What is KYC?

KYC stands for “Know Your Customer.” It is a set of procedures that companies, including cryptocurrency trading platforms, undertake to identify their customers and assess the risks associated with their operations.

Why do trading platforms in Saudi Arabia need KYC?

Trading platforms in Saudi Arabia require KYC procedures for several main reasons:

Compliance with laws and regulations: These procedures aim to comply with local and international laws to combat money laundering and terrorist financing.

User Protection: KYC helps protect users from fraud and illegal activities.

Risk Assessment: KYC helps platforms assess the level of risk associated with each customer and take appropriate actions.

Building on greater trust: KYC procedures help build greater trust between users and platforms.

How does KYC work on trading platforms?

When registering on a trading platform, you will usually be asked to provide the following documents:

Government issued identification: such as a passport or national ID card.

Proof of address: such as a utility bill or bank statement.

Phone number: To verify your identity with a verification code.

Selfie photos: to compare your photo with the photo on your ID.

What information is collected?

Trading platforms typically collect the following information about users:

  • full name

  • date of birth

  • Nationality

  • Residential address

  • phone number

  • e-mail

  • Source of funds

  • Information about business activities

Why might my KYC application be rejected?

A KYC application may be rejected for many reasons, including:

Failure to submit required documents: All required documents must be submitted in a clear and legible manner.

Incorrect or misleading information: All information provided must be true and accurate.

Suspicious Activity: If there is suspicion that the user is involved in illegal activities, their application may be denied.

Important tips:

Choose a reliable platform: Make sure to choose a trading platform that is licensed and well regulated.

Provide accurate information: Provide accurate and complete information when registering.

Keep a copy of documents: Keep a copy of all documents you have submitted.

Consult a legal expert: If you have any questions about KYC procedures or regulations related to cryptocurrencies, consult a legal expert.

KYC procedures are essential to ensure the safety and security of cryptocurrency trading platforms in Saudi Arabia. By adhering to these procedures, users can enjoy a safe and reliable trading experience.

Do you have any other questions about KYC or trading platforms in Saudi Arabia?

Note: This information is provided for general informational purposes only and is not legal or financial advice.

Useful Resources:

Saudi Capital Market Authority: You can view the Saudi Capital Market Authority’s regulations related to cryptocurrencies.

Licensed Trading Platforms: Look for trading platforms that are licensed by the Saudi Capital Market Authority.

For more information, please see this link on the Binance website. Link