What it means
Know your customer: the identity check a regulated company must do before it can move money between you and your bank.
It usually means a photo of your ID and a quick selfie, sometimes with proof of address. The law requires it to stop fraud, money laundering and the funding of crime.
How it works
In the EU, the rules come from the anti-money laundering directives, and from MiCA and the travel rule for crypto service providers. Banks, payment providers and crypto exchanges all have to check who their customers are.
A check is done once, then kept up to date. The company may ask again if your details change, or ask where a large payment came from.
Your data should go only to the company doing the check and its identity provider. Be wary of anyone who asks for your ID by email or chat, which is a common scam.
Holding, sending and exchanging stablecoins in Defied needs no check, because your wallet is yours and Defied never holds your money.
Moving money between your bank and your wallet does need one. That one-time check is done by our partner Bridge.xyz under its own terms, before it issues your personal IBAN. See how to get EURC with SEPA.
Related terms
| Term | What it means |
|---|---|
| IBAN | International Bank Account Number: the account number banks in Europe use to send and receive money. |
| On-ramp | Turning money from your bank account into stablecoins. |
| Off-ramp | Turning stablecoins back into money in your bank account. |
| Travel rule | EU rules that make crypto service providers pass sender and recipient details along with transfers between them. |
This glossary explains terms in general. It isn't investment, tax or legal advice.