Glossary · Industry
KYC for Crypto Exchanges
Crypto-asset service providers must verify customers under the same AML frameworks as other financial institutions, with regulators such as the FATF requiring identification before trading, withdrawals and transfers above thresholds.
What KYC and AML controls look like in crypto
- Identity document verification with liveness at account opening.
- Sanctions and PEP screening.
- Source-of-funds assessment.
- Biometric re-authentication for withdrawals.
- Continuous monitoring and re-KYC.
Common challenges
- Very high fraud pressure and synthetic identities.
- Rapidly changing rules across jurisdictions.
- Users who value pseudonymity.
How IDWise supports crypto
The Continuous Trust Platform is configured to the regulator and risk profile of each crypto customer, combining the modules below in one journey with a complete audit trail.
Document Verification →Facial Biometrics →AML, PEP & Sanctions Screening →Questionnaire & Risk Engine →Face Biometric Authentication →
Frequently asked questions
Is KYC mandatory for crypto exchanges?
In most regulated jurisdictions, yes.
What KYC do exchanges collect?
Verified identity document, selfie liveness, address and source of funds, scaled by trading limits.
How is fraud handled at scale?
Automated verification with device intelligence and duplicate detection, routing only exceptions to review.
Related terms
See how IDWise applies this in practice.
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