KYC / AML
Identity verification procedures on centralized exchanges.
KYC (Know Your Customer) = the exchange requires your ID, selfie, sometimes proof of address. AML (Anti-Money Laundering) = monitoring of suspicious transactions. Every regulated CEX (Binance, Kraken, Coinbase) must do this or lose its license. No-KYC can be an asset for users in repressive countries, but usually means higher risk (FTX was 'KYC-light').
In plain words
Every licensed crypto exchange must verify you via ID, selfie, or sometimes proof of address. It is a required by law in the EU, US and most countries. DEXes (Uniswap) don't require KYC, so you trade directly from your wallet, but technical risk is higher.
Example
Binance: KYC takes 5-10 minutes; without it max withdrawal is 0.06 BTC/day.
Also known as: kyc, aml