Regulations imposed by governments and regulatory agencies on financial institutions and services providers that require them to identify and verify their customer's identities. The purpose of requiring KYC information primarily revolves around complying with anti-money-laundering programs that have been required by banks and other traditional finance companies and institutions for years
Example
“For example, when opening an account on Coinbase, you must complete KYC by submitting a government-issued ID and proof of address before you can deposit funds and start trading.”