Blockchain KYC
Blockchain KYC refers to Know Your Customer processes for crypto-asset exchanges, wallets and other blockchain-based services, and to proposals for sharing verified KYC attributes across institutions using distributed ledgers.
Why it matters
Crypto-asset service providers are subject to AML rules in most major jurisdictions and must verify customers before allowing trading or withdrawals, while the ecosystem explores reusable KYC to reduce repeat onboarding.
How it works
- Identity document verification and biometric liveness at account opening.
- Screening against sanctions and PEP lists.
- Risk assessment including source of funds.
- Ongoing monitoring and re-verification.
Common challenges
- High fraud pressure and pseudonymous counterparties.
- Rapidly changing regulation across jurisdictions.
- Balancing privacy expectations with compliance.
How IDWise supports this
IDWise addresses this within the Continuous Trust Platform through the following modules, configured per market, product line and risk tier.
Frequently asked questions
Do crypto exchanges need KYC?
In most regulated jurisdictions, yes, under the same AML frameworks as other financial services.
What is reusable KYC?
The idea that a customer verified once could share attested attributes with other institutions, reducing repeat onboarding.
Is KYC stored on the blockchain?
Generally no; personal data is kept off-chain for privacy, with only proofs or references on-chain in some designs.
Related terms
Talk to an IDWise specialist about your markets, regulators and risk controls.