KYC, or Know Your Customer, is the process financial services use to verify a user's identity, typically with an ID and proof of address.
KYC helps prevent money laundering, fraud and terrorist financing, and it is required by regulation in most countries.
Centralized exchanges and on-ramps usually require KYC before you can buy crypto or withdraw large amounts.
You will need to provide identification and sometimes a selfie. Your data is stored and protected under the service's privacy rules.
KYC reduces anonymity but enables access to regulated, liquid markets. Decentralized services often operate without KYC.
KYC is a standard part of using regulated crypto services and is unlikely to go away.