KYC
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In Brief
KYC (Know Your Customer) is the identity-verification process that regulated financial services and centralized crypto exchanges use to confirm who their users are — typically requiring ID and personal details before you can trade or withdraw.
What Is KYC (Know Your Customer)?
KYC, short for Know Your Customer, is the process by which regulated financial services verify the identity of their users. In crypto, centralized exchanges and many fiat on-ramps require KYC — usually a government-issued ID, a selfie, and personal details — before you can buy, trade, or withdraw funds.
KYC exists to comply with anti-money-laundering (AML) regulations and to prevent fraud. It's standard on custodial platforms but works very differently in the world of self-custody.
How Does KYC Work?
You sign up for a regulated service (e.g. a centralized exchange).
You submit identity documents — typically a passport or driver's license.
You may complete a liveness check (a selfie or short video).
The provider verifies your identity against the documents.
Once approved, you gain full access to trading and withdrawals.
KYC vs Non-KYC (Self-Custody)
| Feature | KYC Platform (custodial) | Self-Custody Wallet |
|---|---|---|
| Identity required | Yes | No, to hold your own keys |
| Who holds funds | The platform | You |
| Account approval | Needed before use | Not needed to create a wallet |
| Privacy | Lower | Higher |
| Example | Centralized exchange | Non-custodial wallet |
Why Do Platforms Require KYC?
Regulatory compliance — AML and counter-terrorism-financing laws.
Fraud prevention — reducing identity theft and account abuse.
Fiat access — banks and card networks require verified identities.
Does a Self-Custody Wallet Require KYC?
Creating a non-custodial wallet does not require KYC — you simply generate keys and you're in control. KYC may still apply when you use a third-party service inside or alongside a wallet (for example, buying crypto with a card through an integrated provider), because that provider is a regulated business.
KYC and Trust Wallet
Trust Wallet is non-custodial: you can create a wallet and hold, send, receive, and swap crypto across 100+ blockchains without handing over your identity to Trust Wallet. Your keys and assets are yours from the start. Note that if you buy crypto through a third-party on-ramp integrated in the app, that provider may require its own KYC to comply with local regulations.