How KYC works
KYC, or Know Your Customer, is the identity check a regulated financial service completes before serving you. You provide a government ID, a proof of address, and sometimes a selfie or liveness check; the provider verifies them against sanctions and politically-exposed-person lists. It runs once at account opening, and after that deposits and withdrawals are routine. KYC is paired with AML, the ongoing monitoring of transactions for suspicious patterns.
Where KYC applies in crypto
Any point where crypto meets the regulated financial system requires KYC: fiat on-ramps, centralised exchanges, and regulated brokers. Pure on-chain DeFi protocols usually do not, which is the autonomy trade-off of DeFi. Where UBK Markets Ltd provides your trading service, trade execution and client-money handling are governed by its applicable client agreement and policies. The arrangements for each account or service are identified in its client documentation.
Why it matters
KYC is the price of regulatory protection. The platforms that ask for it are the ones that can offer segregated funds, negative balance protection, and legal recourse. Platforms that skip it offer none of that. Treat a request for KYC as a sign of a regulated venue, not an inconvenience, and never trade real size on a venue that cannot tell you who holds your money.
Practical note
Have a clear ID and a recent utility bill or bank statement ready before you start; mismatched names or addresses are the usual cause of delays. Related reading: stablecoins, the usual funding rail once verification clears.
Read the full breakdown in our crypto trading guide.
