KYC In Crypto: A Step-By-Step Process For Individuals To Complete Verification On Crypto Platforms

Individuals seeking to buy, sell or trade in cryptocurrencies, have to prove their identity through the know your customer (KYC) process just as with every other financial instrument. This also helps cryptocurrency platforms confirm user details while maintaining security standards, thereby ensuring that accounts are legitimate and that users can securely access all features of the exchange, including facilities of trading, withdrawals, and other essential services.

Why KYC Matters for Users

Crypto KYC protects users against fraud, secures accounts, and grants access to platform features, such as increased transaction limits. During the process, users enter personal information, such as their complete name, date of birth (DOB), and residence address, which is then verified against government-issued identification, such as Aadhaar, passport, driving licence, Permanent Account Number (PAN), and so on. This verification can maintain a secure environment that prevents unauthorised access to the user’s account.

Mridul Gupta, founding partner, CoinDCX says: “KYC is essential for trust and stability in financial markets. Verified identities make it difficult for bad actors to exploit anonymity and provide regulators with better visibility. Strong KYC frameworks also reflect the maturity of the digital asset industry and bring it closer to traditional finance standards.”

Steps to Complete Crypto KYC

While KYC requirements may vary slightly across platforms, here are the common steps most users need to follow for verification.

1. Account Creation: This process begins with registering on a cryptocurrency exchange or wallet website by using a working email address and mobile number.

2. Profile Set-up: After registration, users must provide basic personal information, such as their full name, DOB, and address.

3. Identity Verification: At this stage, the platform asks for a government-issued identity document, such as a passport, Aadhaar, or driver's license to verify the information provided.

4. Selfie or Photo Verification: Users also need to upload a clear photo or take a live selfie with their provided ID in order to verify the documents' authenticity.

5. Review and Approval: The platform then reviews all the information and documents. Verification can take anywhere from a few minutes to several days depending on the system in place.

6. KYC Completion: The user's KYC is marked as complete after a successful verification, allowing them to access all platform features, including higher transaction limits, withdrawals, and investment options.

Common KYC Mistakes to Avoid

While KYC appears to be simple, users frequently make mistakes that may cancel or delay verification. Gupta highlights a few common mistakes that often lead to KYC rejection.

“Users often face KYC rejections due to mistakes, such as entering details that don’t match the submitted documents, uploading blurry or unclear images, missing key information, or using documents of minors. Selfies should be taken in well-lit conditions, without filters, within 24 hours of uploading the documents, and without glasses. Document images must be clear, original, show all sides, and match the user’s image on the government-issued IDs."