KYC Policy
Phygitals Know Your Customer (KYC) policy detailing when identity verification is required, what information is collected, how it is processed, and your rights.
Overview
Phygitals is committed to maintaining a safe, compliant, and trustworthy platform for all users. As part of this commitment, we implement a Know Your Customer (KYC) program to verify the identity of users when required. KYC helps us prevent fraud, money laundering, and other illicit activities while ensuring compliance with applicable laws and regulations.
Our KYC process is designed to be as seamless as possible while meeting regulatory standards. Verification is performed on demand, meaning Phygitals may request identity verification at any point during your use of the platform. This page explains when KYC may be required, what the process involves, and how your data is handled.
When KYC Is Required
KYC verification on Phygitals operates on an on-demand basis. This means the platform reserves the right to request identity verification at any time, for any reason, at its sole discretion. Common scenarios where KYC may be triggered include, but are not limited to:
Pawn and lending: Before initiating a pawn loan against a vaulted card, you may be required to complete KYC verification.
High-value transactions: Purchases, sales, or withdrawals that exceed certain thresholds may trigger a KYC request.
Withdrawal of funds: Withdrawing funds to an external bank account or wallet may require identity verification, particularly for larger amounts.
Suspicious activity: If our fraud detection systems flag unusual or potentially suspicious activity on your account, KYC may be required to continue using the platform.
Regulatory requirements: Changes in applicable laws, regulations, or enforcement guidance may require us to verify additional users or re-verify previously verified users.
Account disputes: In the event of account recovery requests, ownership disputes, or support escalations, KYC may be required to confirm your identity.
Shipping physical items: Requesting shipment of physical collectibles from the vault may require identity verification to confirm the recipient.
You will be notified when KYC is required. Failure to complete the verification process within the specified timeframe may result in restricted access to certain features or a temporary hold on pending transactions until verification is completed.
Verification Process
The Phygitals KYC verification process is conducted through our third-party verification provider and involves the following steps:
Initiation: When KYC is required, you will see a prompt within the Phygitals platform directing you to begin the verification process. This may appear as a modal, banner, or notification depending on the context.
Government-issued ID: You will be asked to provide a clear photograph or scan of a valid, unexpired government-issued identification document. Accepted documents include passports, national identity cards, and driver's licenses.
Selfie verification: You will be asked to take a live selfie photograph. This is used to confirm that the person submitting the ID document is the same person who owns the account. Liveness detection technology is employed to prevent the use of static images or spoofing attempts.
Data submission: Your ID document and selfie are securely transmitted to our verification provider for automated and/or manual review.
Verification decision: You will be notified of the verification outcome. This typically occurs within minutes, though in some cases manual review may take longer (up to 24-48 hours).
If your verification is unsuccessful, you will be given the opportunity to retry. Common reasons for failed verification include poor image quality, expired documents, or a mismatch between the selfie and the ID photograph.
Information Collected
During the KYC verification process, the following information may be collected:
Full legal name as it appears on your government-issued ID.
Date of birth.
Nationality and/or country of issuance of the identification document.
Document type, number, and expiration date from your government-issued ID.
Photograph of the identification document (front and back, where applicable).
Live selfie photograph for biometric comparison.
Device and session metadata such as IP address, browser type, and device information, collected for fraud prevention purposes.
We collect only the information necessary to verify your identity and comply with applicable regulations. No financial information (such as bank account numbers or credit card details) is collected as part of the KYC process.
Data Handling
Phygitals takes the privacy and security of your personal information seriously. KYC data is handled in accordance with our Privacy Policy and applicable data protection laws. Key data handling practices include:
Encryption: All data transmitted during the KYC process is encrypted in transit using industry-standard TLS encryption. Data at rest is also encrypted using AES-256 or equivalent standards.
Limited access: Access to KYC data within Phygitals is restricted to authorized personnel on a need-to-know basis for compliance and fraud prevention purposes.
Retention: KYC data is retained for the minimum period required by applicable regulations. When retention is no longer legally required, data is securely deleted or anonymized.
No sale of data: Phygitals does not sell, rent, or trade your KYC data to any third party for marketing or commercial purposes.
Third-party processing: KYC data is processed by our verification provider (see below) under strict contractual obligations regarding data security and privacy.
Third-Party Provider
Phygitals uses Veriff (veriff.com) as our third-party identity verification provider. Veriff is a globally recognized identity verification platform trusted by major companies and financial institutions worldwide.
Key details about our identity verification process:
Processing: When you submit your ID document and selfie, this data is transmitted directly to our verification provider's secure infrastructure for processing. Our provider performs automated checks including document authenticity verification, facial biometric comparison, and liveness detection.
Data governance: Our verification provider processes your data as a data processor acting on behalf of Phygitals. Our provider is contractually obligated to handle your data in compliance with applicable data protection regulations, including GDPR where applicable.
Certifications: Our verification provider maintains industry-recognized security certifications and undergoes regular independent audits to ensure the integrity and security of its systems.
Provider privacy policy: Our identity verification provider maintains its own privacy notice governing data it processes on our behalf. Details about the provider's data handling practices are available upon request.
By completing the KYC process on Phygitals, you consent to the transmission of your verification data to Veriff for the purposes described above.
Your Rights
Depending on your jurisdiction, you may have certain rights with respect to the personal data collected during the KYC process. These may include:
Right of access: You may request a copy of the personal data we hold about you, including data collected during KYC.
Right to rectification: If your KYC data is inaccurate or incomplete, you may request that it be corrected.
Right to erasure: You may request the deletion of your KYC data, subject to our legal retention obligations. Note that deleting KYC data may result in the loss of access to features that require identity verification.
Right to restrict processing: You may request that we limit the processing of your KYC data in certain circumstances.
Right to object: You may object to the processing of your KYC data in certain circumstances, though this may affect your ability to use KYC-dependent features.
Right to data portability: Where technically feasible and legally applicable, you may request your KYC data in a structured, machine-readable format.
To exercise any of these rights, please contact us using the information provided below. We will respond to valid requests within the timeframes required by applicable law.
Contact
If you have questions about our KYC policy, the verification process, or wish to exercise your data rights, please contact us:
Support: [email protected]
Legal: [email protected]
For privacy-specific inquiries or data protection requests, you may also reach our data protection team at [email protected].
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