Explainer: what know-your-customer and anti-money-laundering rules mean for crypto users

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Regulated crypto businesses such as centralized exchanges are usually required to verify who their customers are. These know your customer checks typically involve a government ID and proof of address.

KYC sits within wider anti-money laundering rules. Depending on the country, firms may need to monitor transactions, report suspicious activity and pass sender and recipient details along with some transfers.

For users, this explains why withdrawals are sometimes delayed for review and why some services ask for information about the source of funds. It also explains why certain privacy coin listings have been restricted in some places.

Rules differ by jurisdiction and change over time. When a service asks for documents, check that you are on its official website and not a phishing copy — scammers imitate verification requests to steal identity documents.