Surprise KYC: Investors in Tezos' Troubled ICO Might Finally Be Fed Up

Tezos, the blockchain project that sought to fix crypto’s broken governance models, is at the center of talk about how to handle decentralized politics – just not in the way its founders had hoped.

On Sunday, the Tezos Foundation announced that it would be carrying out know-your-customer and anti-money laundering (KYC/AML) checks on investors who bought into its July 2017 initial coin offering (ICO). At that time, investors, who the foundation calls “contributors,” were not asked to provide any personally identifiable information when they bought $232 million worth of its crypto tokens – dubbed tezzies (XTZ) – making Tezos the largest ICO ever completed up to that point.

But now, as the blockchain industry has matured, “it has become best practice to verify that contributors meet basic KYC/AML criteria,” the Tezos Foundation announcement said.

A third party, U.S.-based TokenSoft, is handling the checks, and according to one Reddit user who said they’d completed the KYC/AML compliance, the check asked for a name, phone number, address, government-issued ID and a selfie.