KYC (Know your customer)
In short KYC is the identity check regulated crypto services require; for token projects it can also mean the team verified its identity with a third party.
KYC stands for know your customer. It is the process where a business checks who you are, usually with an ID document, a selfie, and sometimes proof of address. Centralized exchanges, fiat on-ramps, and card providers run KYC to meet anti-money-laundering rules in the countries where they operate.
In crypto it has a second meaning. A token team may complete KYC with an auditor or launchpad, which then publishes a badge saying the founders' identities are on file. The public usually does not see who they are; the verifier just claims it knows and could share the data with authorities if a crime is reported.
For buyers, exchange KYC is the price of moving between crypto and bank money, and it ties your on-chain activity to your name once funds pass through that account. Team KYC is meant to make a rug pull riskier for the founders. In practice its value depends heavily on the verifier, the country involved, and whether anyone actually follows up after a scam.
Treat a project's KYC badge as a small plus, not proof of honesty. Check who issued it and whether the badge appears on the verifier's own site. Fake identities and paid stand-ins exist. On the user side, be careful where you upload ID documents: scammers run fake KYC forms to collect passports and selfies, and no real service needs your seed phrase to verify you.