Must Know! Why KYC Verification is Important in Crypto
#kyc #crypto
When registering on a crypto exchange, users must go through the KYC (Know Your Customer) stage. This stage is not only important in crypto, but is also a standard procedure in various business fields that deal directly with customers. KYC aims to get to know customers better and minimize security risks. In this article, we will discuss what KYC is, its importance to the crypto market, and how it works!
Mengenal Know Your Customer (KYC)
Know Your Customer (KYC) is a procedure used by financial institutions and businesses to identify and verify the identities of their customers. This process aims to ensure that companies know exactly who they are serving, thereby preventing risks related to illegal activity.
In the context of crypto, KYC plays a very crucial role. Know Your Customer (KYC) is the process of identifying and verifying user identities carried out by CEX (Central Exchange Crypto) to comply with regulations and maintain the security of its ecosystem. The decentralized nature of the crypto industry makes financial transactions difficult to track. To address this, many exchange platforms such as Binance implement strict KYC policies.
How Does KYC Work?
To ensure the security of transactions, the KYC process involves several stages of strict verification. These stages include:
· Collection of Personal Data: When you register with an exchange, you will be asked to provide personal information such as your full name, date of birth, address, and identity number.
· Upload Supporting Documents: In addition to personal information, you will usually be asked to upload a copy of a valid identity document, such as a KTP or passport, as well as a selfie with the document.
· Automated Verification: The KYC system will automatically scan your uploaded documents to extract important information such as name, ID number, and date of birth. This information is then matched against an official database to ensure its authenticity.
· Identity Validation: After all verifications are complete, the system will provide confirmation whether your identity has been verified or not. If successful, you can continue using the service.
Why is KYC Required?
1. Increase Transaction Security
One of the main benefits of KYC in the crypto world is increasing transaction security. By requiring users to verify their identity, crypto platforms can reduce the risk of fraud and account theft. When a user's identity is verified, the platform can better track transaction activity and detect suspicious activity. This provides a sense of security for users because their crypto assets are protected from various threats.
2. Comply with Regulations and Obtain Legality
The crypto industry is currently increasingly regulated by various countries. KYC is one of the requirements that are often required by regulators to ensure that crypto platforms operate transparently and comply with applicable laws. By implementing KYC, crypto platforms can obtain operational licenses and gain trust from regulators. This can also improve the platform's reputation in the eyes of the public and attract more institutional investors.
3. Access to Additional Features
After completing KYC, users can often access additional features such as higher transaction limits or better customer support.
After understanding the importance of KYC in maintaining security, ensuring regulatory compliance, and providing access to additional features for users, we will now discuss how to perform KYC verification on popular crypto platforms, such as Binance.
How to Verify KYC on Binance
To perform KYC verification on Binance, the steps are quite simple and can be done quickly.
Select “Identification”: Log in to your Binance account, then go to the profile section and select the “Identification” option. This is the first step to start the KYC process.
Fill in Basic Information: Enter personal information such as full name, date of birth, and identity number (KTP/SIM/Passport) to match official documents.
Upload ID and Selfie: Upload a photo of the front of your official ID card and a selfie that meets Binance's requirements. You are not allowed to wear glasses, hats, or filters during this process.
Complete Advanced Verification: Binance will verify the documents. If appropriate, the verification will be completed within 15 minutes to a few days.
What If It Keeps Failing?
When the KYC process fails, the reasons can vary. Some common reasons include:
Blurry Document Quality: The uploaded identity document is unclear or unreadable by the system.
Data Does Not Match: The information you entered, such as your name or date of birth, does not match official documents.
Expired Document: The uploaded identity is no longer valid.
Unclear Selfie Photo: The uploaded photo is blurry or does not meet the requirements, such as not matching the identity.
Contacting the Binance Help Center
If KYC on Binance fails, you will receive a notification about the cause, such as blurry documents or mismatched data. To fix this, you need to re-upload better quality documents or make sure the data matches the information listed on your ID document. After that, you can try the re-verification process. If you continue to experience problems, contacting Binance's customer support team can be a solution so that KYC issues can be resolved quickly.
Conclusion
KYC (Know Your Customer) is an important identity verification process in the crypto world. KYC helps maintain platform security, prevent fraud, and ensure regulatory compliance. This process usually involves collecting personal data, document verification, and facial verification. By completing KYC, users can enjoy benefits such as better security and access to additional features.
Risk Disclaimer: Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions
