KYC on Nextoken Capital: What to Expect, Step by Step

Every investor on Nextoken Capital completes Know Your Customer verification before they can buy a token. This isn't optional and it isn't a formality — it's the legal underpinning that lets us operate as a regulated platform under EU rules, and it's the mechanism by which your wallet becomes eligible to hold ERC-3643 security tokens.

This post walks you through exactly what KYC looks like on Nextoken Capital, what documents you'll need, what the tiers are, how long it typically takes, and what to do if something doesn't go smoothly.

Why KYC exists

Two reasons.

The first is that ERC-3643 security tokens are permissioned. The token contract checks, at the moment of every transfer, whether the receiving wallet is on the whitelist for that token. The whitelist is maintained by linking each wallet address to a verified identity. No verified identity means no whitelist entry means the token contract will refuse the transfer.

The second is that EU anti-money-laundering law requires regulated financial entities to know who their customers are. The Sixth Anti-Money-Laundering Directive (6AMLD) and the FATF Travel Rule apply to crypto-asset service providers operating in the EU. The platform must verify your identity, screen you against sanctions and politically-exposed-persons lists, and re-screen continuously while you remain a customer.

In other words: KYC is what makes the rest of the platform legal. It's not a hurdle to investing; it is the prerequisite for being able to invest in regulated tokenized assets at all.

Who does the verification

Nextoken Capital partners with Sumsub for identity verification. Sumsub is a global KYC and AML provider used by hundreds of regulated financial platforms; if you've completed KYC on a major European exchange or fintech, there's a reasonable chance you've already encountered them.

Sumsub handles:

• Document authenticity verification (is this passport real, has it been tampered with).
• Biometric face matching (does the live selfie match the document photo).
• Liveness detection (are you a real person in front of the camera or a printed photo).
• Sanctions screening against EU, UN, OFAC, and other major sanctions lists.
• Politically Exposed Persons (PEP) screening.
• Adverse media screening.
• Ongoing monitoring while you remain a customer.

The data Sumsub collects is encrypted, stored according to GDPR requirements, and accessible to Nextoken Capital's compliance team for the purposes of supervisory compliance. It is not used for marketing and is not sold to third parties.

The three verification tiers

Nextoken Capital uses a tiered model so that you can start small without going through the full enhanced-due-diligence process.

Tier 1 — Basic verification

What you need:

• A valid government-issued photo ID (passport, EU national ID card, or driver's license)
• A device with a working camera

Process:

• Photograph the front of your document. Most modern phones can do this directly through Sumsub's interface.
• Photograph the back of your document if it has data on the back (most ID cards, some licenses).
• Take a live selfie. Sumsub will ask you to perform simple actions (turn head, blink) to verify liveness.
• Submit.

Typical timing: 2-5 minutes to submit, 1-15 minutes for verification to complete in the majority of cases. Some submissions are reviewed by a human and can take up to 24 hours.

Investment limit: Up to €1,000 cumulative across the platform.

Tier 1 is sufficient if you want to dip your toes into the platform with a single small position.

Tier 2 — Standard verification

Additional requirements over Tier 1:

• Proof of residential address — a utility bill, bank statement, or government letter dated within the last three months. The document must show your name and your address.
• Source-of-funds declaration — a simple question about where the funds you're investing originated (salary, savings, business income, inheritance, sale of assets, etc.).

Typical timing: Add another 1-3 business days for human review of the address document.

Investment limit: Up to €50,000 cumulative.

Tier 2 is the right tier for most retail investors planning to build a diversified portfolio of tokenized assets.

Tier 3 — Enhanced verification

Additional requirements over Tier 2:

• Source-of-wealth documentation — bank statements showing salary deposits, business accounts, sale documents for major assets, inheritance documentation, or similar. The level of documentation scales with the amount you intend to invest.
• Enhanced PEP screening — for individuals who are themselves politically exposed or who are close associates of politically exposed persons. We may request additional explanation of the relationship.
• Potential video interview — for very large positions, our compliance team may conduct a brief video interview to verify identity and source of funds. This is rare and only triggered above defined thresholds.

Typical timing: 3-10 business days, depending on the complexity of the source-of-wealth documentation.

Investment limit: Cumulative limit removed; per-transaction limits may apply for AML/CFT monitoring purposes.

Tier 3 is for high-net-worth and institutional investors.

Institutional KYB

If you are investing through a legal entity (a company, a trust, a fund), the process is different — it's Know Your Business (KYB) rather than Know Your Customer. The verification covers:

• Incorporation documents of the entity.
• Articles of association or equivalent constitutional documents.
• Identification of all ultimate beneficial owners (UBOs) holding 25% or more.
• KYC of each UBO and of authorised signatories.
• Sanctions and PEP screening of the entity and its principals.
• Assessment of the entity's source of funds and source of wealth.

Institutional onboarding typically takes 5-15 business days depending on the complexity of the structure. We recommend starting the process before you have a specific investment opportunity in mind.

Common reasons for rejection (and how to avoid them)

Most KYC submissions succeed on the first attempt. The most common reasons for rejection, in order of frequency:

Glare on the document photo. Hold the document at an angle and capture in good ambient light. Avoid direct flash. Avoid plastic glare from laminated documents.

Document type not accepted. We accept passports, EU national ID cards, and driver's licenses. We do not accept student IDs, library cards, or expired documents. Make sure your document is current and is one of the accepted types.

Selfie doesn't match document. Make sure you're using the same lighting and the same face orientation. Don't wear sunglasses, a hat, or anything else that obscures your face. If you've had a major change in appearance (significant weight change, beard growth) since the document photo, it can confuse the matcher; in that case, contact support and we can review manually.

Address document doesn't show your name and address. A receipt from your phone bill might show your name but not your address, or vice versa. Make sure the document clearly shows both, and that it's dated within three months. A bank statement is usually the safest.

Address document is in a different language. This is generally fine, but our human reviewers may take longer to verify. If your document is in a non-Latin script, expect a couple of extra business days.

Document is from a high-risk jurisdiction. Some jurisdictions are on the EU's high-risk-third-countries list and trigger enhanced due diligence regardless of tier. We can still complete verification but it will involve additional documentation.

Sanctions or PEP hit. A positive screening hit results in a hold pending compliance review. False positives happen (your name might match a sanctioned individual's name). We review every hit and, where it's a false positive, complete the verification with appropriate documentation. Where it's not a false positive, we cannot complete the verification.

What happens after KYC

Once your KYC is approved at any tier, three things happen automatically:

1. Your wallet address is added to Nextoken Capital's investor whitelist. From this point, you can receive ERC-3643 security tokens. 2. Your investment limit is set based on your tier. 3. Continuous monitoring begins. Sumsub re-screens your identity against updated sanctions and PEP lists every 24 hours. If anything changes, our compliance team is notified.

You can upgrade tiers at any time by submitting the additional documentation. You don't have to redo Tier 1 to add Tier 2 evidence.

You can change your wallet address by completing a wallet-rotation process: prove ownership of the new wallet (sign a message with the new wallet's private key), and we transfer your whitelist registration to the new address. Existing holdings are migrated to the new wallet at the same time.

Privacy and data handling

Your identity documents and biometric data are encrypted and stored according to GDPR Article 9 requirements applicable to special-category personal data.

Access is restricted to:

• Sumsub's verification systems.
• Nextoken Capital's compliance officers, only when needed for supervision.
• Regulatory authorities, on lawful request.

We do not share your identity data with marketing partners, the asset issuers whose tokens you buy, or any other party. Issuers see only that a verified investor with a certain wallet address has acquired tokens; they do not see your name, address, or documents.

Retention period for KYC records is governed by Lithuanian and EU AML law: eight years from the end of the customer relationship.

You have full GDPR data subject rights: right to access, right to rectification, right to erasure (subject to the AML retention requirements that override erasure during the retention period), right to data portability. Submit requests to privacy@nextokencapital.com.

If you need help

If something doesn't go right with KYC — a rejection you don't understand, a hold that's lasting longer than expected, a question about a tier upgrade — contact our compliance team at compliance@nextokencapital.com and we'll respond within one business day.

For general questions about the verification process, the Help Center has answers to the most common questions, and our chatbot in the bottom-right of the site can answer questions in any of the 44 supported languages 24/7.

Bottom line

KYC on Nextoken Capital is fast for most users (under five minutes to submit, often under an hour to verify), respects your data, and is the gateway to a regulated investing environment. The platform's compliance is real, the protections it provides are real, and the trade-off — you tell us who you are, we let you invest in regulated tokenized assets — is, for most investors, a good one.