Know Your Customer (KYC) refers to the process of a financial institution verifying the identity of its clients. KYC is designed to prevent banks and other financial institutions from being used, intentionally or unintentionally, by criminal elements for money laundering activities. KYC encompasses various processes and principles, such as customer identification, due diligence, and ongoing monitoring of customer transactions. The importance of KYC has grown in the wake of the increasing amount of regulations imposed on financial institutions, especially since the rise of cryptocurrency and digital assets, which are often associated with higher risks.