security-privacyintermediateunit-8

KYC

Definition

Know Your Customer: identity checks used to verify users, especially in finance and crypto.

In Plain English

KYC is like checking an ID before allowing someone into a regulated service.

Real-World Example

A crypto exchange may require KYC before letting users buy tokens.

Why It Matters for Your Work

KYC affects compliance, user friction, fraud risk, and launch timelines.

Common Mistake

Leaving KYC planning until the end of a financial or crypto product build.

Related Terms

PII

Personally Identifiable Information—data that can identify a specific individual.

Compliance

Meeting legal, regulatory, or industry standards for data handling and security.

Wallet

A tool that lets someone hold and use crypto assets by controlling private keys.