KYC (Know Your Customer)
Quick Answer
KYC is the regulatory process of verifying individual user identity before allowing access to financial services, with requirements varying by jurisdiction and transaction volume.
Full Definition
Know Your Customer is the regulatory process of verifying the identity of individual users before allowing them to access financial services. KYC typically involves collecting government-issued ID, proof of address, and biometric verification. In crypto payments, KYC requirements vary by jurisdiction and transaction volume. Payment providers implement risk-based KYC — lighter verification for low-value transactions and enhanced due diligence for high-risk customers.
Related Terms
Key Management
Key management is the process of generating, storing, and securing cryptographic keys for cryptocurrency wallets. Enterprise solutions include HSMs, MPC, and threshold signatures.
KYB (Know Your Business)
KYB is the compliance process of verifying a business entity's identity, ownership, and legitimacy before onboarding. Required by AML regulations for all crypto payment gateways.