KYC verification, also known as real-name or identity verification, is a critical procedure used by financial institutions and cryptocurrency exchanges to confirm the identity of their users. This process not only enhances platform security but also protects individual accounts from unauthorized access and fraudulent activities.
Today, most centralized crypto exchanges require users to complete KYC during registration. It's not just a compliance measure — it’s a foundational step in building trust, ensuring regulatory adherence, and enabling higher transaction limits. In this comprehensive guide, we’ll explore what KYC means, why it matters, how the process works, and provide detailed walkthroughs for completing KYC on major platforms like Binance, MAX, and BTCC.
👉 Discover how top exchanges streamline secure onboarding with advanced KYC systems.
What Does KYC Mean?
KYC stands for Know Your Customer, a global standard adopted by banks, financial institutions, and digital asset platforms to verify user identities. The primary goal of KYC is to prevent identity theft, financial fraud, money laundering, and terrorist financing.
Under KYC protocols, organizations collect personal information such as government-issued ID documents (e.g., passport, driver’s license), proof of address, and biometric data. This allows them to assess risk levels, monitor transactions, and comply with anti-money laundering (AML) regulations.
In the context of cryptocurrency, KYC helps bridge the gap between decentralized technology and traditional financial oversight. While crypto was initially associated with anonymity, increased regulation has made identity verification essential for mainstream adoption and legal operation.
Why Do Crypto Exchanges Require KYC?
Despite blockchain's decentralized nature, crypto exchanges operate within regulated financial ecosystems. Governments worldwide now classify certain digital asset services as regulated activities, requiring strict KYC enforcement.
For example, Taiwan’s Financial Supervisory Commission (FSC) began regulating virtual currency platforms in July 2021, mandating real-name registration and customer due diligence. Similar rules exist across the U.S., EU, Singapore, and Japan.
Without proper KYC procedures:
- Illicit actors could exploit platforms for money laundering
- Scammers might create fake accounts to manipulate markets
- Regulatory penalties could threaten exchange operations
Reputable exchanges like Binance, MAX, and BTCC enforce KYC to ensure compliance, protect users, and maintain long-term sustainability. Completing KYC unlocks full functionality — including higher withdrawal limits, fiat deposits/withdrawals, and participation in promotional campaigns.
👉 See how secure trading begins with reliable identity verification.
Common KYC Verification Steps
While specific requirements vary by platform and region, most KYC processes follow these core steps:
1. Email Verification
Register using a valid email address. The exchange sends a confirmation link; clicking it activates your account.
2. Phone Number Verification
Enter your mobile number to receive an SMS code. Inputting the code confirms ownership of the device.
3. Identity Document Submission
Upload a clear photo or scan of an official ID — such as a passport, national ID card, or driver’s license. Some platforms require both front and back images.
4. Facial Recognition (Selfie Verification)
Take a live selfie that matches the photo on your ID. Advanced AI compares facial features to detect spoofing attempts.
5. Proof of Address (if required)
Some exchanges ask for utility bills or bank statements issued within the last three months to verify residency.
6. Bank Account Binding (for Fiat Transactions)
To deposit or withdraw local currency (e.g., TWD), link a verified bank account. This often involves micro-deposit confirmation.
These layered checks significantly reduce fraud risks while enhancing overall platform integrity.
How to Complete KYC on Major Crypto Exchanges
1. Binance KYC Verification Process
Step 1: Register and Verify Email
Visit the official Binance website and sign up using your email. Avoid phone registration if possible — email recovery is more reliable.
After submitting your details, complete a CAPTCHA puzzle and check your inbox for a verification email.
Step 2: Begin Identity Verification
Log in and navigate to "ID Verification" under your profile settings. Select "Individual" and click "Start Now."
Step 3: Enter Personal Information
Fill in your full name and residential address. Use characters matching your ID document exactly.
Step 4: Upload ID Document
Choose from passport, national ID, or driver’s license. Ensure all text is legible and corners are fully visible.
Step 5: Complete Face Scan
Use your webcam or smartphone camera to take a real-time selfie. Follow on-screen prompts to move your head slightly for liveness detection.
Once submitted, Binance typically reviews applications within minutes to 24 hours. You’ll receive an email upon approval.
2. MAX Exchange KYC Guide
Level 1 Verification
Step 1: Phone Number Confirmation
Go to Account Settings > Mobile Number > Set, enter your number (omit leading zero), request OTP, and submit.
Step 2: Basic Profile Setup
Under Basic Info Verification, input details exactly as shown on your ID. Optionally register an invoice carrier (e.g., mobile barcode).
Step 3: Nationality & ID Verification
Upload:
- A handheld ID photo: Hold your ID next to a handwritten note stating “For MAX Platform Registration Only” with today’s date.
- Clear photos of your ID front/back
- A second ID (passport, driver’s license, health insurance card)
Ensure lighting is good, no glare appears on the ID, and nothing obstructs text.
Review processing takes 3–5 business days.
Level 2 Verification (Required for TWD Withdrawals)
Link a Taiwanese bank account via Bank Account > Add Account. Supported banks include major institutions like CTBC and Cathay United.
The system deposits $1 NT into your account for validation. Verification completes within 1–3 business days after successful identity check.
Only Level 2 users can trade fiat and enjoy reduced fees.
3. BTCC KYC Procedure
Step 1: Email or SMS Registration
Go to the BTCC website or app and register with your email or phone number. Confirm via OTP.
Step 2: Start Real-Name Verification
After logging in, tap your profile icon → "Real-Name Verification" → "Start."
First, bind a mobile number for added security.
Step 3: Submit Identity Details
Select your country/region and ID type (e.g., Taiwan National ID). Upload a clear image of the front side of your document.
BTCC recommends using a passport for faster processing, though IDs and driver’s licenses are accepted.
Step 4: Facial Authentication
Proceed to face verification by aligning your face within the frame. The system uses AI to match your live image with the uploaded ID photo.
Processing time is typically under five minutes. If pending longer, contact customer support.
Optional: Enable Google Authenticator
For enhanced security, set up two-factor authentication (2FA) using Google Authenticator under Withdrawal Verification.
Can You Use Crypto Exchanges Without KYC?
While some platforms allow limited access without verification, full functionality requires KYC completion. Unverified accounts often face restrictions such as:
- Lower deposit/withdrawal limits
- No fiat trading capabilities
- Ineligibility for bonuses or referral rewards
- Restricted access to derivatives or staking products
Exchanges like Binance, MAX, and BTCC require KYC before enabling high-value transactions or new user promotions.
Though optional in theory, skipping KYC severely limits utility — making it impractical for serious traders.
Why Might KYC Verification Fail?
Common reasons for rejection include:
- Blurry or poorly lit document photos
- Cropped edges or reflective glare on ID
- Expired or invalid identification
- Mismatch between name spelling on form and ID
- Selfie issues: Wearing hats/glasses, poor lighting, filters applied
- Duplicate submissions: One identity per account policy enforced
If rejected, review feedback carefully and re-upload corrected materials promptly.
Frequently Asked Questions About KYC
What is KYC verification?
KYC (Know Your Customer) is a regulatory process where financial institutions verify users’ identities to prevent fraud, money laundering, and illegal activities.
How do I complete KYC?
Typically: register → verify email/phone → upload ID → complete facial scan → wait for approval.
How long does KYC take?
Most automated systems approve within minutes. Manual reviews may take up to 5 business days depending on volume and complexity.
Is my personal data safe during KYC?
Reputable exchanges use encrypted storage and strict privacy policies to protect sensitive information. Never share verification codes or private keys.
Do all exchanges require KYC?
Most centralized exchanges (CEXs) do. Decentralized exchanges (DEXs) usually don’t but lack fiat gateways and advanced trading tools.
Can I have multiple verified accounts?
No — each person can verify only one account per exchange using unique identification.
👉 Learn how leading platforms balance security and user experience in identity checks.
Final Thoughts
KYC verification is no longer optional for serious crypto users. As global regulations tighten, completing identity checks becomes essential for accessing core features on trusted exchanges like Binance, MAX, and BTCC.
Beyond compliance, KYC strengthens account security, prevents fraud, and enables seamless fiat-to-crypto transitions. While the process demands personal information, reputable platforms employ robust encryption and data protection standards.
By understanding the steps involved — from document submission to facial recognition — you can confidently navigate KYC and unlock the full potential of digital asset trading.
Whether you're new to crypto or expanding your portfolio, taking time to complete verification ensures safer, more flexible access to the evolving world of blockchain finance.