It’s a way for crypto exchanges (or any other crypto business) to verify the identity of of their customers. Just like banks. Why Does Crypto Need KYC?
What if crypto exchanges didn't abide by New KYC protocols?
Other countries, like China, have already banned crypto transactions. Although some crypto enthusiasts are disappointed with new KYC protocols, if crypto exchanges didn't abide by them, most financial institutions in North America and Europe likely wouldn't legally be allowed to work with them.
What is Know-Your-Customer (KYC) and how does it work?
When you set up an account with a crypto exchange, you'll typically be asked to go through the know-your-customer (KYC) process. This is a standard identity verification that major exchanges require for anyone who wants to trade crypto. The sooner you complete KYC, the sooner you'll be able to make cryptocurrency purchases and withdrawals.
Can I create an exchange account without KYC?
You may be able to create an exchange account without going through the KYC process, but your account will have restrictions until you verify your identity. The most likely restriction is the exchange simply not letting you deposit money or buy crypto.
