What are KYC and Blockchain? Why is KYC Important for Crypto Exchanges?

Blog / What are KYC and Blockchain? Why is KYC Important for Crypto Exchanges?

KYC and blockchain have become two concepts that are often used together lately. Due to the anonymity it offers, blockchain technology has seen rapid global expansion and now faces the difficulty of financial compliance. The usage of blockchain technology has increased over the past several years, even though it has not yet become widely used. Investors are drawn to the blockchain's decentralized structure to safeguard their funds through cryptocurrencies and other digital assets.

Investors are given more privacy because central banks do not issue cryptocurrencies. However, this anonymity makes it easier for money-laundering criminals to use stolen money. Because of this, it is now more important than ever to secure the data of cryptocurrency users. At this stage, you come across the use of KYC and blockchain together.