February 22, 2026
10 mins
Read more
October 12, 2025
October 12, 2025
There is a misconception about Web3 that people are sketchy, scammy, or hiding. But that’s not the case. It’s not about hiding; it’s about being privacy-conscious. With the rise of the internet, people share their personal data everywhere without even thinking about the risks. Meanwhile, regulation around user data is still being developed worldwide.
Web3 is one step ahead. It acknowledges the need for compliance but also protects data through privacy-conscious processes. In Web3, this is called KYC. Let’s unpack what it means in the context of crypto presales.
KYC stands for Know Your Customer. In crypto presales, it’s the process where investors provide basic identification, such as an ID, passport, or driver’s license, so the platform or launchpad can verify who they are and where funds are coming from. It’s not optional; it’s a compliance measure tied to the jurisdiction where the launchpad is registered.
Projects require KYC mainly to comply with anti-money laundering (AML) laws. It ensures funds aren’t being funneled into Ponzi schemes, fraud, or other illegal activity. But KYC isn’t just about regulation; it also builds trust. Investors know they’re not sending funds into a void.
The process is usually straightforward:
Centralized platforms (like IEOs on CEXs) usually demand stricter KYC because they’re heavily regulated. IDO launchpads, while decentralized, often utilize third-party Web3 compliance services, such as BlockPass.
For platforms, KYC ensures they are compliant with their local jurisdiction. For investors, it provides a safety net: in case of fraud, there’s a legal trail, and regulators can step in if necessary.
Web3 compliance services are designed differently from traditional finance. Instead of massive data collection, privacy-conscious providers like BlockPass store only the minimal required info, encrypt it, and allow users to control when and where their data is shared.
In some cases, data is deleted after verification. This means investors can meet compliance requirements without sacrificing full control of their information.
All parties receive benefits: investors, project founders, and the platform itself:
Non-KYC presales often have lower credibility. Without AML compliance, you could face fraud, rug pulls, or scams.
Additionally, tokens from these projects may struggle to get listed on major exchanges later, which can limit liquidity. Finally, without proper records, reporting income for tax purposes becomes harder.
No. Some presales avoid it altogether, especially in purely decentralized environments. But if a project avoids KYC, you should ask why. Most credible launchpads require it because it reduces risks for everyone.
Projects with serious backing, larger fundraising targets, or ambitions to list on centralized exchanges nearly always require KYC. It’s part of showing they’re committed to compliance and long-term sustainability.
KYC in crypto presales might feel like an extra step, but it’s a step that protects both investors and projects. The Web3 space proves that compliance and privacy can go hand in hand. Through services like BlockPass, you can verify your identity without losing control of your data.
At CoinTerminal, we use BlockPass for a privacy-conscious KYC process. Complete it once, and you’re ready to join our presales, no token staking, no token gating. We’re the first and only open-access IDO launchpad, and we even run a monthly crypto lottery where you can win big, even if you later request a refund.
This article is for educational purposes only. It is a general guide for founders and users navigating the Web3 space. It does not constitute financial advice. Always do your own research before making any investment decisions.If you want to learn more about raising funds or which IDOs to look into, our team is here to help. Feel free to reach out to us on Telegram at any time.
