TECHNICAL CONCEPTS

KYC (Know Your Customer)

Definition

Know Your Customer (KYC) is a regulatory process requiring businesses to verify the identity of their clients. In crypto, some centralized platforms require KYC, while DeFi protocols typically operate without it.

Example

💡 Example

Centralized exchanges like Coinbase require KYC verification before you can trade, but DEXs like Uniswap allow trading without identity verification.

Risks to Consider

⚠️ Risks
  • Privacy loss
  • Data breaches
  • Regulatory compliance

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