Do crypto exchanges need a KYC verification process?

For some crypto exchanges, higher-value accounts require an additional document verification process, also known as Know Your Customer (KYC) procedures. As more users sign up and more money enters the crypto space, regulators will further define the specific KYC rules that exchanges and other crypto entities must follow. For instance, some regulators are examining extending travel rule requirements to crypto wallets.

Should I use a centralized cryptocurrency exchange?

Before you go with either option, consider how important avoiding identity verification is to you. The KYC process can be inconvenient and slow, but you only need to go through it once with a centralized exchange. If you're willing to verify your identity, you can choose any of the best cryptocurrency exchanges.

Can a cryptocurrency exchange be hacked?

There have been reports of hackers getting access to the KYC information of cryptocurrency users by taking advantage of loopholes on the software of exchanges. Binance is one of the few exchanges with a secure and dedicated system for KYC data collection and management.