LateLune / Guides / What is KYC?

What is KYC, and why so many people avoid it

Know your customer sounds harmless. In practice it's a permanent file with your face, your ID and your money, held by companies that get hacked.

KYC stands for "know your customer". Banks, exchanges and payment companies are required to verify who you are before they let you use them. That usually means a photo of your ID, a selfie, sometimes proof of address.

Why it exists

The official reason is fighting money laundering and fraud. Regulators require it, and companies that don't comply get fined or shut down.

Why people don't like it

Breaches. KYC data is a goldmine for criminals, and it leaks. Crypto exchanges, fintech apps and identity verification vendors have all exposed customers' IDs and selfies. You can change a password. You can't change your face.

It follows your money. On crypto exchanges, KYC links your identity to the coins you buy. Every coin that leaves the exchange carries that link with it.

It's permanent. Companies keep KYC records for years, often long after you close the account.

It's often pointless. For small, everyday payments, asking for a passport is wildly out of proportion.

Living with less KYC

Use services that don't need it, like LateLune.
Get crypto peer to peer or by swapping. See how to buy Monero without KYC.
Use cash where you can.
When you must do KYC, give the minimum and close accounts you don't use.

FAQ

Is avoiding KYC illegal?

Using services that don't require it is legal in most places. Lying on a KYC form is not.

Do all crypto services need KYC?

No. Wallets, decentralized exchanges and many shops don't.

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