KYC (Know Your Customer)
Definition
The identity verification process that regulated exchanges and virtual asset service providers (VASPs) are legally required to perform before allowing users to deposit or withdraw funds. KYC records are the primary mechanism for converting a pseudonymous address into a named individual.
Related terms
- Address clustering
- A technique that groups blockchain addresses likely controlled by the same entity. The most common method uses the common-input-ownership heuristic: all input...
- Blockchain explorer
- A web interface or API that indexes a blockchain and allows queries by address, transaction hash, or block. Examples: Blockstream.info for Bitcoin,...
- Mixer / tumbler
- A service that pools cryptocurrency from multiple users, exchanges it, and returns equivalent amounts to different addresses, intentionally breaking the transaction graph....
- UTXO (Unspent Transaction Output)
- The fundamental accounting unit of the Bitcoin protocol. Each transaction consumes previous UTXOs as inputs and creates new UTXOs as outputs. The...
- VASP (Virtual Asset Service Provider)
- The Financial Action Task Force (FATF) term for businesses that exchange, transfer, or custody cryptocurrency on behalf of customers. VASPs are subject...
Explained in
- Cryptocurrency Tracing and Blockchain AnalysisThe identity verification process that regulated exchanges and virtual asset service providers (VASPs) are legally required to perform before allowing users to...