Know Your Customer (KYC) is a process used by financial institutions and cryptocurrency exchanges to verify the identity of their users. KYC is designed to prevent fraud, money laundering, and other financial crimes by ensuring that customers provide valid identification before accessing certain services. In cryptocurrency, KYC is commonly required on exchanges, wallets, and other platforms that facilitate the buying, selling, or trading of digital assets.

The concept of KYC dates back to traditional banking regulations but has become a significant part of the crypto industry. As regulators worldwide tighten oversight on digital assets, many exchanges now enforce KYC requirements to comply with Anti-Money Laundering (AML) laws. However, some users prefer no KYC crypto wallets or exchanges to maintain anonymity and privacy when dealing with digital assets.