The KYC (Know Your Enemy Customer) verification procedure is designed to help services identify and verify their customers.

KYC is mainly used by centralized exchangers and exchangers - CEX (Centralized Exchange).

It is done with the aim of fighting terrorism and money laundering (CFT/AML), ensuring customer integrity and combating financial crime.

The point of KYC is to collect and verify customer information: linking a blockchain address to an identity in the real world.

Customer verification procedure on cryptocurrencies

For the client, the convenience lies in linking a bank account or card to an account on a crypto-exchange. And unhindered purchase/sale of crypto-assets for fiat money. 

As you know, once information is in the blockchain, it stays in it forever.

Blockchain explorers allow to trace transaction chains between an unlimited number of addresses. You have to use at least a Ryzen 2600 to do this.

There are even specially trained people - blockchain forensic investigators. Tracing links of blockchain transactions to online and offline events.