What is KYC? And why is it important for cryptocurrency trading platforms in Saudi Arabia?
Know Your Customer (KYC) is a globally accepted procedure by financial institutions to ensure the identity of users and verify that they are real people. This system has been widely adopted by traditional banks and financial companies, but with the increasing use of cryptocurrencies and the proliferation of their trading platforms, KYC has become necessary for these platforms as well. This system aims to protect platforms and users from illegal activities such as money laundering and terrorist financing.
Importance of KYC in Saudi Arabia
In Saudi Arabia, although the government does not consider cryptocurrencies such as Bitcoin to be a legal means of payment, it has not banned cryptocurrency trading directly. However, due to the high volatility of these currencies, financial authorities have repeatedly issued warnings about the risks of trading them. Therefore, KYC is essential to protect both users and trading platforms from fraud and cybercrime.
Compliance with international regulations: Similar to other countries, trading platforms in Saudi Arabia are required to comply with international standards regarding anti-money laundering and combating the financing of terrorism. These regulations require trading platforms to verify the identity of users as part of KYC procedures.
Reducing fraud: KYC helps reduce suspicious activities by verifying users’ identities, making it difficult for scammers or criminals to open fake accounts or use the platform for illegal purposes.
Increased trust: Knowing that all users have been verified increases users’ trust in the platform, and transactions become more secure.
Documents required for KYC procedures
Trading platforms usually require users to provide a set of documents to complete the KYC procedure. These documents include:
Government-issued ID: such as a passport or driver's license.
Proof of address: This could be a utility bill such as electricity or a bank statement showing your residential address.
Biometric verification: Some platforms may require a recent photo or live facial scan to ensure identity matches.
How to complete KYC on Binance #Binance
On #بينانس , one of the world’s largest cryptocurrency exchanges, KYC is implemented in a simple and effective way. Here’s how to do it:
Open an account: First, you need to create a new account using your email or phone number.
Entering personal data: This requires filling out a form containing your personal information such as full name and date of birth.
Upload documents: The platform will ask you to upload a photo of your ID and proof of address.
Biometric verification: The platform often asks for a selfie or a live facial scan to verify the identity matches.
