What Is KYC Verification and How to Verify?
While crypto currencies are gaining popularity day by day, users who want to trade on these exchanges must take many precautions. The most important of these is KYC (Know Your Customer) applications. So, what is KYC and how is it used in cryptocurrency exchanges? We will take a closer look for this subject.
What is KYC?
In cryptocurrency exchanges, KYC is a procedure implemented to verify users' identity information. This procedure involves collecting and verifying users name, address, phone number and other personal information. KYC is implemented by cryptocurrency exchanges to prevent criminal activities such as stealing users identities, creating fake accounts or money laundering. Additionally, KYC helps exchanges ensure their compliance with legal requirements.
The KYC procedure is usually carried out by presenting documents such as the user's identity document, address document and a selfie. These documents are used to prove the authenticity of the user's identity. Cryptocurrency exchanges may use KYC practices at different levels. For example, some exchanges only collect basic credentials, while others may implement a more comprehensive verification procedure. Some exchanges may request more information from users who want to trade large amounts. As a result, the KYC Verification system is a procedure implemented to verify the identities of users in cryptocurrency exchanges. This procedure helps exchanges ensure compliance with legal requirements and prevent criminal activities.
How to do KYC Verification?
It applies different levels of verification requirements for KYC (Know Your Customer) procedures. You may need to perform different levels of verification depending on your transaction volume and the transactions you will make.The steps for KYC verification may differ depending on the exchange, but in general, the steps to be followed are:
Account Creation: You must register on the website or mobile application to create a cryptocurrency account. It is necessary. During registration, you need to specify your email address and password.
Basic Verification (Level 1): Basic verification is required to verify your cryptocurrency account. At this level, you need to provide basic information such as your name, date of birth, and address. These exchanges may require a government-issued form of identification such as a passport, driver's license, or ID card for basic verification.
Advanced Verification (Level 2): Advanced verification is required to process high volumes of transactions. At this level, the exchange may request additional information such as the employer's name, occupation, business address and income. Additionally, there is a possibility that additional documents may be requested. Some of the exchanges requires this level for deposit and withdraw.
High Verification (Level 3): High verification is required to conduct very high volume transactions. At this level, it may request additional documentation to confirm large transactions.
As a result, we can not tell that KYC verification is safe or not but we all know that if we want to use crypto market the most safe ones we have to do KYC verification. And again we all know that the exchanges and the customers must take security measures.
Thank you for reading, if you have any suggestion or question let us discuss in the comments.
