KYC (Know Your Customer) is the identity check a crypto service carries out before letting you buy crypto. It is part of AML (anti-money-laundering) rules, which aim to keep criminal money and terrorist financing out of the financial system. You usually provide your name, date of birth, address and a photo ID, and sometimes a selfie.
Before most crypto services let you buy, they ask you to prove who you are. This step is called KYC, short for Know Your Customer. It exists because anti-money-laundering (AML) laws apply to crypto businesses in much the same way as they apply to banks.
This guide explains what KYC and AML mean, which rules require them, what you may be asked for and what can slow a check down. For the steps that apply when you buy crypto on Coinmama, see how verification works on Coinmama.
What is KYC in crypto?
KYC is the process a crypto service uses to confirm that you are who you say you are. It usually happens when you open an account or before your first purchase, and many services simply call it verification.
A KYC check normally has three parts:
- Identifying you: collecting details such as your full name, date and place of birth, nationality and home address.
- Verifying you: checking those details against an identity document, such as a passport, or another reliable source.
- Screening you: checking whether you appear on a sanctions list or hold a prominent public role, which calls for extra care.
KYC does not always end after sign-up. Anti-money-laundering rules also expect services to keep an eye on accounts over time. That is why a service may ask for updated or extra information later, for example if your details change or a transaction looks unusual.
What is AML, and how is it different from KYC?
AML (anti-money laundering) is the wider set of laws and controls that aim to keep criminal money and terrorist financing out of the financial system. KYC is one part of AML: it covers who the customer is, while the rest of AML covers what happens with the customer’s money.
An AML programme at a crypto service usually includes:
- Customer due diligence: the KYC checks above, with deeper checks (enhanced due diligence) for higher-risk customers or transactions.
- Transaction monitoring: looking for activity that does not fit what the service knows about a customer.
- Reporting: telling the authorities about suspicious transactions.
- Record keeping: keeping customer and transaction records for a period set by law.
- The Travel Rule: passing the sender’s and recipient’s details along with crypto transfers between providers. Our guide to the crypto Travel Rule explains how it works.
As a buyer, you mostly see the KYC part. Monitoring, reporting and record keeping happen in the background.
Why do crypto services ask for ID?
Crypto services ask for ID because anti-money-laundering law in most major markets requires it. The global standards come from the Financial Action Task Force (FATF), an intergovernmental body that sets rules against money laundering and terrorist financing. FATF updated its Recommendation 15 in 2019 so that these standards apply to crypto businesses, which it calls virtual asset service providers (VASPs).
As of September 2026, FATF says these providers must apply the same preventive measures as banks and other financial institutions. That includes customer due diligence, record keeping and reporting suspicious transactions. They must also collect and pass on sender and recipient information when they make transfers.
The checks also help protect customers. They make it harder for someone to open an account with a stolen identity, and they help services keep people on sanctions lists out.
Not everyone likes KYC. Some people object on privacy grounds, because financial privacy mattered to many early crypto users. That debate continues, but it does not change what the law asks of services that follow AML rules.
Which KYC and AML rules apply in the EU, US and UK?
The details differ by region. These are the main rules as of September 2026. Whether you can buy through Coinmama where you live is a separate question: see restricted countries and states.
European Union
Today, the EU’s anti-money-laundering directive (Directive (EU) 2015/849) requires crypto-asset service providers to identify and verify their customers. Since 30 December 2024, MiCA (Regulation (EU) 2023/1114) has set EU-wide rules for these providers, and the Transfer of Funds Regulation (Regulation (EU) 2023/1113) has made them send sender and recipient details with crypto transfers. When a provider sends more than EUR 1,000 from a customer to a self-hosted wallet, it must also assess whether the customer owns or controls that wallet.
From 10 July 2027, the Anti-Money Laundering Regulation (Regulation (EU) 2024/1624) sets one AML rulebook across the EU. Crypto providers must then identify and verify customers even for one-off transactions under EUR 1,000, and run full customer checks from EUR 1,000. They also may not keep anonymous crypto accounts, including accounts that use anonymity-enhancing coins.
United States
In the US, the Bank Secrecy Act applies. In guidance from May 2019, the US Treasury’s Financial Crimes Enforcement Network explained that businesses that transmit convertible virtual currency, such as Bitcoin, are money transmitters. They must keep a written AML programme that includes verifying customer identification, filing reports and keeping records.
United Kingdom
In the UK, crypto businesses must follow the Money Laundering Regulations 2017, and the Financial Conduct Authority (FCA) supervises them for anti-money-laundering purposes. Since 1 September 2023, these regulations have also included a Travel Rule for crypto transfers.
What documents will I need for KYC?
Most services ask for your personal details and a government-issued photo ID. The exact list depends on the service, your country and the size of your purchase, and the service tells you what it needs. Common requests include:
- Personal details: your full name, date of birth, nationality and home address.
- A photo ID: usually a passport or national identity card, though some services accept other official photo IDs. EU rules refer to an identity document, passport or equivalent, or an approved electronic ID.
- A selfie or short video: used to check that you are the person on the ID and that you are really there when the check takes place.
- Proof of address: sometimes a recent utility bill or bank statement, for example when your ID does not show your address.
- Source of funds: for larger or unusual transactions, questions about where your money comes from, sometimes with a document such as a payslip. EU rules list this among the extra checks for higher-risk cases.
A few habits help a check go smoothly. Use a valid document that has not expired. Take photos in good light with all four corners visible. Make sure the name on your payment card or bank account matches the name on your ID.
How long does crypto verification take?
It depends on the service and on your case, so there is no single standard time. Automated checks can finish quickly, while a manual review by a compliance team takes longer.
Common reasons for delays:
- blurry, dark or cropped photos of your document;
- an expired ID;
- details that do not match, such as a different spelling of your name or an old address;
- extra questions for larger purchases, such as where your funds come from.
For help with verification on Coinmama purchases, see the Get verified help articles.
How does verification work on Coinmama?
Coinmama is a cryptocurrency exchange.
Verification is one of the steps in our guide on how to buy Bitcoin.
Can you buy crypto without KYC?
Not from services that follow anti-money-laundering rules: in most major markets they must verify their customers. Offers that promise to skip ID checks deserve extra caution, because they come with real risks:
- Scams: fake platforms and sellers can take your money and disappear.
- Frozen funds: a service may ask for ID later, for example when you try to withdraw, and hold your funds until you pass.
- Nowhere to turn: if something goes wrong, an unknown seller may give you no way to complain or get your money back.
Decentralized exchanges (DEXs) work differently. They are software that lets people swap crypto from their own wallets, and many do not ask for ID. That does not make them anonymous: transactions are recorded on a public blockchain, and Bitcoin transactions can often be traced.
For more on privacy when you buy, read can you buy Bitcoin privately? For other risks to check first, see is Bitcoin safe to buy? Tax is a separate topic, covered in crypto taxes: what to know before you buy.
Frequently asked questions
Sources
- FATF: Virtual assets (checked September 2026)
- EUR-Lex: Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA), Article 149 (checked September 2026)
- EUR-Lex: Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets, Articles 14, 38 and 40 (checked September 2026)
- EUR-Lex: Directive (EU) 2015/849 on preventing money laundering, Article 13 (customer due diligence) (checked September 2026)
- EUR-Lex: Regulation (EU) 2024/1624 (Anti-Money Laundering Regulation), Articles 19, 20, 22, 34, 79 and 90 (checked September 2026)
- US Treasury, Financial Crimes Enforcement Network: Guidance FIN-2019-G001 on business models involving convertible virtual currencies (May 2019) (checked September 2026)
- Financial Conduct Authority: Cryptoassets: AML / CTF regime (checked September 2026)
- legislation.gov.uk: Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, Part 7A (Cryptoasset Transfers) (checked September 2026)
