What is KYC and why is it important for crypto exchanges?

The point of KYC is to confirm that a customer is who they claim to be and to prevent illegal activities, such as money laundering, funding terrorism, and tax evasion. If a crypto exchange doesn't perform KYC, then it could be liable for those kinds of illegal activities.

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.

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 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.