What Is KYC (Know Your Customer) and Why Is It Necessary?
1 min read · · Korean original
KYC stands for Know Your Customer. It is the process by which an exchange platform verifies a customer's identity before providing services to them. Identity verification helps detect illegal activities such as money laundering and prevents malicious actors from hiding their identities.
Why Exchanges Need KYC
Exchanges such as Binance, Bybit, and Bitget require KYC verification. This is to prevent money laundering and to comply with regulations and laws. The purpose of KYC is to detect illegal activities and quickly identify malicious actors and suspicious activity to prevent further damage.
How to Complete KYC
The KYC process varies from exchange to exchange, but it can usually be completed using identity documents such as a passport, ID card, driver's license, or utility bill. You can check out how to verify your identity on the Binance exchange here.
Why You Should Complete KYC
Completing KYC allows you to claim ownership of your account and receive protection under the applicable laws and regulations. Providing personal information to an exchange may feel a little uneasy, but if you mainly use large, secure exchanges, KYC can help the exchange protect its customers. On the other hand, if you do not complete KYC, your trading, deposit, and withdrawal features may be limited.
