what is kyc

KYC is the abbreviation of "Know Your Customer"

To put it simply, it is real-name authentication.

KYC certification is an operating rule that financial institutions, banks, exchanges and other companies must carry out. KYC seems more like a record of a user’s personal profile information, such as real name, phone number, ID number, appearance, property status, social relationships, etc. When you go to a bank to open an account, you need to fill in a lot of detailed personal information. This is KYC. Or if you open Alipay or WeChat Pay, you also need real-name authentication (fill in your real name, mobile phone number and ID number), which is also KYC. KYC is very necessary for business management, protecting the property security of itself and its users, and meeting the regulatory requirements of government departments.

What is the role of KYC certification?

KYC is an essential link in all financial activities in the international community. Mainly used to prevent anti-money laundering, identity theft, financial fraud and other crimes. The three elements required for general verification are: name + ID card + mobile phone verification. The main goals of KYC are to verify the identity of the customer, assess the customer’s risk, and monitor the customer’s trading behavior. Financial institutions often require customers to provide identification documents and other relevant information for KYC verification.

What is the meaning of KYC certification?

Cryptocurrency has the characteristics of decentralization and a certain degree of anonymity, which is contrary to KYC to some extent. Moreover, cryptocurrencies were previously not subject to government regulation and legal constraints, so exchanges’ KYC requirements were not so strict in the past. However, in the past few years, fraud and theft incidents have frequently occurred in cryptocurrency transactions, and criminals have also used cryptocurrency to conduct illegal activities such as fund-raising, money laundering, and drug trafficking. Therefore, driven by governments and financial regulatory authorities of various countries, KYC has gradually become a Rules that cryptocurrency exchanges must enforce. If you think about it, in the past, bank cards and mobile phone numbers did not require real-name authentication. In this era of big data, it can be said that individuals have basically no privacy at all. #kyc #热门话题 #