How to fill out KYC documents on a cryptocurrency exchange: complete guide

If you plan to trade on cryptocurrency exchanges, sooner or later you will encounter the requirement to undergo verification. This is not a new invention of the platforms — it is a global standard that is becoming stricter over time. Let's understand why this is necessary and what documents you will need to prepare.

The History of KYC: Where These Requirements Came From

Know Your Customer (KYC) is not just the name of a procedure; it is a mandatory standard in the financial world. It all started simply: banks collected basic information about customers. But after 2001, when the USA implemented the Anti-Terrorism Act, the requirements tightened. Soon, at the international level, the Financial Action Task Force (FATF) was created, which began establishing global standards as early as 1989.

At the same time, the AML system (fighting money laundering) was developing. KYC and AML work together, like two sides of the same coin: KYC verifies identity, AML monitors suspicious transactions. Countries and jurisdictions that are part of the FATF apply these principles in their legislation.

When you are asked to pass verification

On most cryptocurrency exchanges, verification is required even before opening an account. Some platforms allow you to create an account without KYC, but the functionality of such a profile is heavily limited — usually, this concerns minimal trading volumes. If you plan to work seriously with assets, you will have to go through verification.

What KYC documents need to be prepared

Banks and exchanges require roughly the same set of documents, although the process may differ. The main package includes:

Identity documents:

• Passport (basic version)
• Driver's license or national ID with a photo
• Voter ID
• Social Security Number
• Bank card number (PAN)

Address Verification:

• Utility bill ( electricity, gas, internet )
• Statement from another financial institution
• Rental housing agreement
• Statement from the credit card issuer

The verification process on different exchanges may vary — no single standard has been established. Each organization chooses its own approach.

What happens after you complete verification

KYC compliance is not a one-time procedure. After opening an account, the bank or exchange periodically updates customer information. They re-interview data, assign a risk level, and monitor transactions for compliance with due diligence requirements. Essentially, monitoring is ongoing.

Why is this needed for cryptocurrency exchanges

In addition to complying with the law, KYC helps platforms better understand their users and their needs. This is applied everywhere money and investments are involved. Even investment companies, according to rule 2090 FINRA, use similar verification.

The picture in the crypto sphere is special. The industry has long struggled with its reputation as a platform for illegal operations. Reducing fraud, money laundering, and financial crimes is a matter of survival for the cryptocurrency sector. KYC has become a tool for legitimization.

Disadvantages and Advantages

Honestly, KYC freezes processes. Verification takes time, adds bureaucracy, and irritates users. But the advantages outweigh the inconveniences: fraud is reduced, the risk of financial crimes is lowered, and the reputation of the industry is strengthened.

The only thing that would help is a global unified standard. Right now, each jurisdiction requires something of its own.

What to pay attention to before submitting documents

Before sharing confidential information, ensure that the company complies with the necessary security standards. Check the data protection policy, the presence of encryption, and user reviews about security. Your KYC documents are valuable information and should be kept under reliable protection. Platforms like Gate take this seriously, but overall, it remains a relevant issue for the entire industry.