What is crypto KYC & how does it work?

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. In this guide, you'll find out exactly what KYC is, how the process works, and alternative ways to buy crypto.

How do crypto exchanges avoid KYC requirements?

Some crypto exchanges avoid KYC requirements by domiciling in softer regulatory environments. Blockchain analysis firm CipherTrace has reported that as many as half of the exchanges registered in Seychelles have poor KYC measures in place.

What is a Know-Your-Customer (KYC) check?

How Crypto Exchanges Prevent Money Laundering Know-your-customer (KYC) requirements are a growing part of Web3, as crypto becomes more integrated with the existing financial system. If you’ve ever used a cryptocurrency exchange or bought an NFT, it’s likely that you will have had to perform a know-your-customer (KYC) check to verify your identity.

Are no-KYC crypto exchanges illegal?

Because of the risks involved, no-KYC exchanges are viewed as illegal in some countries. For example, the US, South Korea, and Canada require all legitimate crypto exchanges to collect KYC data from their customers. Do Crypto Wallets Need KYC? There are two types of crypto wallets: custodial and non-custodial.