KYC (Know Your Customer) is a process used to check who a customer really is. It usually includes personal details, identity documents, and other checks before the service starts working with them.
But here is the important part: KYC is not required for every crypto service. It depends on how the service works and whether it holds or controls customer funds.
Why Is KYC Needed?
The main purpose of KYC is to understand who the service is dealing with and manage the risks associated with the customer.
Verification helps to:
Confirm the customer's identity.
Detect suspicious activity.
Assess risks.
Meet AML and other regulatory requirements.
AML (Anti-Money Laundering) is a broader set of measures designed to prevent money laundering and detect suspicious transactions. KYC is one part of AML.
What Does KYC Check
The exact process depends on the service, but it usually includes:
Data collection: name, date of birth, address, and other required information.
Document verification: passport, ID card, or another identity document.
Additional verification: for example, a selfie or face verification.
Risk assessment and determining the required level of verification.
In some cases, ongoing monitoring of transactions and customer information.
Where is KYC Used
KYC is especially common for services that handle financial operations and hold or transfer customer funds.
For example:
Banks.
Payment platforms.
Cryptocurrency exchanges.
Custodial wallets.
Other regulated financial services.
In these models, the service needs to know who controls the account and who is making the transactions.
KYC: Pros and Cons
KYC improves transparency, helps manage risks, and supports regulatory compliance.
At the same time, customers need to provide personal information and documents, adding extra steps to registration. For businesses, this means a more complex onboarding process and additional handling of user data.
KYC therefore makes sense where it is required by the service model and applicable regulations.
KYC in Crypto Payments
Not all crypto payment solutions work the same way.
In a custodial model, the service holds and manages customer funds. In this type of system, customer identification may be a necessary part of the platform's operation.
In a non-custodial model, funds are not transferred to the platform's balance. Payments go directly to the user's wallet.
When choosing a crypto payment solution, it is therefore important to look not only at whether KYC is required, but also at how the service handles funds.
KYC in CryptoNow
CryptoNow is a non-custodial solution for developers.
CryptoNow does not hold user funds or control their wallets or private keys. Payments go directly to the wallets you specify in the Dashboard.
No KYC or project approval is required to connect CryptoNow. Simply register and confirm your email.
You can then create a Merchant, set up wallets and payment methods, integrate the API, and start accepting crypto payments.
Conclusion
KYC is used by services that need to identify customers and manage risks related to their financial operations. It is a standard part of many financial and regulated platforms, but it is not a universal requirement for every crypto payment solution.
CryptoNow is non-custodial: it does not hold funds or control user wallets. This allows developers to integrate crypto payments through the API without going through KYC.
