KYC stands for Know Your Customer. It’s the process financial services use to confirm a person’s identity. The purpose is to keep payments safe, reduce fraud, and meet legal and regulatory standards. You’ll see KYC across banks, payment apps, and digital asset services—it’s part of how financial systems build trust between users and providers.
Why it matters
KYC exists for three main reasons. First, it protects customers and businesses from fraud, like stolen cards or account takeovers. Second, it satisfies compliance rules that governments set for financial services, including AML/CFT screening to help prevent money laundering or terrorist financing. And third, it builds trust: verified users mean fewer false declines and a smoother experience overall.
What’s usually checked
The specifics vary by country and provider, but KYC commonly involves providing your legal name, date of birth, and address, along with an official identity document such as a passport, driver’s license, or national ID. Many providers also ask for a selfie or short liveness check to confirm the ID belongs to you. In some cases, proof of address (like a recent bill or statement) may be required.
Most verifications take only a few minutes. Occasionally, if a document needs manual review, it can take longer.
When you might be asked
You won’t always need to complete KYC. Whether it appears depends on the context—factors like your payment method, the amount you’re buying, and the country you’re purchasing from. If verification is necessary, you’ll be prompted during checkout. If you don’t see a prompt, you can continue without it.
Privacy and security
Any reputable provider uses KYC data strictly for compliance and fraud prevention. It’s stored securely, with access restricted to what’s necessary to complete verification. For details on how your information is handled by ONCHAIN®, see our Privacy Notice.
Tips for smooth verification
Make sure your document is valid and unexpired.
Match your legal name exactly as shown on your ID.
Take photos in good lighting; avoid glare and capture all edges of the document.
For selfies, remove hats or glasses and keep your face steady and visible.
Disclaimer: Nothing in this article is financial advice. On-chain activity carries risk. Do your own research and only spend what you can afford to lose.