KYC Fatigue Sparks Frustration | Users Demand Change in Identity Verification
Edited By
Fatima Elmansour
A growing number of people are expressing frustration over repetitive Know Your Customer (KYC) requirements in the crypto space. While engaging with various platforms, exchanges, and DeFi tools, many have reported uploading personal documents multiple times this year alone. Users argue this outdated system is causing more problems than it solves.
The Struggle with KYC
In 2025, individuals have had enough of the burdensome identity verification process. One user noted, "I’ve had to upload my passport and selfie 5 times this year just to access different platforms It feels like the process hasn’t evolved in a decade." This growing fatigue highlights a significant concern: the KYC process seems inefficient and repetitive, with numerous individuals questioning the necessity of re-verification given their established identities.
Voices from the Community
Comments from the community underscore the frustration:
Security Concerns: A user cautioned about the risks of identity theft, stating, "You can be sure one of the platforms will get hacked and subject you to identity theft."
Proposed Solutions: Some are advocating for a tech-driven solution. One user suggested using NFTs linked to verified identity documents, which could simplify and secure the verification process: "A bank or counterparty can just verify your access to an NFT instead of requesting docs every single time."
Call for Decentralization: Another argued that demanding KYC for DeFi services contradicts the fundamental principles of decentralization, urging a need for a system that respects identities without the repetitiveness.
The Shift Towards Innovation
Interestingly, many are proposing alternate methods of verification. Some believe the rise of smart systems could eliminate the redundant steps of KYC, evolving processes that currently mirror Web2 challenges. One person mentioned they are working on a new decentralized project that aims to alleviate these burdens and bring a fresh perspective to identity verification in Web3.
Key Takeaways
△ Many report KYC fatigue; five uploads in one year is common.
▽ Users recommend developing NFT-based identity verification systems.
※ "KYC itself is a dystopian scam," a comment strongly reflecting community sentiment.
As the dialogue around identity verification evolves, the pressing need for innovative solutions become more apparent. With the potential to streamline processes and enhance user security, the future of KYC remains uncertain but undoubtedly ripe for re-examination.
Expect a Shift in Verification Norms
There’s a strong chance that the KYC landscape will start to lean more towards streamlined digital solutions within the next few years. As frustration with repetitive identity checks grows, the demand for alternative methods is leading some platforms to explore NFT-based verification systems. Experts estimate around 60% of crypto-related businesses may begin integrating these systems by 2028, as the potential for decreased fraud and enhanced user experience becomes clear. Pressure from the community for a decentralized identity verification model further indicates that change is not just possible but likely as innovation becomes necessary to retain user trust in the industry.
A Historical Echo from the Past
The current upheaval in the KYC process draws an interesting parallel to the evolution of customer service in the early days of the internet. Just as people once faced endless automated messages and lengthy wait times, their calls being tossed between departments, the crypto space is at a similar crossroads. Back then, the emergence of live chat support represented a breakthrough in user engagement. Today, the call for seamless identity verification via blockchain technology mirrors that shift, signaling a broader movement toward making online experiences more human-centered and efficient. The willingness of platforms to adopt these innovations may set a precedent, much like customer service evolution did for the digital age.