Learn in the textbookFinTech, Digital Currencies, and Identity Verification / Anti-Money-Laundering Measures
DefinitioneKYC is a procedure that completes the identity verification (本人確認) needed for opening an account and similar steps online, without visiting a counter or sending documents by mail.
ExplanationKYC (Know Your Customer) means customer identification, in which financial institutions and others confirm who they are dealing with, and the leading "e" means doing it electronically. The basic approach combines checking a document with checking the person over the internet, and the benefit is that no branch visit or mailing is needed.
AnalogyIt is like showing your driver's license to a staff member through a camera instead of at a shop counter.