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?
Do centralized crypto trading platforms have KYC checks?
A centralized crypto-related company is going to require its users to verify their identity before it lets them use its services - most of the time. This makes sense, since the company in question needs to adhere to certain laws and regulations that are in place. On the other hand, decentralized crypto trading platforms don’t have KYC checks.
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.
