What is KYC and why ID checks

What KYC means for new customers

KYC, or Know Your Customer, refers to the identification steps banks, payment providers, and crypto exchanges use to check who you are. This takes place when you sign up, and sometimes later as well if there's a reason to review your details.

Each provider runs KYC because anti-money-laundering (AML) laws require it. Money laundering is when people try to obscure where their money actually comes from, making crime harder to spot, so these rules are strict worldwide. Sometimes the process can feel long or slow, but there's a reason: without these checks, providers risk heavy fines. Curious how anti-money laundering changes your transfer? Details are at how anti-money laundering rules affect transfers.

Documents and data you may be asked for

Different services and countries ask for different proofs, but you'll usually need to provide one or more of these:

• A passport, national ID card or driving license. These verify your name and when you were born.
• A live selfie or video. Staff or automated systems compare it to your document photo, checking it's you and not someone else using your papers.
• Proof of where you live. This could be a recent gas bill or a bank statement showing your address.
• Information about your job or, sometimes, where your money came from (especially for sizable transfers). There's a section on proof of source of funds if you need more explanation.

Larger amounts or higher limits? Providers may request extra checks or newer documents then.

How your data is used and protected

Your identification data has to be stored for several years, even after the account is closed. Under EU law, five years is common. That data can't be used for marketing, it stays tied to keeping your account secure and fulfilling rules. The EU's General Data Protection Regulation (GDPR) gives you the right to know what information a provider holds about you, and to ask for a copy if you want it.

Many companies hire verification specialists to handle identity checks. Take clear, complete photos and provide the name shown on your document. Never share ID by email or unencrypted chat; fraudsters often impersonate staff to collect personal papers. If your account gets locked or temporarily limited, there's guidance at why accounts are frozen and how to resolve it.

Frequently asked questions