What is KYC in crypto?

Know Your Customer (KYC) is a requirement for regulated financial services companies to identify their users to mitigate the risk of illegal activities. Read on to learn what KYC verification is, why KYC exists, and why it is considered controversial in crypto. What Is the Meaning of KYC?

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.

Is KYC and AML necessary for the crypto industry?

Well, the crypto community has been relatively free from these procedures until the last three years. But the closer the attention of regulators, the more often KYC is indispensable. Regulators insist on KYC and AML, as without them the industry cannot be legalized. When cryptocurrency was in its infancy, the industry was completely unregulated.

Is KYC a touchy topic?

Evidently, as you’ve probably noticed, KYC is a touchy topic. It’s controversial even in the fiat world, and when placed in the context of decentralization, KYC becomes even more convoluted.