After completing Steps 1 through 17 and gaining sufficient readiness to participate safely and consciously in the cryptocurrency market, it is now time to take action. At this stage, by registering on an exchange, you can begin your financial activity in practice and become an active participant in financial markets.

Exchange registration, identity verification, KYC, and AML
Just as buying stocks in traditional markets requires identity verification and registration with a broker, purchasing cryptocurrencies also requires registering and completing identity verification on a cryptocurrency exchange website.

This process is usually done by filling out a form on the exchange’s website, including information such as first name, last name, passport number or other acceptable identification documents, and email address. In later stages, you may be asked to record and submit a short live video using your mobile phone’s selfie camera. You may even be required to read a text shown on the exchange’s website or app.

Do not be surprised—this is neither an acting test nor a singing test. The exchange simply wants to make sure that:

  • You are not a software bot.
  • Your face matches the identification document you submitted.

You may have heard in the news that some individuals misuse other people’s national ID cards to buy cheaper foreign currency and resell it on the open market. Similar abuses have also occurred with business licenses. Cryptocurrency exchanges must implement strict identity verification procedures to prevent such fraud on an international level.

An even more important reason for these measures is compliance with Anti-Money Laundering regulations (AML). Exchanges want to ensure that the person submitting the identification:

    • Is alive.
  • Is personally creating the account.
  • Is not a national of a sanctioned country.

Unfortunately, at the time of writing this step, Iranian nationals do not have access to major global exchanges such as Binance. Even if an Iranian holds permanent or temporary residency in another country, most major exchanges still do not provide services due to nationality restrictions. Only dual citizens holding passports from non-sanctioned countries can currently access these platforms.

These exchanges are operated centrally by registered companies that are legally responsible for managing customer assets. This is why they are called Centralized Exchanges (CEX).

At the time of writing, some well-known centralized exchanges include:

  • Binance
  • Coinbase
  • Kraken
  • KuCoin
  • Gemini
  • Bitstamp
  • Bitfinex
  • OKX
  • Binance.US
  • LBank

The website CoinMarketCap ranks exchanges based on traffic, liquidity, trading volume, and confidence in reported volume. For an updated list, visit:

https://coinmarketcap.com/rankings/exchanges

Some exchanges, such as KuCoin, still allow trading without identity verification, but daily deposit and withdrawal limits apply. To increase these limits, KYC is required. Regulatory authorities worldwide mandate financial service providers to “Know Your Customer” (KYC), and large or institutional clients must also undergo AML procedures.

Buying cryptocurrency without KYC
If you are concerned about privacy, you can purchase non-KYC Bitcoin directly from individuals through platforms such as Bisq. Decentralized exchanges can also help by enabling token swaps.

Signing agreements with exchanges and service providers
Like every website or application you have ever used, registering on an exchange means entering into a legal agreement. Clicking “Accept” or “I Agree” legally counts as signing a contract in most jurisdictions.

These agreements usually define:

  • How your personal data is stored.
  • How your data is used.
  • The exchange’s responsibilities toward you.
  • Your responsibilities as a user.
  • Confirmation that you are not a citizen of a sanctioned country.

Although most users accept these agreements without reading them, understanding the risks, limitations, and legal implications is entirely the user’s responsibility.

Important factors when choosing an exchange

  • Research where the exchange’s operating company is legally registered.
  • Verify which countries the exchange is allowed to operate in.
  • Ensure the exchange allows withdrawals to personal wallets.
  • Carefully read the Terms of Use to confirm eligibility based on your nationality.
  • Follow reliable news sources regarding exchange-related developments.
  • Check customer reviews and support responsiveness (24/7 support is ideal).
  • Determine which country’s courts have jurisdiction in case of disputes.

If allowed by the exchange’s terms, securely record the names of exchanges you registered on, login methods, and two-factor authentication tools, so trusted individuals can access or withdraw assets on your behalf if necessary. In such cases, using a non-personal email address for exchange registrations is recommended.

Worth Noting

Centralized exchanges are often the main entry point for newcomers, but they also represent custodial risk. Regulatory pressure is increasing globally, and compliance requirements are becoming stricter. Understanding jurisdictional risk, custody models, and withdrawal rights is essential before depositing funds.

How AI Helps

AI tools assist users in evaluating exchange risk, regulatory exposure, and reputation by analyzing large datasets such as user reviews, on-chain flows, and compliance history. AI-powered identity verification systems are used by exchanges for KYC and AML checks. Advanced users rely on AI-driven platforms for exchange monitoring, fraud detection, and real-time alerting on exchange solvency and abnormal activity.

FAQ

Why is KYC required on cryptocurrency exchanges?

KYC is required to comply with international regulations, prevent fraud, and combat money laundering.

What is a centralized exchange (CEX)?

A centralized exchange is a platform managed by a company that holds custody of user assets.

Can I trade without KYC?

Some platforms allow limited trading without KYC, but with lower withdrawal limits and higher risk.

Why are some nationalities restricted?

Due to international sanctions and regulatory compliance requirements.

Is it safe to keep funds on an exchange?

Keeping funds on exchanges carries custodial risk; long-term storage in personal wallets is safer.

What should I check before choosing an exchange?

Legal jurisdiction, withdrawal policies, compliance rules, security history, and customer support quality.