Know your customer (KYC)

The identification and verification of customers by regulated entities, including VASPs, under AML/CFT rules. The broader regulatory process, known as customer due diligence (CDD), also includes identifying beneficial owners, understanding the purpose of the business relationship and ongoing monitoring. KYC and account records held by a service, including identity documents, contact details, IP logs and linked bank accounts, can help link an on-chain address to a real-world identity. However, the account holder is not necessarily the actual controller of the funds, and records may be incomplete, unreliable or no longer available due to retention limits.