KYC

KYC stands for Know Your Customer. It is the set of identity checks a regulated service runs before letting you buy, sell, or withdraw crypto. The aim is to confirm you are who you claim to be. Anti-money-laundering law requires it, so any licensed provider has to do it.

In practice it is quick. You give your name, date of birth, and address, then upload a photo of an ID document such as a passport or driving licence. Many services add a selfie or a 5 to 10 second video to match your face to the document. Software then cross-references the details against the document, screens you against sanctions and watch-lists, and clears your account to transact, all of which often finishes inside 2 to 5 minutes. Sometimes it takes longer. A human reviews the edge cases.

Why does it exist? Crypto moves fast and across borders, which makes it attractive for laundering money or funding crime. Governments responded by extending the same rules banks follow to crypto firms. So an on-ramp verifying your ID is not being nosy. It is meeting a legal obligation, the same one your bank meets when you open an account.

A few practical points. Use your real, current details, because a name that does not match your payment method will stall the check. Higher limits sometimes need extra documents, such as proof of where your money comes from. And only ever submit ID on the provider's official site or app. Fake verification pages are a common phishing trick, so check the web address before you upload anything.

KYC is separate from custody. Passing it does not mean a platform holds your coins. A non-custodial on-ramp can verify your identity and still send crypto straight to a wallet address you control, which keeps you in self-custody while staying within the law.

Banxa, an on-ramp running since 2014 in 100+ countries with 100+ payment methods, applies KYC as part of its service, then delivers each purchase to an address you own.