# Verification (KYC)

# What is KYC?

KYC, an acronym for "Know Your Customer," has evolved into a critical process within the financial industry, assuming heightened significance in the digital era where the specter of fraud, money laundering, and other illicit activities looms large. At its core, KYC serves as a robust mechanism through which businesses ensure compliance with anti-money laundering (AML) laws and regulations, meticulously scrutinizing and verifying the identities of their customers.

In the dynamic realm of centralized exchanges (CEX), KYC transcends being a mere procedural formality; it emerges as a mandatory and pivotal step that users must navigate to partake in trading activities on the platform. Users find themselves obliged to furnish a spectrum of personal details, including their name, address, and compelling proof of identity such as a passport or government-issued ID. These elements collectively contribute to a comprehensive verification process, a crucial linchpin in upholding the integrity of the exchange.

The information procured during KYC undergoes a rigorous examination, as it is cross-referenced against global sanctions lists. This meticulous vetting process serves an overarching goal – to ensure that the user is not entangled in any illegal activities, thereby safeguarding the exchange and its user base from potential threats.

The primary impetus behind KYC implementation in CEX environments is two-fold. Foremost is its role as a robust deterrent against nefarious activities such as money laundering and fraud. By establishing a stringent verification protocol, CEX platforms fortify themselves against potential threats, creating a secure environment for users to engage in financial transactions. Equally critical is the function of KYC in empowering exchanges to actively monitor user transactions. Through constant surveillance, any aberrations or suspicious patterns can be promptly identified, contributing significantly to the prevention of illicit activities within the platform.

In conclusion, KYC for CEX transcends its role as a regulatory checkbox; it emerges as a proactive and integral aspect of the financial industry. Its paramount objectives include not only preventing illegal activities but also ensuring the safety of users' funds. As the world witnesses an escalating adoption of digital assets, the significance of KYC for CEX is poised to grow exponentially, solidifying its position as a cornerstone in fostering a secure, compliant, and resilient financial ecosystem for users and stakeholders alike. The evolution of KYC reflects a continual commitment to adapt and fortify against the evolving landscape of financial threats and challenges.

# How to do KYC?

At Balance Network, we prioritize the security of your transactions and aim to create a trustworthy environment for all our customers. Completing the KYC process is a crucial step in this commitment. KYC helps us ensure the integrity of our services, prevent fraud, and comply with regulatory requirements. Here's a step-by-step guide to assist you in completing the KYC process:

Step 1: Registration: Start by registering for an account on our platform if you haven't already. Provide accurate and up-to-date information during the registration process.

Step 2: Access KYC Section: Once registered, log in to your account and navigate to the KYC section. This located in the account settings.

Step 3: Personal Information: Fill in your personal details as accurately as possible. This includes your full name, date of birth, and contact information. Ensure the information matches the details on your official identification documents.

Step 4: Document Upload: Upload clear and legible copies of your identification documents. Accepted documents are typically include a government-issued photo ID (passport, driver's license, or national ID).

Step 5: Verification Process: Our team will review the documents submitted. This process may take a short amount of time. You will be notified once the verification is complete. In some cases, additional information may be requested.

Step 6: Risk Assessment: Based on the information provided, we will assess the risk associated with your account. This step is crucial for tailoring our services to your needs and complying with regulatory standards.

Step 7: Ongoing Monitoring: Rest assured that your information is subject to continuous monitoring as part of our commitment to maintaining a secure environment. We may request updates periodically to ensure the accuracy of your details.


Thank you for your cooperation in completing the KYC process. Your commitment to providing accurate information helps us maintain a secure and trusted platform for all our users. If you have any questions or encounter any issues during the KYC process, our support team is here to assist you.

At Balance Network, we value your trust and look forward to serving you in a secure and compliant manner.

# Do This - Don't Do This
1) Good Lighting: A well-lit environment aids in identifying the characters within the image. If the image is excessively dark or bright, it becomes challenging to validate the document.
2) Avoid Reflections: Avoid using the flashlight feature on your device and steer clear of any reflections caused by lamps or surrounding lights. These reflections can disrupt the processing and extraction of data from the image.
3) Focus and Sharpness: Ensure the image is sharp and free from any areas of blurriness.
4) Angle: Ensure that the document is not tilted more than 10 degrees in either the horizontal or vertical direction.
5) Margins (Too Close): Ensure there is minimal space surrounding the document and avoid zooming the image. It's advisable for the document to occupy 70-80% of the image.
6) Margins (Too Far): Ensure that the area surrounding the document does not exceed 20-30% of the image. It is advisable for the document itself to occupy 70-80% of the image.
7) Contrast: The document needs to have distinct contrast compared to the background. Documents that are light on a light background or dark on a dark background will not be recognizable.
8) Resolution: For optimal recognition quality of identification documents, it's advisable to submit images taken with a camera that has a minimum resolution of Full HD (1920×1080) and autofocus capability.
9) Subjection: Ensure that document data is not obstructed by hands or other objects.

How to do KYC in Balance Network Exchange Video (opens new window)

How to do KYC in Balance Network Exchange App Video (opens new window)

Last Updated: 11/24/2023, 3:12:30 PM