Regulators around the world are working to create global standards for the KYC (abbreviation for know your customer). These standards apply to the financial, technological sectors, and cryptocurrencies. The technology sector, that began with anonymous peer-to-peer payments is now aiming towards the security of traditional finance, which means compliance with the KYC. It is a security standard that helps to verify and confirm the identity of the client. Its essence is that users of the service, upon registration or after it, must provide documents proving their identity (usually a passport, driver's license, photo or selfie).
Between 2000 and 2010 in most jurisdictions, such as the United States and Canada, most of the European countries, Russia, South Africa, India, Singapore, South Korea, China and Japan (these are just some countries) adopted the legislation on KYC and AML procedures (anti-money laundering). As a result, banks and related financial institutions started to comply with the requirements of anti-money laundering legislation.
In the crypto community, the KYC procedure was onboarding with skepticism, as users were afraid to disclose their data, which could fall into the hands of scammers. Moreover, according to many crypto users, the KYC procedure contradicted the very idea of anonymity when using cryptocurrencies. However, with the growth of popularity, the development of infrastructure, and the adoption of the cryptocurrency payments in many countries around the world, the opinion of most users has changed.