Article

KYC

August 22, 2026 · Aditya Gupta

Crypto & Blockchain

Know Your Customer (KYC) is the regulatory requirement for financial institutions — including most crypto exchanges — to verify customer identities. Standard KYC: government ID, address proof, sometimes selfie verification. Enhanced KYC for high-volume customers includes source-of-funds documentation. KYC requirements vary by jurisdiction; the US enforces strict KYC at on/off-ramps. DeFi protocols often don't require KYC, but the trend is toward more regulation. Privacy-focused tools (privacy coins like Monero, mixers) face significant regulatory pressure. The Tornado Cash sanctions (2022) demonstrated that even smart contracts can face US sanctions; OFAC compliance affects validator behavior across major blockchains.

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