KYC stands for “Know Your Customer” and refers to the process of a business verifying the identity of its clients and assessing their potential risks for money laundering or financing terrorism.

The KYC process typically involves a business collecting identifying information about its clients, such as their name, address, and date of birth, and verifying this information through documents such as a government-issued ID or passport. The business may also assess the client’s risk level based on factors such as the client’s source of funds and the purpose of the business relationship.

KYC is an important part of the financial industry’s efforts to combat financial crimes, and it is required by law in many countries. Businesses that do not follow KYC procedures may be at risk of fines and other penalties.
In the context of cryptocurrency, KYC may be required when opening a new account on a cryptocurrency exchange or when participating in initial coin offerings (ICOs). This is to ensure that the exchange or ICO is in compliance with anti-money laundering regulations and to protect against potential risks such as fraud.

KYC is very important in cryptocurrency in which this means you need a valid government issued ID card for user verification means.