If you have ever been asked to upload an ID or confirm your address in a financial app, you have experienced KYC. Those checks can feel like friction, but they are a key part of how modern financial services protect users and follow the rules. This post explains what KYC is, why it matters for apps like Fold, and what it means for your everyday bitcoin rewards experience.
What KYC actually is
KYC stands for “know your customer,” a set of processes that financial institutions use to verify who a customer is and understand their risk profile. In practice, this usually means collecting and validating identity details like your legal name, date of birth, government ID, and sometimes proof of address.
KYC is closely connected to anti money laundering, or AML, rules that aim to stop financial crime. By ensuring that each account belongs to a known individual, KYC helps institutions detect unusual activity, flag potentially suspicious transactions, and cooperate with regulators when required.
Why KYC exists and who requires it
Around the world, laws like the Bank Secrecy Act in the United States and similar regulations in other regions require financial services firms to perform KYC checks. These rules apply broadly to banks, fintechs, payment companies, and many platforms that let customers move, store, or exchange value.
The goals are straightforward: reduce fraud, prevent money laundering, and make it harder for criminals to abuse the financial system. When companies follow KYC and AML standards, they help protect users, support a safer financial ecosystem, and lower the risk of regulatory penalties that could disrupt services.
How a typical KYC flow works
Although each provider designs its own screens, most digital KYC flows follow a similar pattern.
- Capture basic details such as name, date of birth, and address, often during signup or when unlocking certain features.
- Collect identity documents like a government ID or driver license and sometimes a selfie for liveness checks.
- Compare your details against trusted data sources and perform checks such as sanctions or watchlist screening as required by regulation.
- Classify risk and, if needed, apply extra checks for higher risk situations, often referred to as enhanced due diligence.
Once KYC is complete, providers continue monitoring accounts for unusual activity, using the verified profile as a baseline. Over time, you may be asked to refresh information if documents expire or regulations change, which is a normal part of ongoing due diligence.
What KYC means for Fold users
Fold is a bitcoin powered personal finance app and debit card that lets users earn bitcoin rewards on everyday purchases. Because it operates in regulated financial categories, Fold is required to perform KYC for many account actions, particularly those tied to card use and certain money movements.
Completing KYC helps Fold confirm that an account really belongs to you before enabling sensitive features. That supports fraud prevention, strengthens account security, and allows Fold to keep delivering rewards within the rules that apply to financial services.
How KYC supports a better experience
While KYC can feel like one more thing to do, it can support a smoother and safer experience once it is complete. For example, verified identity details can make it easier to resolve issues, respond to suspicious activity alerts, or work with support if something on your account needs review.
KYC also helps providers streamline risk checks and automate parts of compliance, which can reduce manual review delays. Over time, strong KYC and AML controls can help platforms maintain access to payment networks and partners, which supports the long term availability of features and rewards that users rely on.
Getting ready for KYC with Fold
If you see a prompt to complete or refresh KYC in your Fold app, having a valid government ID and up to date address information ready can make the process faster. Following the in app guidance and submitting clear photos or scans helps reduce the chance of additional document requests.
If a document changes, such as a new address on your ID, updating your details promptly keeps your account profile accurate. This ongoing accuracy is part of how KYC continues to protect both you and the broader Fold community as regulations evolve.
KYC isn’t something we added for fun; it is a legal requirement for us to keep offering you the best ways to earn bitcoin on your everyday purchases. Taking a few minutes to complete KYC in Fold can support a smoother experience when you use your card and earn bitcoin rewards on your everyday spending.
Ready to review your details and get set for the yearOpen the Fold app to complete or confirm your KYC information.
* Rewards are subject to the terms and conditions in effect at the time and may change. See Fold’s Terms and Conditions for current details: https://Foldapp.com/legal/terms-and-conditions.
Disclaimer: Fold does not provide financial, investment, or tax advice. This content is provided for informational and educational purposes only and does not constitute a recommendation, solicitation, or guidance regarding any financial decision or strategy.