KYC, an acronym for "Know Your Customer," is a regulatory requirement in cryptocurrency.
KYC is a process businesses or financial institutions use to verify the identities of their customers. This verification process is essential as it complies with the anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
KYC involves gathering personal information and documentation from identification proofs to address verifications.
The practice of KYC helps crypto entities mitigate risks such as:
- financial crimes
- enhance transparency
- maintain regulatory compliance