KYC
KYC, short for Know Your Customer, is the identity verification a financial platform uses to confirm who a user is. Regulated crypto exchanges and brokers usually require it before you can deposit, trade or withdraw.
What a KYC check involves
Typically you provide your full name, date of birth and address, upload a photo of an official ID such as a passport, and take a selfie or short video so the platform can match your face to the document. Some platforms also ask for proof of address, like a recent utility bill, and for larger amounts, information about where your money comes from.
The check is often done by a specialized identity provider working for the exchange. It can take minutes or several days.
Why platforms require it
KYC is part of anti-money-laundering (AML) rules. In most countries, businesses that exchange crypto for money or hold it for customers are regulated as financial service providers and must know who they serve. It helps prevent fraud, money laundering, terrorist financing and sanctions evasion, and it allows authorities to trace funds when crimes are investigated.
Privacy and security trade-offs
Handing over identity documents creates risk. Platforms and their providers can be hacked, and leaked KYC data can be used for identity theft or targeted phishing. Linking your name to exchange accounts also links it to the blockchain addresses you withdraw to.
Scammers exploit KYC too. Fake verification pages, messages asking you to re-verify your account, or requests to upload your ID to an unknown site are common phishing tricks. Only complete KYC inside the official app or website you navigated to yourself.
KYC and self-custody
KYC applies to the services you use, not to the blockchain itself. You can generally hold crypto in a self-custody wallet without KYC, though regulated exchanges may ask you to confirm that a withdrawal address belongs to you.
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Frequently asked questions
Is it safe to do KYC on a crypto exchange?
It is a normal legal requirement on regulated platforms. The main risks are data breaches and fake KYC pages, so use only official channels and reputable providers.
Can I use crypto without KYC?
Self-custody wallets and many decentralized apps do not require it, but converting between crypto and bank money through a regulated provider normally does.
Why was my KYC rejected?
Common reasons are blurry photos, expired documents, mismatched names or addresses, or residence in a country the platform does not serve.
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