KYC

KYC (Know Your Customer) is the set of identity-verification checks that a regulated financial or crypto service performs before letting a user transact — typically collecting a government ID and proof of address before allowing deposits or withdrawals. The goal is to tie an account to a real, verified person so the provider can meet its regulatory obligations and screen out sanctioned or fraudulent actors. In crypto, centralized exchanges and custodial services must run KYC wherever they operate, while fully non-custodial protocols generally do not, because no intermediary holds user funds. KYC is paired with ongoing AML monitoring once an account is active.