Overview
Know Your Customer (KYC) is identity verification required by regulated platforms to prevent fraud and money laundering. It involves collecting and verifying user identity documents. It is common on exchanges and regulated services.
How It Works
Platforms collect user information and verify it against official documents and databases. KYC is part of compliance with AML regulations. It introduces friction but enables regulated services.
Why It Matters
KYC is required for most centralized exchanges and compliant platforms. It balances privacy and regulatory compliance. Its role in crypto is a central debate, especially with emerging privacy tools.
Related Concepts
KYC relates to AML, Compliance, and Regulation. It is standard on Exchanges and regulated services.