What is Know Your Customer (KYC) for cryptocurrency?

Know Your Customer (KYC), or sometimes referred to as Know Your Client, is a process by which a business or agency verifies the identity of its clients. The process is mandatory for banks, lenders, insurance providers, and other financial and monetary companies of all sizes.

What does KYC stand for?

Know Your Client (KYC) 1 Understanding Know Your Client (KYC) The Know Your Client (KYC) rule is an ethical requirement for those in the securities industry who are dealing with customers during the opening and ... 2 Suitability Rule. ... 3 Establishing a Customer Profile. ...

Does your bitcoin exchange have a KYC and anti money laundering policy?

For many bitcoin exchanges, an aspect of mandatory compliance with local legislation includes KYC and Anti Money Laundering (AML) efforts that showcase to enforcement what steps the exchange is taking to prevent money laundering and other illegal activities. A major component of an effective AML policy is having a KYC process.

What are the risks of KYC requirements at bitcoin?

Other risks that come with KYC requirements at bitcoin include: Not only does registering with an exchange make you susceptible to and traceable by law enforcement, it also poses a number of risks to your personal privacy. KYC-collecting exchanges are honeypots for hackers to steal personal identification from its customers.