What Is KYC and Why Does It Matter for Crypto?

What Is KYC and Why Does It Matter for Crypto?
KYC means “know your customer.” It refers to a financial institution’s obligation to carry out certain identity and background checks on its clients before allowing them to use its product or platform. It is part of a broader set of measures that regulators around the world use to fight money laundering.In other words, it stops bad actors from hiding the illicit source of their money behind legitimate financial activity.KYC clashes with crypto exchangesKYC is one of the biggest regulatory hurdles that crypto firms have had to clear in recent years. By its nature, the decentralized economy is prone to problems…