KYC
KYC stands for Know Your Customer. It’s a check that a crypto platform uses to confirm who you are.
What is KYC?
With KYC, you provide personal information such as your name, address, and date of birth. You’ll also usually upload a valid identity document, such as a passport, driver’s license, or ID card.
A regulated crypto platform uses this information to verify your identity. KYC is legally required for financial companies in Europe. It helps prevent fraud, money laundering, and other financial crimes.
A simple example of KYC
You create an account on a crypto exchange to buy crypto. Along with your email address, the platform asks for your name, address, and a photo of your ID.
The platform then checks whether you’re really the person shown on the document. After this check, you can use the account as usual. This example shows that KYC is mainly an identity check.
Why is KYC important in crypto?
KYC often comes up in news about rules for crypto exchanges and other crypto companies. When a platform introduces KYC or changes its checks, it’s usually to comply with laws and better detect suspicious activity.
After the check, KYC usually doesn’t change how you buy, sell, or store crypto. However, you do share sensitive information. So always check how a platform stores and protects your data.
A platform without KYC often falls outside European oversight. That doesn’t automatically mean it’s unsafe, but there may be less consumer protection if something goes wrong.
