# 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: 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: ``` GET https://support.backpack.exchange/exchange/exchange-account/identity-verification/why-kyc-is-required.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.