KYC (Know Your Customer) refers to the process of verifying the identity of users, required by financial regulations to prevent money laundering, fraud, and terrorist financing.
KYC requirements typically include government-issued ID, proof of address, selfie verification, source of funds documentation, and ongoing monitoring.
KYC in cryptocurrency: Centralized exchanges require KYC, limits on non-KYC accounts, some jurisdictions stricter than others, and DEXs typically do not require KYC.
Privacy considerations: KYC creates data security risks, some users prefer privacy-focused alternatives, balance between compliance and user privacy remains debated.