KYC: identity verification on crypto exchanges

KYC (know your customer) is a process in which a financial company verifies a user's identity, for example using an ID document and a photo. It is part of the rules on preventing money laundering and terrorist financing (AML, anti-money laundering). Crypto service providers in the EU must apply it, and the scope of data depends on the type of service and the amount.

Verification means handing over sensitive data, so the company's credibility and its data-processing rules matter. Do not send documents in reply to a message asking you to “verify,” because scammers impersonate services. KYC is not a guarantee that a platform is safe, only one of its requirements, and it does not apply to self-custody wallets, where there is no intermediary.