In recent times KYC verification is getting increasingly mandatory across exchanges, while the concept is supposedly targeted at creating an extra layer of security for exchanges, it probably isn’t a clear concept to many. For clarity purpose, KYC (Know Your Customer) verification in exchanges involves set of steps crypto users are required to take during onboarding to verify their identities. Those steps are legally requested for and when properly executed, KYC verifications are often quick and secure.
While I’m cleared on the fact that KYC verification in simple terms allows exchanges to identify and verify the identities of their customers to help prevent illegal activities like money laundering, fraud, etc, the concept of mandatory KYC isn’t clear to me since some exchanges still operate as optional KYC platforms while others have embraced mandatory KYC verification. If KYC verification helps tighten security as claimed, why then is a concept for something as serious as security optional in various exchanges?
As crypto becomes more mainstream, more and more exchanges are beginning to bow to the pressure to conform to KYC standards. While some customers readily verify, others tend to switch to non mandatory KYC exchanges for their respective reasons. Interestingly though, most top tier exchanges have now incorporated mandatory KYC, hence users who opt for their services have no choice than to submit to their demands.
With mandatory KYC becoming prevalent in the crypto trading space, most users who still don't get why they must verify their identities are probably asking the same question—what are the implications of not completing KYC verifications? and what do exchanges benefit from making KYC verifications mandatory?
While I’m cleared on the fact that KYC verification in simple terms allows exchanges to identify and verify the identities of their customers to help prevent illegal activities like money laundering, fraud, etc, the concept of mandatory KYC isn’t clear to me since some exchanges still operate as optional KYC platforms while others have embraced mandatory KYC verification. If KYC verification helps tighten security as claimed, why then is a concept for something as serious as security optional in various exchanges?
As crypto becomes more mainstream, more and more exchanges are beginning to bow to the pressure to conform to KYC standards. While some customers readily verify, others tend to switch to non mandatory KYC exchanges for their respective reasons. Interestingly though, most top tier exchanges have now incorporated mandatory KYC, hence users who opt for their services have no choice than to submit to their demands.
With mandatory KYC becoming prevalent in the crypto trading space, most users who still don't get why they must verify their identities are probably asking the same question—what are the implications of not completing KYC verifications? and what do exchanges benefit from making KYC verifications mandatory?