A valid ID card
A valid residence permit

For a current list of supported documents, please refer to this link:

https://www.veriff.com/supported-countries

What about Xumm Pro (Beta)?

When you subscribe to Xumm Pro Beta, you will have the option to go through the KYC process, however, only those who go through KYC will be able to access to the Pro Bea features like a Profile, PayString, uploading your avatar and showing your real name when sending payment requests. It will also be required if you want to use the on/off ramps for fiat.

Because we only want to support trustworthy profiles & to prevent imposters, your avatar & display name will be compared to your KYC government ID information. This way, everybody in the ecosystem will be able to trust other users and their profiles, names, avatars, if they have a Pro Beta subscription.

What about Xumm Pro with On-ramp and Off-ramp (fiat to XRP and vice versa)?

Note: On-ramp and Off-ramp is not yet available for all regions.

If you would like to use our On/Off-ramp feature, you will need to go through the KYC process in Xumm Pro. This is a requirement of the Dutch government under which we are regulated.

Will Xumm disclose my identity if I go through the KYC process?

Xumm does not disclose personal information to third parties, unless it is necessary due to legal obligations. We work together with industry experts to fulfil our commitment in building and maintaining a safe XRP ecosystem. In our privacy statement, you will find the personal data we process and the grounds for processing.

Can I go through the KYC process using a "read only" account in Xumm?

Since anyone can import an XRPL account into Xumm as "read only", there is no way for us to verify that you own the account unless your have full signing access to it. (This is also why you can not go through the KYC process on an account that has been blackholed.) The idea behind KYC is to verify your identity and associate this verification with an XRP Ledger account that you own. In order to do that, you need to have "full access" to your XRPL account. This means that you know the secret keys for your account and you have imported them into Xumm.

How do I go through the KYC process?

In Xumm Pro Beta, simply click on the Open KYC xApp and follow the instructions on the screen.

If you do not have a Pro Beta subscription you still have a couple of options:

1) GlobaliD - You can create an account here: https://global.id/ and go through the KYC process by following the instructions in this article:

How to add your XRP Ledger account address verification credentials (attestation) to your GlobaliD identity profile

2) Veriff or other KYC providers - There are several KYC providers in the industry providing KYC services.

I went through the KYC process in Pro but I can't see it in Xumm.

Xumm does not currently have a place to verify that you went through the KYC process. (We assume that you already know that you completed it so there is no reason to display it. )

...but just in case, here are a couple of ways to check:

You can visit this site: https://bithomp.com/ and enter your r-address and look for: Xumm: verified √

Where can I learn more about the Global ID and the KYC process?

I went through the KYC process with Global ID, why do I need to go through it again with Xumm Pro (Beta)?

Xumm is a separate company from Global ID, and we have our own legal obligations that we need to meet. We cannot obtain the information gathered by Global ID to perform our own identification and verification. We need to do this ourselves as we need to ensure all documents are current and up to date.

You've mentioned Xumm Pro (beta) a couple of times, where do I learn more about it?

We are super excited about the release of Xumm Pro Beta! 🎉. You can learn all about it here:

Welcome to Xumm Pro Beta! 🎉

Notes

We understand that you might have additional questions regarding this topic so you are welcome to contact us any time via the Xumm Support xApp in Xumm or you can simply scan this QR code with Xumm and be directed there automatically.

As an enthusiast deeply immersed in the world of decentralized finance and blockchain technology, I've actively engaged with various aspects of the crypto ecosystem, staying informed about the latest developments and regulatory changes. My expertise extends to topics such as Know Your Customer (KYC) procedures, non-custodial wallets, and the evolving landscape of virtual assets. I've closely followed the intersection of traditional finance and crypto, understanding the implications of regulatory measures on platforms like Xumm.

Now, let's delve into the concepts mentioned in the provided article:

KYC (Know Your Customer):
- KYC is a regulatory requirement in the financial sector, including banks, payment institutions, securities, and virtual assets.
- Governments are increasingly imposing KYC regulations on the crypto industry to identify and verify clients.
Xumm:
- Xumm is a non-custodial wallet that, at the time of the article, doesn't enforce KYC as it operates in a regulatory gray area.
- The article suggests that KYC might become more common or required in the future as countries collaborate through the Financial Action Task Force on Money Laundering (FATF).
KYC for Airdrops:
- Whether KYC is required for airdrops depends on the specific project on the XRPL (XRP Ledger). Some projects may mandate KYC for participation.
Reasons for KYC in Xumm:
- The article outlines that some users opt for KYC to add legitimacy to their XRP Ledger account, working with professional partners for identification and verification.
Supported Documents for KYC:
- The KYC process typically requires official government-issued documents, such as a passport, driver's license, ID card, or residence permit.
Xumm Pro (Beta):
- Xumm Pro Beta introduces optional KYC processes, unlocking features like a profile, PayString, and avatar upload. It may become mandatory for on/off ramps for fiat.
On-ramp and Off-ramp (fiat to XRP and vice versa):
- KYC is required for the on/off-ramp feature, a requirement imposed by the Dutch government under which Xumm is regulated.
Privacy and Identity Disclosure:
- Xumm assures users that personal information is not disclosed unless legally obligated. The platform collaborates with industry experts to maintain a secure XRP ecosystem.
KYC Process for Read-Only Accounts:
- KYC is only applicable to accounts with full access, where the account holder has full signing access and ownership of the XRPL account.
How to Go Through the KYC Process:
- In Xumm Pro Beta, users can click on the Open KYC xApp and follow on-screen instructions. For non-subscribers, alternative options like GlobaliD or other KYC providers are mentioned.
Verification of KYC Completion:
- Xumm does not currently display KYC completion within its interface. External platforms like Bithomp or XRPScan may indicate "Xumm verified" status after KYC completion.
GlobaliD and KYC Process:
- Users are directed to GlobaliD for KYC, but Xumm emphasizes the need for a separate KYC process within Xumm Pro Beta due to legal obligations and the necessity for up-to-date information.
Xumm Pro Beta Information:
- Information about Xumm Pro Beta, its features, and subscription details are available for users interested in the enhanced services.

In conclusion, the article provides a comprehensive overview of KYC processes, the evolving regulatory landscape for crypto, and the specific procedures and features associated with the Xumm platform and its Pro Beta version. If you have further questions or need clarification on any of these topics, feel free to contact Xumm Support.