KYC for crypto exchanges: what it is and what to expect
KYC (know your customer) is the identity check most regulated crypto platforms run before you can trade. Here is why it exists, what you will be asked for and how to stay safe while doing it.
Why
Why platforms ask
Financial regulators expect businesses that handle money to know who their customers are and to watch for laundering and terrorist financing. Crypto platforms in many countries fall under similar rules, and international standards-setters such as the FATF have issued guidance for virtual-asset providers. KYC is how platforms meet those duties. Rules differ by country, so check the requirements that apply to you.
Documents
What you may be asked for
Identity document
A government ID such as a passport or national ID card.
Selfie or liveness check
A short live video or photo to show the document belongs to you.
Proof of address
A recent bill or bank statement, mostly for higher limits.
Source of funds
For large amounts, an explanation or documents showing where the money came from.
How it works
Automated vs manual checks
Many platforms now use automated verification: you photograph the document and take a selfie, and software compares them within minutes, with a human reviewing difficult cases. The original Shiftal pages described such an automated flow built with a third-party provider; we have not verified that claim. Manual review is slower but can resolve cases automation rejects.
P2P
Why it matters for P2P
In P2P trading, verification on both sides is a safety feature: a verified counterparty is easier to hold to account and harder to use for fraud. Names on the payment and the verified account should match. KYC does not remove the other risks, so keep following the scam rules.
Safety
Protect your data
- Upload documents only inside the official platform or app, never by email or chat.
- Read what the platform keeps and for how long.
- Be suspicious of "re-verification" messages with links; go to the site directly.
- Use a unique password and two-factor authentication on the account.
- Common reasons for rejection are blurred photos, glare, expired documents and name mismatches.