KYC

KYC, short for Know Your Customer, refers to the procedures financial firms use to verify the identity of their clients. In crypto, exchanges and other regulated services typically collect information such as a legal name, date of birth, address, and official identification before allowing trading or withdrawals. KYC aims to prevent fraud, impersonation, and illicit finance, and it supports broader anti-money-laundering rules.

A common misconception is that KYC is optional or purely bureaucratic; for regulated providers it is generally a legal requirement, and failing to complete it usually restricts or blocks access to services. Requirements vary by jurisdiction.