What is KYC

KYC stands for Know Your Client or Know Your Customer. It is a set of guidelines in the investment industry that mandates financial institutions and advisors to be familiar with details about their clients, such as their identity and their risk preferences.

The minimum KYC criteria has been set by the Financial Crimes Enforcement Network (FinCEN) to prevent fraud or corruption.

In the context of cryptocurrency, most cryptocurrency exchanges require users to digitally identify themselves, volunteering personal details including their names, dates of birth, and an official photo ID such as a passport. However, there are some crypto exchanges that do not require KYC.