Know Your Customer (KYC) is a compliance requirement to identify and verify account holders to ensure they are not involved in illegal activities, such as money laundering or terrorist financing.

In the context of crypto and decentralized finance (DeFi), KYC is typically carried out by exchanges or other financial service providers to comply with regulatory requirements and to prevent illegal activities.

KYC typically involves collecting and verifying personal information from customers, such as their name, address, and date of birth. This information is then used to verify the customer’s identity and to ensure that they are not on any watch lists or involved in any illegal activities.

Overall, KYC is an important part of the crypto and DeFi ecosystem, as it helps to prevent illegal activities and ensure compliance with regulatory requirements. It is a common practice among exchanges and other financial service providers, and is an essential part of maintaining the integrity and security of the DeFi ecosystem.