Customer Identification Program

A Customer Identification Program (CIP) in the context of cryptocurrencies refers to a set of procedures implemented by cryptocurrency businesses, such as exchanges and wallet providers, to verify the identity of their customers. The primary goal of a CIP is to prevent money laundering, terrorist financing, and other illicit activities by ensuring that businesses have accurate and up-to-date information about their customers.

A typical CIP may involve collecting information such as the customer's name, address, date of birth, and government-issued identification documents. Cryptocurrency businesses may also use additional verification methods, such as Know Your Customer (KYC) procedures, to further authenticate the identity of their customers.

By establishing and maintaining a robust CIP, cryptocurrency businesses can comply with regulatory requirements, mitigate risks associated with financial crimes, and maintain the integrity of their operations.