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?
Can you buy crypto without KYC?
You can buy crypto without KYC, but it's more complicated and potentially riskier than using an exchange that follows KYC regulations. The most common ways to buy crypto without verifying your identity are decentralized exchanges and Bitcoin ATMs. A decentralized exchange is an exchange without a central organization governing it.
Why do centralized crypto exchanges require KYC checks?
This is due to the lack of regulatory attention paid to the crypto world - it allows centralized exchange platforms to be less intrusive on your personal information. That’s another point, too - in the world of crypto, it all boils down to centralization. Specifically, only centralized crypto exchanges apply KYC checks to their customers.
Can you buy crypto in cash?
Although fees tend to be high, these ATMs let you buy crypto in cash. KYC is a requirement you'll encounter on just about all centralized crypto exchanges. Buyers who prefer to stay anonymous have other options, namely peer-to-peer crypto marketplaces and Bitcoin ATMs.
