In the world of banking and finance operations there is no escape from Know Your Customer (KYC). It is worldwide mandatory process of verifying and identifying customers. The KYC is part of Patriot Act which was passed after an incident of 9/11 in 2001. It offer range of means to prevent terrorist behavior. By identifying and verifying the customer’s intentions and then understanding pattern of transactions, the financial institutions are more perfectly to recognize any doubtful activity. Usually money laundering and terrorist financing depend on unidentified opened bank accounts.
Know Your Customer regulations and strict emphasis has led to improved reporting of suspicious transactions. The use of KYC in cryptocurrency domain is also becoming important as the industry matures. Know Your Customer in cryptocurrency is a manual process of physical verification of scan documents. It is significant as it make sure that information provided by the customer are real. In cryptocurrency the process of Know Your Customer in banks and digital exchange is the same. At always require proof of personal address, proof of identity and some other relevant data.
However there are some cryptocurrencies exchange which offer services to its customers without verification of personal identity. Such kind of unidentified exchanges often involves limitations and risk. It is better to use cryptocurrency KYC exchanges.
The most important documents that you need to submit include proof of your address and proof of your identity. The passport, personal identity card or driving license are documents required for personal identity. When it comes to proof your personal address, documents required include utility bill (telephone bill, gas bill or electricity bill), passport, statement of bank account with verified signature, letter from manager of commercial bank.