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How Does a CEX’s Know Your Customer (KYC) Policy Aid in Preventing Manipulation?

It attaches accountability to trading activity, deterring repeat offenders and allowing exchanges/regulators to identify and penalize manipulators.
Greeks.Live24.11.25

How Does a CEX’s Know Your Customer (KYC) Policy Aid in Preventing Manipulation?

KYC policies require traders to verify their identity, which significantly aids in preventing manipulation by attaching accountability to trading activity. If a trader is found to be engaging in illegal manipulation, the exchange can identify and ban the individual, and regulatory bodies can pursue legal action.

The inability to trade anonymously deters repeat offenders and makes large-scale manipulation harder to coordinate.

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