KYC
KYC — "Know Your Customer" — is the process where businesses verify a user's identity, usually with an ID document and proof of address. Most centralized e
KYC — “Know Your Customer” — is the process where businesses verify a user’s identity, usually with an ID document and proof of address. Most centralized exchanges require it before you can trade or withdraw, because financial regulators demand it.
Why it matters
KYC is the reason on-ramps like exchanges are regulated but also why they can freeze accounts and are prime hacking targets. It’s central to the “decentralized vs centralized” divide: a DEX lets you trade with no identity, while a CEX asks who you are. Choosing between them is a privacy-versus-convenience trade-off.