KYC in Crypto: Yay or Nay?

Written by BTSE

July 6, 2023

KYC in Crypto: Yay or Nay?

For any customers of a bank, it’s natural to provide personal identification when opening a new bank account. After that, whenever the same customer visits the branch to initiate transactions, the bank’s staff will verify their identity, typically by asking them to provide a valid government-issued ID.

The initial verification is part of a “know your customer” (KYC) process, which is important not only for linking a client’s personal information to an account, but also to evaluate their general suitability to open an account and perform transactions.

KYC processes are important because they maintain a safe, stable relationship between financial service providers and customers. They not only help service providers serve each customer’s needs, but also ensure that their services are compliant with regulations that govern digital assets. This means KYC processes mitigate money laundering and transactions that are initiated for prohibited purposes.

In other words, KYC allows digital asset trading platforms to make sure that their business is being utilized by individuals and institutional investors who are legitimate.


The Advantages of KYC for Cryptocurrency Services


Customers who undergo KYC give crypto service providers the information they need to verify their identity. This makes it possible to restore access to their account in case they lose access, such as if they lose their password or become a victim of a hack.

The transparency that KYC brings about is extremely important for users, as it provides a path to compliance for tax and legal regulations in their respective locations. As a legal obligation in most jurisdictions, KYC helps users ensure that they will not encounter complications such as tax evasion penalties in the future.

Additionally, there is a layer of trust established via KYC procedures. When a user knows that the buyers and sellers using the same platform have been vetted and verified, it becomes much less likely to encounter malicious activity. This makes the platforms that have KYC procedures, such as BTSE, safer to use.

Finally, another upside for KYC in crypto is that it enables a service provider to operate in even the strictest jurisdictions, reaching additional users around the world. This is a crucial step toward making the crypto space safe and accessible for newcomers, leading to an influx of capital into digital assets.


KYC As a Safety Net


In the context of investing in digital assets, KYC typically involves providing an image of a government-issued ID and facial verification. Customers who provide this information to exchanges will be able to add a bank account so that deposits and withdrawals can be performed smoothly. In addition, KYC with centralized exchanges typically also allows users to increase their daily or monthly withdrawal and purchase limits.

Despite the benefits that it provides, KYC is often seen as a hurdle in the cryptocurrency space. However, customers who provide their data to secure their accounts on platforms such as BTSE can use the services with peace of mind, knowing that their personal data is secure and that they have a safety net should their access be compromised. 

Additionally, KYC compliance enables exchanges to ban users who engage in malicious activity such as money laundering, or even freeze funds that were gained by exploiting other users. This creates a safer, more stable investment and trading environment for all users.

As more users undergo KYC, the crypto sector can enhance its reputation and foster a positive perception, which in turn encourages more people to acquire blockchain-based assets as part of their long-term investment strategy.




While users in most jurisdictions can use many of BTSE’s features without undergoing KYC procedures, verifying a user’s identity can lead to additional services, such as crypto-to-fiat off-ramping to bank accounts. 

BTSE’s KYC procedures involve a few simple steps on the Identity Verification Page. Individual users need to provide just three items:

  1. An image of a government-issued photo ID, such as the information page of a passport or a driver’s license
  2. Proof of address on an official document such as a bank statement, credit card bill, utility bill, or national ID
  3. A sharp selfie

Institutional clients should submit five items:

  1. Certificate of incorporation or business registration
  2. Certificate of incumbency
  3. Register of directors
  4. Proof of the director’s residential address
  5. Photo of the information page of the director’s passport

The process for both individual and institutional users is usually 1 to 2 business days. Confirmation is issued by email when the user’s identity has been verified.

To find out more about BTSE’s KYC requirements and procedures, visit our tutorial article for a step-by-step guide on how to complete KYC on BTSE. Additional inquiries can be submitted via BTSE’s feedback form or by opening a ticket on Discord.


Our aim is to create a platform that offers users the most enjoyable trading experience. If you have any feedback, please reach out to us at or on Twitter @BTSE_Official.

Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.

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