In the cryptocurrency market, the user experience differs between centralized and decentralized.
The decentralized experience is primarily the experience of using blockchain, which anyone can easily access and use without any restrictions.
In contrast, the centralized experience occurs on trading platforms, which require you to register an account and verify your identity, similar to your experience using a digital bank application.
The subject of our article is KYC and why users need it.

Cryptocurrencies give freedom to all users, and malicious individuals can use them for bad purposes.
Therefore, in order for trading platforms to operate and not fall under the law for facilitating illegal activities, and to protect users, the platform needs to carry out a Know Your Customer (KYC) verification.

KYC procedures are a traditional practice for many financial and banking institutions for several years, but they have been adopted by trading platforms in recent years.

What is KYC?

It is a procedure required by platforms to verify the user's identity and document their identity.
KYC procedures vary from platform to platform, and from country to country, but generally are as follows:

  • Filling in personal data such as full name, country of residence, date of birth, and others.

  • Providing an identity document such as an ID card, passport, or driver's license.

  • Sometimes proof of residence is required, with many examples such as a rental contract, bank statement, or recent utility bill, among others.

Why do users in the Gulf need to undergo KYC?

Simply put, the KYC procedure opens up options and privileges for users that are not available to the traditional platform user.

For example, KYC allows you to deposit and withdraw more, and the platform's full services become available to you without restrictions, in addition to your account being verified at Level 1.

However, if you want to elevate your account to a higher level to gain more privileges such as lower trading fees, higher withdrawal and deposit limits, and full VIP services, you will need to conduct income verification.

The idea of income verification is that you provide documents that clarify the source of your assets and investments.
This procedure is for protection against money laundering activities and others on the platform.
Income verification requires any of the following documents:

  • Employment letter with salary

  • Bank statement

  • Proof of real estate ownership

  • Proof of inheritance, if available

What is the solution to KYC issues?

To avoid facing issues with KYC, you should pay attention to these tips:

  • Do not provide identity verification for a prohibited country.

  • Submit your identity data accurately and clearly.

  • Do not submit old or expired identity documents, income verification, or proof of address.

  • If you are asked to take a picture of yourself for identity verification, make sure you are in a well-lit place and do not wear glasses or a hat.