KYC is the process to identify and verify the identity of customers when participating in opening accounts on exchanges, this ensures against illegal activities such as money laundering. Currently, on major exchanges, KYC is a mandatory condition to be able to trade, withdraw and deposit. However, many people do not like KYC because they are concerned about the issue of personal information being exposed. Information used for KYC such as passports and driver's licenses may be exposed if the exchanges are not well secured.
especially if the exchange is a local exchange which requires kyc. indirectly, our identity can be known and I think the tax office will find it easier to know each of our transactions. We know that the exchange is already a legal entity and has received permission from the government, while the government has the right to collect taxes.