KYC is short for Know Your Customer. Many crypto exchanges require KYC verification to prevent money laundering and other illegal activities, mandated by local legislation. This is one of the Anti-Money Laundering (AML) protocols.

Fulfilling KYC requirements often involves collecting personal information about customers by asking them to provide personal identification documents (e.g. Passports), pictures of themselves or proof of address.

The KYC information collected is used by regulators to identify and verify users to stop any suspicious activity occurring on the exchange.

All widely known cryptocurrency exchanges collect users' personal information as required by law. This gives law enforcement your trading history and where the money was transferred.

Therefore, the need for non-KYC exchanges has increased recently. These exchanges allow individuals to transact without the need to present their identity information, allowing individuals to securely trade cryptocurrencies without any oversight and protecting their personal information.