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HelpVerificationWhy KYC is required

Why KYC is required

What verification covers and who completes it

Written by Fiatswaps

Last updated July 28, 2026

Every recipient completes KYC, or KYB if the recipient is a business, before Fiatswaps issues their virtual bank account. It is not optional and there is no way to skip it.

1. What KYC makes possible

A virtual bank account is issued in the name of whoever completed the verification. Platforms pay out to an account in the payee's own name, so that name has to be verified before the account can be issued. Matching the two is the point of the step: see Whose name to use.

2. What KYC covers

KYC covers the fiat leg. Once a payment arrives and is swapped, the USDC goes to the USDC wallet you nominated for the recipient and Fiatswaps does not hold it. The verification applies to receiving the fiat payment, not to what the recipient does with the USDC afterwards.

3. Who completes it

Who does the work depends on the recipient type:

  • Individual recipient: the person completes KYC themselves through the verification link you share. It includes a liveness check, so nobody can complete it on their behalf. You can fill in the intake details for them, but they have to pass the liveness step in person.
  • Business recipient: you submit KYB from the company's documents. There is no link for the business to complete itself.

Note: The recipient does not need a Fiatswaps account. An individual recipient completes KYC through the link without signing up for anything.

4. What verification asks for

Both routes ask the recipient to prove who they are and where their money comes from:

  • Proof of address, a document showing the recipient's full name and address.
  • Source of funds, their occupation, the purpose of the payments, and bank statements in their own name.
  • An identity document, plus the liveness check for an individual recipient.

If a recipient cannot verify in their own name, or the money will not arrive from an account in that name, Fiatswaps cannot issue them an account.

Next: Work out which person or company you are actually onboarding. Whose name to use →

Frequently asked questions

Can I complete KYC on my recipient's behalf?

No. KYC includes a liveness check that the recipient has to pass in person. You can fill in the intake details for them, but they have to finish the verification themselves through the link you share.

Does the recipient need a Fiatswaps account?

No. An individual recipient completes KYC through the verification link you send them, without signing up. A business recipient's KYB is submitted by you from the company's documents.

Does KYC apply to the USDC as well?

No. Verification covers the fiat payment arriving in the virtual bank account. Once the swap is done, the USDC goes to the wallet nominated for the recipient and Fiatswaps does not hold it.

Is KYB different from KYC?

Yes. KYC is the identity check for an individual recipient and includes a liveness step. KYB is the company check for a business recipient and is submitted from the company's registration and address documents.

Can KYC be skipped for small amounts?

No. Verification is what allows the virtual bank account to be issued at all, so it happens before any payment can be received, whatever the amount.

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More articles in Verification

  • Whose name to use
  • Source of funds and the verification questionnaire
  • Proof of address
  • What KYB asks for

On this page

  • 1. What KYC makes possible
  • 2. What KYC covers
  • 3. Who completes it
  • 4. What verification asks for