KYC is an acronym for ‘Know Your Customer.’ It refers to the process of identifying and verifying users in traditional financial systems and cryptocurrency platforms. In this article, you will find answers to questions about what KYC is and why it is important for users.
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What is KYC?
KYC is an information verification system in which user information is approved by a central institution. This information often includes users’ identification documents, phone numbers and addresses. Users who do not save their information to the system may have limited processing capacity. Users can increase the transaction limit and transaction options they can do on the platforms with complete KYC transactions.
Why is KYC Important?
KYC covers the work done by central authorities to secure users to prevent money laundering. Cryptocurrency platforms receive user information following the laws and exist in the markets within the framework of those laws. Thus, users’ account security is protected by the central authority on cryptocurrency platforms.
How to Complete KYC Verification?
KYC is a valid application on almost every platform. All systems where users create accounts by entering their information fall under KYC requirements. When signing up, providing the correct and complete information requested by the platform signifies that KYC verification is being conducted. Cryptocurrency platforms may add a specific waiting period to verify the accuracy of the information entered. Once confirmed, KYC approval is granted, and the user’s account is activated.
Why is KYC Verification Important?
KYC encompasses the efforts made by central authorities to secure users in order to prevent money laundering. This allows for easier tracking of criminals while also ensuring a clear distinction between guilty and innocent users. Cryptocurrency platforms collect and store user information in accordance with the laws.
