Guides
Guide to KYC Compliance for Crypto Exchanges and Wallets
Know Your Customer (KYC) is the process of verifying customer identities and background to meet Anti-Money Laundering (AML) requirements. In the crypto industry, KYC has become essential for exchanges and wallet providers to operate legally and safely. KYC for crypto typically involves a set of steps during user onboarding to confirm who the customer is and assess their risk – steps which are legally required under financial regulations. By implementing robust KYC procedures, crypto platforms can deter illicit activity; vigorous identity checks make it much harder for criminals to launder money or commit fraud through an exchange, effectively dissuading bad actors from using that service. This not only protects the business and its users from fraud and theft, but also builds trust, allowing crypto exchanges and wallets to integrate with the broader financial system. In short, strong KYC compliance helps legitimize the crypto industry, making it safer and more credible for everyday users and regulators alike.
