Traceto: How Are They Going To Know Their Customers?

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If you have ever dealt with any financial institution as an investor or a money borrower, you are definitely familiar with a nerve-wracking and time-consuming Know Your Customer (KYC) procedure. KYC is a regular practice conducted by financial organizations when they try to establish the identity of their customers prior having any relationships with them. This is done not only to better understand the needs of their customers but rather to avoid being involved in money laundering schemes, different frauds, terrorism financing, and other illegal activities. Say, banking entities just want to stave off any presumed risk resulting from partnering with a specific customer.

With a rise of non-fiat currencies, blockchain projects, and ICOs, the necessity of having KYC standards for the crypto world is imperative. This is where Traceto comes to the scene. A startup from Singapore, Traceto presents a decentralized, inclusive KYC platform for companies engaged in crypto business. The Traceto’s vision is to combine the blockchain and artificial intelligence technologies to make the electronic KYC process extremely efficient and quick.

What Problem Does The Project Solve?

Since cryptocurrencies and digital assets are a relatively new form of business, many crypto companies and blockchain market participants fail to meet the KYC standards required for financial entities. Such a failure projects serious problems including lack of compliance, compromised data security, slow manual, error-prone identity verifications, information leakage, the vulnerability of private information to hacker attacks, a risk of funding illicit activities, and a myriad of others.
Traceto introduces an inclusive KYC-solution to enable ICOs, cryptocurrency exchanges, and other crypto enterprises to address AML (anti-money laundering) and CTF (Counter-Terrorism Financing) problems and stay perfectly compliant with federal and international regulations by automating the whole E-KYC process. The KYC process proposed by Traceto will be based on answering the four main questions:

  • Who are you? At this point, the Traceto dapp will determine and verify an identity of a customer through an uploaded passport, driving license or any other similar ID document.
  • What did you do? Traceto’s smart contracts will monitor transactions of a prospective customer for suspicious activities and identify the source of his/her incomes.
  • Who are you not? The Traceto platform will be able to detect politically exposed persons, terrorists, people under sanctions, and those who publish adverse media in their social profiles.
  • Are you still who you say you are? This element of Traceto infrastructure will perform regular due diligence to make sure a customer’s identity and activities stay legally sound.


How will Traceto Work?

Traceto will take the best practices from the real-world KYC standards and implement them into the virtual financial world. In other words, they will develop a decentralized virtual KYC network which the cryptocurrency community can use to control and manage their KYC processes and stay compliant with regulatory requirements.

The platform will function in the following way:
Imagine you are interested in taking part in some ICO project or join to some cryptocurrency exchange. For this, you need to register with them and undergo a KYC procedure. In such a scenario, you will be redirected to the Traceto dapp, where a started KYC process will continue. You will be asked to provide your identification documents, which then will be encrypted and safely stored within the system. These documents are then shared with Traceto’s Artificial Intelligence algorithms and KYC provider. AI algorithms analyze your profile as a customer and then allow or screen out you from joining this or that cryptocurrency project. These algorithms also monitor all the transactions made by you as a customer.

What Kind Of Users Will Be On The Traceto Platform?

There will mainly be three categories of users in the Traceto network:

  • Corporate Requesters (crypto wallets, exchanges, ICOs, and any other crypto entity) which need KYC services from Traceto;
  • Individuals who have successfully completed a KYC procedure from Traceto;
  • Verifiers are trusted users who stake some T2T coins (cryptocurrency of Traceto) to have a right to perform KYC procedures and earn some coins for their job. Verifiers will also be a kind of gatekeepers to the users’ information.


The E-KYC market is in its infinite phase because the cryptocurrency is just trying to gain worldwide adoption. This means that the Traceto product with its idea to create an inclusive decentralized KYC platform has all chances to be much-in-demand with electronic wallets, blockchain startups, ICOs, and other representatives of the cryptocurrency business which strive to stay compliant and avoid having partnership relations with suspicious customers.
Traceto token sale starts 8 of june. Click here for the guide how to contribute via GBX platform

Traceto additional links:
Website | Whitepaper | Telegram | Twitter | Facebook | Blog
Authored by: Will.Smith (@iwgeiw)

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