KYC (Know Your Customer)
Identity verification requirements that financial services must perform to prevent fraud and money laundering.
KYC is the process where you verify your identity with a service, typically by providing your name, address, date of birth, and a government ID. In crypto, you'll encounter KYC when signing up for exchanges like Coinbase, or when using onramps and offramps.
KYC exists because of anti-money-laundering (AML) regulations. Financial institutions are legally required to know who their customers are. This applies to crypto exchanges that handle fiat currency.
DeFi protocols and self-custody wallets generally don't require KYC (you can use them with just a wallet address). But any service that converts between fiat and crypto almost always will.
Related Terms
AML (Anti-Money Laundering)
Laws and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
Onramp
A service that lets you convert traditional money (fiat) into cryptocurrency.
Offramp
A service that lets you convert cryptocurrency back into traditional money (fiat).
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.