KYC (know-your-customer)

KYC

The customer-identification programme regulated financial institutions run before opening accounts or processing transactions.

Centralised stablecoin issuers KYC primary-market participants (mint / redeem); secondary-market holders typically are not KYC'd directly, but their on-ramps are. The stablecoin itself remains permissionless on-chain — KYC pressure shows up at gateways, not the token.

Related terms

AML (anti-money-laundering)A body of law and procedure obliging financial institutions to detect and report suspicious activity.
Travel RuleA FATF rule requiring VASPs to share originator + beneficiary information for transfers over a threshold (~$1,000).
FATF (Financial Action Task Force)The intergovernmental body that sets global AML / CFT standards — its recommendations are adopted into national law.