Technical Definition

KYC

KYC, or know your customer, is the process financial and crypto service providers use to identify and verify customers.

By Crypto University Editorial
KYCTravel RuleMiCA

✦ Key Insight

The term can affect licensing, reporting, customer checks, market access, or how a crypto activity is treated in a jurisdiction.

✕ Common Misconceptions

Rules vary by jurisdiction and can change. Always check the current official regulator or legal text rather than relying on a generic definition alone.

Detailed Explanation

KYC, or know your customer, is the process financial and crypto service providers use to identify and verify customers. It is used in legal, regulatory, compliance, or tax frameworks that can apply to crypto assets and service providers.

In Practice

“A crypto business or user may encounter this term when checking licensing, onboarding, reporting, or jurisdictional requirements.”

Dig Deeper

MiCA

MiCA stands for the Markets in Crypto-Assets Regulation. It is a European Union regulatory framework covering certain crypto-assets, their issuers, and crypto-asset service providers. MiCA primarily addresses crypto-assets and related services not already covered by other EU financial-services legislation.

KYC

KYC, or know your customer, is the process financial and crypto service providers use to identify and verify customers.

Travel Rule

The Travel Rule is an anti-money-laundering requirement for specified financial transfers that requires certain originator and beneficiary information to accompany or be exchanged with qualifying transfers.