Hello everyone!
A lot of cryptocurrency exchanges these days ask users to go through KYC checks, mostly to follow the law and keep things secure.
But have you ever wondered why exactly they do this? Is it just about obeying rules, or is there something more to it?
Cryptocurrency exchanges typically need name, address, passport, photo ID, etc. to ensure you are who you claim to be, which aids in the prevention of fraud and money laundering.
But do they handle this process themselves, or are they hiring other companies to check your details? And how safe is your information once you hand it over? Some platforms also set limits on your account if you haven’t completed KYC.
If you’re curious about these things, it’s fair to ask of course: Why does the exchange really need your data, what do they do with it, and who actually gets to see it? These are important questions to ask for anyone using a crypto exchange today.
I believe KYC verification is an important factor when it's comes to securing finances. It's a way of proving your validation because even big banks need this information to help secure your funds. They're have being several occasions of creating a fake account with someone else's details which poses as fraud so the introduction of verification including facial verification and identity verification are key factors. Exchanges are end to end encrypted so your provided details are sure to be safe and not being accessed by externals which makes it safer and more reliable.