What is KYC (Know Your Customer)?
What is the reason Cryptocurrency Exchanges require KYC?
Why to Avoid KYC in Crypto?
How to buy Crypto without KYC?
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2023-12-29clock5 minutes

What is KYC (Know Your Customer)?

Let's delve into KYC and understand why it holds such prominence in the realm of cryptocurrencies.

KYC, or "Know Your Customer," constitutes a set of principles designed to aid financial institutions in authenticating their customers' identities. Furthermore, it serves as a tool to assess an individual's financial capability and potential risk factors.

KYC verification encompasses various checks, including:

  1. ID verification - Involving documents such as passports and driving licenses.
  2. Facial/biometric scanning - Utilizing advanced technology to verify unique personal features.
  3. Payment method verification - Confirming the legitimacy of the chosen payment method.

The KYC process is predominantly automated. On platforms like Cryptal, the system efficiently determines your authenticity as a real human and verifies the accuracy of the provided information within a few minutes.Top of Form

What is the reason Cryptocurrency Exchanges require KYC?

As cryptocurrency gains widespread popularity, it inevitably attracts the attention of illicit activities, ranging from money laundering to various forms of scams. KYC emerged as a response to these challenges, driven not only by the need to safeguard the industry but also in response to growing regulatory pressures, particularly from Western authorities.

The primary role of KYC is to shield crypto exchanges and other platforms from individuals seeking to launder unlawfully acquired funds. Beyond that, it serves crucial purposes for governments, aiding in the regulation of taxation and facilitating the tracking of stolen funds. These functions are indispensable for ensuring the safety and security of the crypto industry, serving as a necessary foundation if cryptocurrency is to achieve full mainstream adoption.

Why to Avoid KYC in Crypto?

Despite the presence of KYC, cryptocurrency maintains a higher level of privacy and decentralization compared to fiat currencies. Nevertheless, some users opt to avoid any digital footprint altogether. The verification process, while serving its purpose, can be an additional, occasionally cumbersome step for individuals looking to access cryptocurrency. Moreover, not everyone feels at ease sharing their personal data.

Fortunately, there exist several avenues to purchase and trade Bitcoin and other cryptocurrencies without undergoing KYC.

How to buy Crypto without KYC?Top of Form

One method to acquire cryptocurrency without going through KYC is by utilizing Bitcoin ATMs. It's important to verify that the specific Crypto ATM supports the buying and selling of your desired cryptocurrency.

For instance, here in Georgia, Cryptomat Bitcoin ATMs provide a convenient option to purchase BTC or other cryptocurrencies. With Cryptomats, the process is straightforward: insert cash into the machine, select the desired cryptocurrency, scan your wallet's QR code, and you've successfully obtained your crypto anonymously, free from any KYC policies.

Also, keep in mind that you don’t need any experience to do that.

A step-by-step guide on how to buy crypto via a crypto machine?

1st Step: Crypto Wallet

Create a Crypto Wallet where you can store all your crypto assets safely. Keep in mind that not all the wallets support all the digital assets. For instance, Bitcoin should solely be stored in the Bitcoin Wallet.

Create the appropriate crypto wallet.

2nd Step: Find Crypto Machine

You can find all the Cryptomat Crypto machines throughout Georgia in shops and shopping malls.

For the exact location, see here.

3rd Step: Buy Crypto