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What Is KYC and Why Is It Critical for Financial Institutions Using Blockchain?

KYC verifies client identity to ensure compliance with AML/CTF regulations, which is a prerequisite for membership on a permissioned financial chain.
Greeks.Live06.11.25

What Is KYC and Why Is It Critical for Financial Institutions Using Blockchain?

KYC (Know Your Customer) is a process of verifying the identity of clients to assess their suitability and the potential risks of illegal intentions. It is critical for financial institutions using blockchain because it ensures compliance with Anti-Money Laundering (AML) and counter-terrorism financing regulations.

On a permissioned consortium chain, KYC is a prerequisite for membership, allowing the institutions to maintain regulatory compliance while utilizing the technology for sensitive financial operations.

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