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It is part of a broader set of measures that regulators around the world use tofight money laundering.In other words, it stops bad actors from hiding the illicit source of their money behind legitimate financial activity.KYC is one of the biggest regulatory hurdles that crypto firms have had to clear in recent years.
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Many decentralized services are designed to allow customers to remain anonymous and keep their personal information private from any central authority.
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AI for Game Testing and Bug Detection ✌️【Part-Time Opportunities】✌️Small start, big rewards! ₹500 to grow your wealth with minimal risk.The following year, the company said all its users had been verified, before announcing a$100 millionsettlement with regulators.KYC requirements do not apply todecentralized exchanges(DEXs), meaning those that organize trades through smart contracts instead of acentral trading deskare not required to disclose their identities.
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In a bid to shrug off KYC requirements, ShapeShift pivoted business models andrelaunched as a DEXin 2021.Some crypto exchanges avoid KYC requirements by domiciling in softer regulatory environments.
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