"Why does this exchange want my ID?" is a common question for anyone new to regulated crypto platforms. Here's why KYC (Know Your Customer) exists.Exchanges operating legally in most countries are required to verify user identity, largely to prevent money laundering and comply with financial regulations — similar to why a bank asks for ID when opening an account.
What it usually involves – A government ID, sometimes a selfie or proof of address, verified before you can deposit/withdraw large amounts (or sometimes at all).
What it unlocks – Higher withdrawal limits, fiat on/off ramps, and access to more features generally require full verification.
Privacy tradeoffs – It does mean trusting the exchange with sensitive personal data, which is part of why exchange security matters so much.
Do you stick to KYC'd exchanges only, or do you also use non-KYC platforms for certain things?
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