KYC (know your customer)

KYC is the identity verification that regulated financial firms, including crypto exchanges, must carry out before letting you use their services. It usually involves submitting government ID, proof of address, a selfie or video check and your bank details.

KYC exists to fight money laundering, terrorist financing and fraud. It links your trading activity to your identity, which also means your transactions on a KYC-verified exchange are visible to tax authorities.

Be careful where you submit documents. Only complete KYC through an exchange's official app or website, and never send ID copies to people who contact you on social media or messaging apps offering help, as identity theft is common in crypto scams.