KYC (Know Your Customer)
Also known as: Identity Verification, User Compliance Check, Regulatory KYC
A regulatory process requiring users to verify their identity before accessing financial or crypto services.
KYC, or Know Your Customer, is a standard compliance process in the financial and crypto sectors where users must verify their identity before using certain services. This typically involves submitting documents such as passports, IDs, and proof of address. KYC is required by law in many jurisdictions to prevent money laundering, terrorism financing, and fraud. In crypto, KYC is common on centralized exchanges, fiat on-ramps, and regulated DeFi platforms. While it enhances security and regulatory trust, it can also reduce user privacy and exclude users in underserved regions.