What is KYC?

KYC stands for Know Your Customer. It is a process used by banks, exchanges, fintech companies, and blockchain platforms to verify the identity of users and prevent illegal activities such as money laundering, fraud, or illicit financing.

Typically, KYC requires:

• A valid ID (passport, national ID, or driver’s license).
• Proof of address (utility bill, bank statement). 
• In some cases, a photo or video verification.

Why is it important?

KYC helps to:

• Ensure transparency in financial operations. 
• Reduce the risk of fraud or identity theft. 
• Comply with international anti-money laundering (AML) and counter-terrorism financing regulations.

Updated on: 28/08/2025