Know Your Customer

Know your customer or (KYC) is a regulatory requirement where a provider of a financial services provider or bank must collect personally identifiable information about its customers in order to mitigate fraud or assist with law enforcement activity.

Some crypto exchanges require KYC when onboarding customers to trade cryptoasset. Unregulated exchanges allow customers to trade without going through this process.

KYC is used to assign an identity to a crypto wallet account and is used by law enforcement to track the provenance of crypto assets associated with illicit-financing.

See also money-laundering, aml, illicit-financing and regulatory-arbitrage.


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