Know Your Customer (KYC) is a process for identity verification. It’s used by banks, brokers, exchanges, and many other financial institutions to check the identities of their clients.
KYC involves giving information to prove who you are, like showing your ID or bank statements. This process helps stop illegal activities like money laundering, fraud, and the financing of terrorism. Similar to Anti-Money Laundering (AML) rules, KYC helps keep financial systems secure and trustworthy.
So, how can KYC protect you?
Imagine a scenario where you try to buy crypto from a malicious user on a peer-to-peer (P2P) platform like Binance P2P. Without KYC, it would be easy for them to create a fake account and trick you into sending them money without sending back your crypto. But with KYC, every user’s identity is verified, making it much easier to prevent illegal activities and quickly resolve issues.
Benefits of KYC
On top of that, when you complete your KYC on Binance, you get many benefits, such as:
1. Full access to products and features. Without KYC, you can’t use all the features on Binance. You will be limited in trading, withdrawing funds, and accessing only specific parts of the platform.
2. Better security. Giving accurate ID information helps Binance protect your account from potential hacks and fraud. It makes sure your account is really yours and not a fake.
3. Binance Earn. To use Binance Earn, you need to complete KYC. This lets you take part in earning opportunities and potentially grow your income through passive investing opportunities.
Learn more: What Is KYC (Know Your Customer)?