What is #KYC ?
(KYC) Identity Verification, or Know Your Customer,
It is a procedure by which financial institutions, including cryptocurrency trading platforms, are required to verify the identity of their customers before allowing them to open accounts or conduct transactions.
The purpose of KYC:
1. Preventing money laundering: Identity verification helps reduce illegal activities, such as money laundering.
2. Preventing the financing of terrorism: It helps ensure that funds are not used for illegal purposes.
3. Compliance with laws: Platforms are required to comply with local and international laws related to combating financial crimes.
KYC Process Steps:
1. Providing personal data: such as full name, date of birth, address, and other information.
2. Upload official documents: This usually includes submitting copies of your passport or national ID card, and perhaps a utility bill or bank statement as proof of address.
3. Identity verification: Some platforms also require identity verification by taking a selfie with the documents provided.
Is KYC important in trading platforms?
1. It helps build trust between users and the platform.
2. Reduces illegal activities such as fraud and money laundering.
3. Compliance with the laws and regulations of governments and financial bodies concerned with regulating digital currency markets.
Some trading platforms require clients to complete KYC procedures to gain full access to all services, while some platforms provide limited functionality for those who do not wish to provide identity information.
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