KYC, or Know Your Customer, is a regulatory compliance process used by financial institutions, cryptocurrency exchanges, and other entities to verify the identity of their customers. The primary goal of KYC is to prevent fraudulent activities, money laundering, terrorism financing, and other financial crimes. This process involves collecting and verifying personal information such as name, address, date of birth, and identification documents (e.g., passport, driver's license) from customers. By ensuring that customers are who they claim to be, KYC helps institutions assess the risks associated with a business relationship and maintain the integrity of the financial system. The KYC process is a critical component of a broader anti-money laundering (AML) framework and is mandatory for compliance with local and international regulations.
