> 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.


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