KYC stands for Know Your Customer. In crypto, it's a process that platforms use to verify the identity of their users in order to comply with laws, especially AML (Anti-Money Laundering) regulations. ..
🔍 What Does KYC Involve?
To complete KYC, users are usually required to submit:
1. Government-issued ID (e.g., passport, driver’s license)
2. Selfie or facial verification
3. Proof of address (e.g., utility bill, bank statement)
4. Sometimes, source of funds or occupation info
🏦 Why KYC Matters in Crypto
KYC helps crypto platforms:
Prevent money laundering.
Stop terrorist financing.
Comply with regulations.
Reduce fraud and identity theft.
Build trust with banks, regulators, and users.
⚙️ Where KYC Is Used in Crypto
You’ll typically encounter KYC on:
Centralized exchanges (CEXs) like Binance, Coinbase, Kraken.
Fiat on/off ramps (e.g., buying crypto with a credit card or bank transfer).
Launchpads or IDO platforms.
NFT marketplaces (increasingly).
Some regulated DeFi protocols.
⚠️ Risks of Skipping KYC
If a project or platform doesn’t follow KYC rules when required.
It could be banned, fined, or shut down.
Users might lose access to funds or services.
It could be blacklisted by other platforms and partners.
✅ Final Takeaway
KYC in crypto is:
A compliance tool to fight crime and meet regulations.
Increasingly required in most countries.
Controversial in privacy-focused parts of crypto.
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