> For the complete documentation index, see [llms.txt](https://support.backpack.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://support.backpack.exchange/exchange/exchange-account/identity-verification/why-kyc-is-required.md). # Why KYC is Required? KYC (Know Your Customer) is a standard process required by global financial regulations. It serves several important purposes: * **Compliance With Regulations**\ KYC ensures that the exchange complies with international Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements. This helps prevent illegal activities such as money laundering, terrorist financing, and fraud. * **User Identity Verification**\ By verifying the identity of each user, the exchange can confirm that accounts are genuine and are not created with stolen or falsified information. * **Account and Asset Security**\ Verified accounts significantly reduce the risk of unauthorized access, identity theft, and fraudulent transactions. This helps protect both users and the platform. * **Improved Service Access**\ Completing KYC often provides users with higher transaction and withdrawal limits, as well as access to more advanced features and services. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://support.backpack.exchange/exchange/exchange-account/identity-verification/why-kyc-is-required.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.