What is KYC crypto? KYC and AML explained

What is KYC crypto? It's the identity check exchanges run before letting you trade, and AML (anti-money laundering) is the broader set of rules those checks support to stop illegal funds from moving through the system. This matters because it decides how much personal data you hand over and whether an exchange freezes withdrawals if something looks off. Coinbase, for example, asks new users for a government ID and a selfie before they can buy Bitcoin, then monitors transactions for patterns like rapid transfers to unhosted wallets. The follow-up most people ask: can you avoid it? Decentralized exchanges like Uniswap don't require KYC, but banks and regulated on-ramps almost always do, and regulators are pushing to close that gap through rules like the EU's MiCA framework.