Although ICO companies, e.g. in Germany, are only obliged to identify customers themselves under certain conditions, they are always obliged to support their banks in fulfilling their identification obligations. This means that they must provide the bank with all the information about investors to the full extent that the bank requires. In view of the potentially large number of investors in an ICO, this is a considerable expense for any ICO company. This can be difficult because an ICO is usually a one-off event, the documentation obligations can be complicated for individual investors and all of these activities are not core business practices for many companies. In this respect, KYC service providers have established working business models that efficiently manage the identification process on behalf of their customers, gather experience from many ICOs and satisfy all the banks needs. In addition KYC services can be combined with equally important obligations such as AML and white and/or blacklisting. This relieves ICO companies of a considerable amount of both work and time. In this respect, outsourcing KYC identification obligations should be a priority option for all ICO companies.
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