The Know Your Vendor (KYV) Initiative
Our way of improving the Crypto-Wolrd!
In our economic world there are many regulations, laws and certifications – which need to be achieved by some corporations depending on the business niche. This is to ensure security for the business company, customer and for the future of their contracts. These rules make the economic sector more or less secure.
Regulations in the Cryptocurrency World
This is a complex subject. On one side, we want a decentralized virtual currency with no real regulator (no banks, no owner, no middleman).
On the other side, there is no real security for one besides the faith in the own Bitcoin wallet. If the crypto wallet company gets hacked or just disappears for some other reason, one can’t really do anything to get his or her Bitcoins back. On this dark side of the cryptoworld there are so many crimes that it feels like it is the ‘Wild West’.
We want to tackle the problem of the many scamming Bitcoin Cloud Mining & HYIP providers. The number of scammed people gets more and more each day – and we see our mission to help everyone by reducing the growth of this number.
The community, our motivation
I think from now on, Coinstaker should be conducting inspections of physical addresses & meeting these “so called Website operators” In person to legitimize the websites true purpose. If they cannot be visited nor investigated, They should never be added on here.Robert
Our Answer and Proposal – the ‘Know Your Vendor’ Certificate by CoinStaker
We had the idea to develop something similar to the Know Your Customer verifying process. While brainstorming with the CoinStaker-Team, we came up with 4 levels:
- Level 0: Waiting for Response
- Level 1: Proof of Physical Address
- Level 2: Video Interview
- Level 3: Showcase of Business Equipment and Process
Level 0 – Waiting for Response
This level of security is awarded to everyone after us contacting them. So basically, all vendors start at Level 0.
We have the hypothesis, that we don’t need a lower level for the business people who decline to participate in our Know-Your-Vendor program, because those would probably not even respond to our proposition.
Level 1 – Proof of Physical Address
This is the first level of security we want to present to you. It’s about verifying the physical address of the service provider. If we take our monitored BTC-HYIPs, most of them state that they have a company registration and an address in London. Do we believe it? Well, until now we had no choice.
But now it gets slightly different – we will proof if the published address is really true – by sending representatives of CoinStaker and/or a two-step mail verification! So if they turn their websites vanish, we know where to go asking for explanation.
Level 2 – Video Interview
Level 2 = Level 1 + Video Interview. This means, that you need to pass the level 1 security to even get to the video interview (web cam). In this video interview, we want to get to know the business entrepreneur and see his or her real face. We will ask questions about their business plan and future forecasts. The video will be posted on our website.
We think, that Level 2 is already a significant sign of security – knowing the person and business place of the individual handling our precious Bitcoins should be made standard.
Level 3 – Showcase of Business Equipment and Process
For now this is the final stage of security we have thought of. Level 3 = Level 2 + a video showing the machinery (btc mining farm) + screen capture of their latest trades, winnings and losses.
We see Level 3 of the KYV as highest possible security for the moment. At this place we want to add a quote of Mike Tyson:
Everyone has a plan ’till they get punched in the mouth.
We think this would describe the situation very well – because everybody tries to win your confidence until they let you down.
So even with our high-level-criteria, you still need to be cautious.
List of CoinStaker approved Companies
Because everyone can say, that they are a CoinStaker-KYV-Approved firm, we have made a page, where all the level 1+ companies are listed. So please, before trusting them, always check the following list: