What is KYC and Why It Matters

Required Documents: Government-issued photo ID (passport, driver's license, national ID card—must be valid, not expired), proof of address dated within 90 days (utility bill, bank statement, government correspondence showing name and address matching ID).

Personal Information: Full legal name (exactly as on ID), date of birth, residential address (no PO boxes), nationality/citizenship, email address, and phone number (SMS verification).

Withdrawal Limits: Typically $2,000-$10,000 daily after Basic KYC. Sufficient for most retail investors.

Additional Requirements: Selfie verification (hold your ID next to your face), liveness detection (facial recognition matching your ID photo in real-time), and video verification call (some platforms for high-value accounts).

Financial Information: Source of funds documentation (employment letter, pay stubs, tax returns), bank statements (last 3-6 months), social security number or tax ID (US platforms), and occupation/employer details.

Withdrawal Limits: $50,000-$100,000+ daily. Required for professional traders and institutional accounts.

Corporate Documents: Business registration certificate, articles of incorporation, ownership structure (beneficial owners holding 25%+ equity), board resolutions authorizing crypto trading, and corporate tax ID (EIN).

Individual Verification: KYC for all directors, officers, and beneficial owners. Background checks for key personnel. AML compliance officer designation.

Withdrawal Limits: Unlimited (subject to transaction monitoring). Required for hedge funds, family offices, and corporate treasuries.

Gather valid government-issued photo ID (passport preferred—accepted everywhere; driver's license or national ID also work but check exchange requirements). Ensure ID is not expired—most platforms reject IDs expiring within 6 months. For proof of address, obtain a recent document (utility bill, bank statement, government correspondence, rental agreement) dated within the last 90 days showing your full name and address matching your ID. Set up good lighting for photos—natural light or bright indoor lighting, no shadows or glare. Have your smartphone or webcam ready for biometric verification. Pro tip: Use passport if traveling or planning to—it's universally accepted and simplifies multi-exchange verification.

Sign up on your chosen exchange (Coinbase for beginners, Kraken for lower fees, Gemini for security) with your email address and strong unique password (16+ characters minimum, use a password manager like 1Password or Bitwarden). Verify your email by clicking the confirmation link sent by the exchange. Before submitting any documents, enable two-factor authentication (2FA) using Google Authenticator or Authy—never use SMS 2FA for crypto accounts due to SIM swapping attacks where hackers port your phone number. 2FA protects your account from credential stuffing attacks before you've submitted valuable identity documents. Learn more about cryptocurrency security best practices.

Navigate to account settings → Identity Verification (or KYC section). Upload clear, high-resolution photos of your ID: all four corners visible, no glare from lighting, all text readable, MRZ (machine-readable zone) at bottom of passport clearly visible. For proof of address, ensure the document is dated within 3 months, shows your full legal name exactly as on ID, and displays your complete residential address (house number, street, city, postal code). Enter your personal information with extreme care: full legal name (exactly as on ID—middle names included), date of birth (double-check format: MM/DD/YYYY vs DD/MM/YYYY), residential address (no abbreviations), and nationality. Mismatches between ID and entered data are the #1 cause of rejection. Review everything three times before submitting.

Most exchanges now require liveness detection via selfie or facial recognition to prevent identity fraud (fake IDs, stolen IDs). Follow the on-screen instructions carefully: remove glasses, hats, and face masks, ensure bright, even lighting (no backlighting or shadows), center your face in the frame filling 70-80% of the screen, maintain a neutral expression (don't smile or make faces), and complete any requested gestures (turn head left/right, blink, look up/down). The AI system matches your live biometric data against your ID photo—checking facial structure, eye position, and skin tone. If using mobile, grant camera permissions when prompted. This usually takes 30-60 seconds and provides real-time feedback. Multiple attempts allowed if rejected—common issues include poor lighting, face not centered, or wearing glasses.

Automated systems approve clear, straightforward submissions within 10-30 minutes. If flagged for manual review, expect 24-48 hours (weekdays; weekends may add delay). Manual review occurs for: blurry or low-quality photos, name/address mismatches, high-risk jurisdictions (sanctioned countries, tax havens), uncommon document types, or age discrepancies. Check your email regularly for updates—exchanges send approval confirmations or rejection reasons. If rejected, carefully read the specific issue cited (e.g., "ID expired", "Address doesn't match", "Photo too dark"), correct the problem, and resubmit with improved documents. Common fixes: retake photos in better lighting, provide alternate proof of address with matching name/address, scan documents instead of photographing them for higher quality. Once approved, you'll receive email confirmation and your account limits will unlock—typically $2K-$10K daily withdrawals for Basic KYC.