Recently, many people still have questions about the KYC process at exchanges. Let me briefly clarify what this thing actually is.

Simply put, KYC stands for "Know Your Customer," which is an identity verification process required by financial institutions, including crypto exchanges. The straightforward purpose is—to confirm your true identity and prevent illegal activities like money laundering, terrorist financing, or scams using fake identities.

Why are exchanges so persistent about KYC? There are a few main reasons. First, regulatory authorities require it. Governments around the world are pushing exchanges to implement KYC to reduce financial crime risks, and this has become standard practice. Second, without KYC, bad actors can easily open multiple anonymous accounts and transfer large amounts of illegal funds in cryptocurrencies, which harms the entire market ecosystem.

From a user’s perspective, KYC is actually about protecting us. By verifying identities, exchanges can quickly detect and block suspicious accounts, preventing hackers from stealing funds with fake accounts. Moreover, if an account is compromised, the exchange can more quickly trace and freeze abnormal transactions. Additionally, KYC helps prevent large-scale pump-and-dump manipulations, making the market fairer for all investors.

So what exactly does KYC require? Usually, exchanges will ask you to submit a few things. First, a government-issued ID, such as a passport, ID card, or driver’s license copy. Second, recent proof of residence, like a utility bill, water bill, or bank statement, mainly to verify your address. Third, many platforms also require a selfie or real-time video verification to ensure the person submitting the documents is the same as on the ID.

The entire verification process is actually quite simple. You first register an account, then the system guides you through identity verification—enter basic information, upload documents, and perform facial recognition. The platform will review your information within a few hours to a day. Once approved, you can use all the exchange’s features normally, including deposits, withdrawals, and trading.

I think some people see KYC as a hassle, but from another perspective, it’s actually a necessary measure to protect the entire market. Through KYC, exchanges can effectively prevent scams, combat money laundering, and ensure compliant operations. For us users, this layer of verification adds an extra layer of security—at least we know everyone on the platform has a real identity, making the trading environment more controllable.

So, what is KYC? Simply put, it’s an identity confirmation process that protects both the exchange and the market, as well as ourselves. Although it requires submitting some personal information, it’s a fundamental rule we must accept to participate in the crypto space. What do you think—do you see this as a necessary security measure or find it too cumbersome?