KYC standards protect financial providers like crypto exchanges from fraud and money laundering by verifying user identities through ID, passport, proof of address, or biometrics.
These programs help companies understand their customers and comply with global KYC regulations.
As crypto grows, regulators push exchanges to follow traditional bank rules to prevent crypto misuse.
The Importance of KYC for the Crypto Industry
In 1970, the US enacted the Bank Secrecy Act (BSA) to combat money laundering and other financial crimes.
Consequently, this act mandates record-keeping, cash transaction reporting, and suspicious activity reporting by financial institutions.
Furthermore, the Financial Crimes Enforcement Network (FinCEN) was established in 1990 to enforce BSA-related KYC and anti-money laundering (AML) rules.
Subsequently, FinCEN diligently monitors financial transactions, which in turn aids law enforcement in combatting domestic and international financial crimes under the BSA.
In addition, it’s noteworthy that FinCEN’s regulatory reach extends beyond banks; it encompasses insurers, creditors, fintech firms, digital asset dealers, and nonprofits.
These diverse entities are all required to implement KYC processes to verify customer identities, contributing to a comprehensive and robust compliance framework.
Finally, in late 2020, FinCEN took a significant step by proposing an extension of KYC requirements to the cryptocurrency and digital asset markets.
In this context, certain cryptocurrencies were classified as monetary instruments, marking a notable development in the regulatory landscape.
Can Users Buy Crypto Without KYC?
Decentralized applications like DEXs typically don’t need to conduct KYC on users as they’re not seen as financial intermediaries.
DEXs enable peer-to-peer trading through smart contracts.
However, acquiring crypto often involves using a centralized exchange or bank account, both of which require KYC.
How KYC Works
KYC begins by collecting basic information from customers, like their name, birthdate, and address, along with government-issued documents.
Financial institutions then verify this data, which includes:
- Confirming the user’s identity.
- Checking the legitimacy of their income sources and activities.
- Assessing the customer’s risk profile based on factors such as activities and location.
How to Complete KYC for the Crypto.com App
To register on the Crypto.com App, you need to provide:
- Full legal name
- Government-issued ID picture
- Selfie
For a comprehensive guide on the Crypto.com KYC process, check the Help Centre verification information page.
To sign up for a Crypto.com account, download the app from Google Play or the Apple Store.
Start by entering your email and creating a password.
Then, link a payment method, such as a bank account.
If you’re linking a US bank account, you’ll be asked for KYC details, including your name, contact info, and Social Security Number.
Once fully verified, users can deposit and withdraw funds within Crypto.com’s daily and monthly limits.
The entire account setup, including KYC, is managed exclusively through the Crypto.com App, and you should never send required information via email or in-app chat.
You can download the Crypto.com App here.
How to Complete KYC for the Crypto.com Exchange
Crypto.com places a strong emphasis on compliance.
To use the Crypto.com Exchange, users must undergo KYC verification, which involves providing:
- First and Last name
- Nationality
- Date of birth
- Mobile number for OTP
- ID submission
- Photo
The verification process duration varies, typically taking a few hours to a couple of business days, depending on factors like picture quality.
To speed up verification, follow these steps:
- Ensure Full Legal Name matches the document.
- Capture a well-lit and clear ID picture with all corners visible.
- When taking a selfie, hold the camera steady and avoid head movement.
Conclusion
KYC safeguards companies from illicit activities, enhancing crypto’s reputation and global acceptance.
Crypto.com upholds top-tier compliance standards, promoting a positive crypto environment for users and wider adoption—a mutually beneficial outcome.