KYC (Know Your Customer)

KYC is the identity-verification process exchanges and other regulated financial services use to confirm who their customers are, typically requiring a government ID and sometimes proof of address or a selfie. It exists to comply with anti-money-laundering laws and to prevent fraud, stolen accounts, and illicit use of the platform. Most licensed centralized exchanges require KYC before allowing deposits, withdrawals, or trading beyond small limits. Decentralized exchanges and non-custodial wallets generally don't require KYC, since there is no company custodying funds on your behalf — though this varies by jurisdiction and by which centralized on/off-ramps you use to convert to fiat.