The Vibe: The ID verification process that centralized platforms require — prove you’re a real person so they can follow government rules.
The Details: KYC is the “Know Your Customer” check, where you submit personal info (passport/ID, selfie, address proof) to comply with anti-money-laundering (AML) and counter-terrorism laws. It’s mandatory on most CEXs (Coinbase, Binance, Kraken) for fiat deposits/withdrawals, high-volume trading, or certain features. DEXs and non-custodial wallets usually skip KYC (permissionless). In 2026, KYC is stricter in many countries (EU MiCA rules, U.S. regs), but privacy-focused chains and DEXs remain KYC-free.
Pro Tip: KYC adds security (protects against fraud) but reduces privacy. Use regulated CEXs with KYC for fiat on-ramps; switch to self-custody wallets after buying. Never share KYC docs with unverified sites — scams fake KYC pages to steal IDs.