1/ What is KYC (Know-Your-Costumer)? 🤝 A thread 🧵

2/ KYC, which stands for "Know Your Customer," is a term used to describe the process businesses use to verify the identity of their clients. It is a critical procedure in many industries, particularly in financial services, banking, and #cryptocurrencies.

3/ The purpose of KYC procedures includes the following👇

4/ 🪪Preventing Identity Theft: KYC procedures help to ensure that the person opening an account or conducting a transaction is who they say they are. This helps to prevent identity theft and fraudulent activity.

5/ 💸Combating Financial Crimes: These procedures are instrumental in preventing money laundering, terrorism financing, and other illegal financial activities.

6/ By verifying the identity of their customers, companies can monitor transaction patterns and report suspicious activities to authorities.