Why is KYC Mandatory?

KYC, which stands for Know Your Customer, is a process that requires individuals or businesses to provide certain identification and verification documents or information when engaging in domain and hosting purchase. KYC is mandatory in many jurisdictions for various reasons:

Regulatory Compliance: Many countries have regulations and laws in place to combat cybercrime, online fraud, and misuse of online services. Requiring KYC documentation helps ensure that individuals or businesses are accountable for their online activities and helps prevent illegal practices.

Verification of Identity: KYC helps verify the identity of the individual or organization purchasing the domain or hosting services. This verification process helps establish trust and reduces the risk of fraudulent activities, such as domain theft or unauthorized use.

Fraud Prevention: Requiring KYC documentation adds an extra layer of security to prevent fraudulent purchases. It helps mitigate risks associated with stolen credit cards, identity theft, or other malicious activities that could harm the hosting provider or other customers.

Legal and Liability Concerns: Hosting providers may have legal obligations to adhere to certain compliance standards, privacy regulations, or data protection laws. Collecting KYC information can help them fulfill these obligations and mitigate potential legal risks.

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