KYC (know your customer)
Also called: KYC · know your customer · identity verification
Definition
KYC (know your customer) is the identity check that regulated exchanges and financial firms run before letting you deposit, trade or withdraw, usually with an ID document and a selfie.
This entry is shown in English.
How KYC works
KYC is part of anti-money laundering rules. A typical crypto exchange asks for your name, date of birth and country, a photo of a passport or national ID, and a live selfie or video check. Higher levels may require proof of address or proof of where your funds come from.
Exchanges often tie features to verification levels. Without completed KYC you may only be able to view the app, or you may face low withdrawal limits. Fiat deposits, futures, P2P trading and higher limits usually require full verification. Exactly what is required depends on the exchange and on rules in your country.
KYC data is sensitive, so think about who receives it. Only complete verification on the exchange's official app or website, never through links sent by messages or third parties. Exchanges usually use specialist identity providers, and reputable ones explain this in their privacy policy. If an account was verified with someone else's documents, it can be frozen.
Example
Suppose an exchange lets unverified users withdraw nothing, basic-verified users withdraw up to 2 BTC per day, and advanced-verified users up to 100 BTC per day. You complete basic KYC with your ID and a selfie and want to move 3 BTC to a hardware wallet. You could send 2 BTC today and 1 BTC tomorrow, or complete the advanced level with proof of address to move all 3 BTC at once. These limits are illustrative; each exchange sets its own.
Common mistakes
- Uploading ID documents through a link sent in a chat or email instead of the official app.
- Letting a friend or broker verify an account for you, which breaks exchange terms and can freeze funds.
- Depositing a large amount before checking whether your verification level allows you to withdraw it.
Learn and practise
FAQ
Why do crypto exchanges require KYC?
Regulated exchanges must verify users under anti-money laundering and counter-terrorist financing rules. KYC also helps exchanges recover accounts and comply with sanctions.
How long does KYC take on an exchange?
Basic checks often finish within minutes, while manual reviews or advanced levels can take hours or days. It depends on the exchange and how clear your documents are.