Why do crypto exchanges ask for your ID?

Identity verification is usually the first step after signing up: you photograph your passport or ID card, often take a selfie, and wait for approval. Only then can you deposit and buy. Some people see it as a nuisance, but it is not the platform's choice. It applies to small accounts as much as large ones.

Which rules require it?

• Anti-money laundering law. The EU's anti-money laundering rules, implemented in each member state's national law, cover crypto-asset service providers. They must identify customers, monitor transactions and report suspicious activity to their national financial intelligence unit.
• MiCA. A firm licensed under the EU's crypto regulation must comply with those rules to keep its authorisation. Our list of MiCA-licensed exchanges shows which supervisor oversees each platform we compare.
• The travel rule. Each crypto transfer must carry details of sender and recipient; see what the travel rule is.

What can an exchange ask for?

When you open an account, typically:

• your name, date of birth, address and nationality;
• a valid identity document, sometimes with a selfie or short video;
• your occupation and how you intend to use the account.

For larger amounts, or when something looks unusual, an exchange may also ask where your money comes from: a payslip, a bank statement or proof of a sale. That can feel intrusive, but it is standard. A sudden account freeze without explanation can also stem from these duties.

What happens to your data?

Exchanges must keep identification records for several years, even after you close your account, so supervisors can check them. Processing is governed by the GDPR. Separately, from 2026 platforms report transaction data to tax authorities under DAC8, which is a different rule with a different purpose.

How to spot a fake request

A real exchange asks for your ID only inside its own app or website. Never send a copy of your passport by messaging app, email or a link in a message, and never to someone offering to help you invest. Identity documents are valuable to fraudsters, who use them to open accounts in your name. If someone has already taken funds from you, read what to do when crypto is stolen.

Can you buy crypto without KYC?

Not from a licensed provider in the EU. All seven platforms in our comparison verify identity, and a platform that skips it is usually one without a licence. The comparer shows which licensed exchange gives you the most crypto for your euros, and how we compare explains how we check licences. Paying by card? See buying crypto with a credit card.