Rejected KYC documents: why it happens, what works, and how to appeal.

A client submitted his passport as KYC documentation to Kraken. It was rejected. He submitted his driver's license. Rejected. He submitted his national ID card. Rejected. He submitted a utility bill for proof of address. Rejected. After four rejections, Kraken froze his account and gave him 30 days to provide acceptable documentation. The client was a legitimate user with valid documents — but the automated KYC system kept rejecting them, and no human at Kraken would explain why. The client contacted us in frustration, and we resolved the issue within 5 days. The problem was not the documents — it was the way they were being submitted.

KYC (Know Your Customer) document rejection is one of the most common and frustrating problems for crypto exchange users. When your KYC is rejected, your account may be frozen, and you cannot withdraw your funds until the KYC is approved. The rejection is often not due to the document itself but due to the quality of the submission, the format, or the exchange's automated verification system being overly strict or simply making errors. In this article, I explain why KYC documents get rejected, which documents actually work, how to submit them correctly, and how to appeal a rejection when the system fails.

Based on my experience handling hundreds of KYC rejection cases across all major exchanges, I have identified the patterns that cause rejections and the strategies that resolve them. Whether you are submitting KYC for the first time or appealing a rejection that has lasted months, this guide will help you navigate the process effectively.

Why KYC documents get rejected

KYC document rejection is rarely about the document itself — it is usually about the submission. The automated verification systems that exchanges use (typically provided by companies like Jumio, Onfido, SumSub, or Veriff) use optical character recognition (OCR) to read the document, facial recognition to match the selfie to the document photo, and various checks to verify the document's authenticity. If any of these checks fail, the document is rejected — even if it is perfectly valid. The most common reasons for rejection are:

• Poor image quality: The document is blurry, glare-covered, or partially cut off. The OCR system cannot read the text, so it rejects the document. This is by far the most common reason for rejection — approximately 60% of all rejections are due to image quality issues. The problem is often invisible to the user: the photo looks fine on a phone screen, but when the OCR system tries to read it at full resolution, critical information is obscured by glare or blur.
• Expired document: The document (passport, driver's license, ID card) has expired. Exchanges will not accept expired documents, even if they are recently expired (by one day). The OCR system checks the expiry date automatically, and any expired document is rejected immediately.
• Document not supported: The exchange does not accept the type of document you submitted. For example, some exchanges do not accept driver's licenses from certain countries, or national ID cards that are not machine-readable (do not have a MRZ — machine readable zone). Each exchange publishes a list of accepted documents, but users often do not check this list before submitting.
• Address mismatch: The address on your proof of address document does not match the address you entered during registration. Even a minor discrepancy — "Street" vs "St.", "Apartment 3" vs "Apt 3", or a missing apartment number — can cause rejection. The OCR system compares the address character by character, and any difference triggers a rejection.
• Name mismatch: The name on your document does not exactly match the name on your exchange account. A missing middle name, a different spelling, a name change after marriage, or a transliteration difference (for non-Latin names) can cause rejection. The system is typically case-sensitive and requires an exact match.
• Proof of address too old: Most exchanges require proof of address dated within the last 3-6 months. An older document will be rejected, even if it is otherwise valid. The date on the document (not the date you downloaded it) is what matters.
• Proof of address not accepted: Some documents are not accepted as proof of address by some exchanges. Mobile phone bills, internet bills, and insurance statements are commonly rejected. Bank statements and utility bills (electricity, water, gas) are typically accepted. Each exchange has its own list of accepted proof of address documents.
• Document from a different country: If you registered with a country that does not match your document's country of issue, the exchange may reject the document. This is common for expatriates, dual citizens, and people who have recently moved. The system flags the country mismatch and rejects the document automatically.
• Selfie verification failure: Many exchanges require a selfie with the document or a liveness check (a short video). If the selfie does not clearly show both your face and the document, or if the facial recognition system cannot match your selfie to the document photo, it will be rejected. Lighting conditions, camera angle, and facial expressions can all affect the facial recognition check.
• Automated system error: Sometimes, the automated verification system simply makes a mistake. The document is valid, the image is clear, the address matches, but the system rejects it anyway. This is more common than exchanges will admit, and it is the most frustrating type of rejection because there is no identifiable cause. The only solution is to request a manual review.
• Document damaged or altered: If the document has physical damage (tears, water damage, faded text) or shows signs of alteration (white-out, erased text), the system will reject it as potentially fraudulent. Even legitimate wear and tear can trigger this check.
• MRZ not readable: Passports and many national ID cards have a machine-readable zone (MRZ) at the bottom — a series of characters that encodes the document information. If the MRZ is not clearly visible in the photo, the OCR system cannot read it and rejects the document. This is a common problem when the document is photographed at an angle or when the bottom of the document is cut off.

Which documents actually work

Based on my experience with KYC rejections across all major exchanges, here are the documents that work most reliably. The key principle is to use the most universally accepted document type and to submit it in the highest possible quality.

Identity verification

For identity verification, the hierarchy of reliability is:

• Passport (most reliable): A valid passport is accepted by every major exchange. Passports have a standardized format, a MRZ, and security features that verification systems are designed to read. If you have a passport, use it — it has the highest acceptance rate of any document type. Ensure the photo page is clearly photographed with no glare, and that the MRZ at the bottom is fully visible.
• National ID card (very reliable): Accepted by most exchanges, particularly if it is machine-readable (has a MRZ). EU national ID cards are widely accepted because they follow a standardized format. Non-EU national ID cards may be accepted by some exchanges but rejected by others. If you use a national ID card, ensure it is not expired and that both sides (front and back) are photographed.
• Driver's license (moderately reliable): Accepted by most exchanges, but less reliable than a passport. Some exchanges do not accept driver's licenses from certain countries (particularly non-EU/non-US licenses). If you use a driver's license, photograph both sides, ensure the text is clearly readable, and check that the exchange accepts licenses from your country.

Proof of address

For proof of address, the hierarchy of reliability is:

• Bank statement (most reliable): The most universally accepted proof of address. Must be dated within the last 3 months and show your name and address. Download a PDF from your bank's online banking portal — do not photograph a paper statement. PDFs are clearer and easier for the verification system to read than photos of paper documents.
• Utility bill (very reliable): Electricity, water, gas, or internet bill. Must be dated within the last 3 months. Some exchanges do not accept mobile phone bills. Download a PDF from the utility provider's website if possible.
• Government-issued document (reliable): Tax assessment, social security letter, or other government correspondence showing your name and address. Must be dated within the last 3-6 months. These documents are typically accepted by all exchanges.
• Lease agreement (moderately reliable): Some exchanges accept a lease agreement as proof of address, but it must be notarized or registered with the local government. A private lease agreement without notarization is typically not accepted.

How to submit KYC documents correctly

The quality of your submission is more important than the document itself. Even a valid passport will be rejected if the photo is blurry or has glare. Follow these best practices to maximize the chances of acceptance on the first try:

• Use natural light: Photograph your document in natural daylight, near a window. Avoid fluorescent lights (which cause glare on glossy document surfaces) and flash (which washes out the text and creates reflections). The ideal lighting is indirect daylight on a cloudy day — it provides even illumination without harsh shadows or glare.
• Place the document on a flat, dark surface: A dark, non-reflective surface (e.g., a black table or a dark cloth) provides the best contrast and reduces glare. Do not hold the document in your hand while photographing — your hand introduces shake and uneven lighting.
• Fill the frame: The document should fill the entire frame of the photo, with all four corners visible and a small margin around the edges. Do not crop any part of the document — the verification system needs to see the entire document to validate it.
• Check for glare before submitting: After taking the photo, zoom in and check every part of the document for glare. Pay particular attention to the photo area (which is often glossy) and the MRZ (which is at the bottom and often cut off). If any part of the document is obscured by glare, retake the photo.
• Use a high-resolution camera: A modern smartphone camera (12+ megapixels) is sufficient. Do not use a webcam, a tablet camera, or a low-resolution camera. The verification system needs at least 1MB of image data to read the document reliably.
• Submit PDF when possible: For proof of address, submit a PDF (downloaded from your bank or utility provider) rather than a photograph of a paper document. PDFs are clearer, easier for the verification system to read, and cannot have glare or blur.
• Ensure names match exactly: The name on your exchange account must match the name on your identity document exactly. If your account says "John Smith" but your passport says "John A. Smith," update your account name before submitting. If your name has changed (e.g., after marriage), update your exchange account first and be prepared to provide a marriage certificate or deed poll.
• Take a clear selfie: If a selfie is required, ensure your face is clearly visible, the document is readable in the selfie, and there is no glare on the document. Look directly at the camera, do not wear glasses or a hat, and ensure your face is evenly lit.
• Photograph both sides: For driver's licenses and national ID cards, photograph both the front and back. Many exchanges require both sides — the back often contains additional information that the verification system needs.
• Do not edit the photo: Do not crop, rotate, adjust brightness, or apply filters to the photo. The verification system may detect edits and reject the document as potentially altered. Submit the original, unedited photo.

How to appeal a KYC rejection

If your KYC is rejected, do not simply resubmit the same document — it will be rejected again. The automated system has already flagged it, and resubmitting the same image will trigger the same rejection. Follow these steps:

• Request a specific reason: Contact the exchange's support team and ask for the specific reason for rejection. "Why was my KYC rejected?" is a direct question that the support team should answer. If they say "we cannot provide the reason for security reasons," ask to be escalated to the compliance team, who can provide more detail.
• Fix the identified issue: If the reason is image quality, retake the photo following the best practices above. If the reason is an expired document, obtain a new one. If the reason is an address mismatch, update your account address to match the document exactly.
• Submit a different document type: If the same document is rejected multiple times, try a different document type. If your passport is rejected, try your national ID card or driver's license. Different document types use different verification checks, and a different document may pass where the first one failed.
• Request a manual review: If the automated system keeps rejecting valid documents, request a manual review. Say: "I believe the automated system is incorrectly rejecting my documents. Please escalate to a human reviewer." The exchange is required to provide a manual review option — automated rejection without the possibility of human review may violate consumer protection law.
• Provide additional documentation: If the exchange is questioning your identity or address, provide additional documentation. A second proof of address, a notarized copy of your document, a letter from your employer confirming your address, or a letter from your bank confirming your identity can all help.
• Check for country restrictions: Some exchanges do not accept documents from certain countries. Check the exchange's list of accepted documents and countries before resubmitting. If your country is not supported, you may need to use a different exchange.
• Engage legal counsel: If the exchange refuses to review your documents or freezes your account indefinitely, engage legal counsel. A formal letter from a lawyer can prompt the exchange to conduct a manual review. See our article on suing exchanges.

Case study: the four-rejection problem

The client I described at the beginning of this article had his KYC rejected four times by Kraken. The problem was not the documents — all four were valid. The problem was that the client was photographing the documents on a white surface under fluorescent light, causing glare that obscured critical information (the MRZ on the passport and the address on the utility bill). The automated verification system could not read the obscured information and rejected the documents.

We instructed the client to: (1) place the documents on a dark, non-reflective surface, (2) photograph in natural daylight near a window, (3) check each photo for glare before submitting, and (4) download a PDF bank statement for proof of address rather than photographing a paper bill. The client resubmitted with these corrections, and the KYC was approved within 24 hours — after four rejections spanning three weeks.

The lesson: KYC rejection is usually a submission quality problem, not a document problem. Before resubmitting, review your photos for glare, clarity, and completeness. If the photos look unclear to you, they will be unclear to the verification system. The system is not being unreasonable — it genuinely cannot read the information it needs. Fix the submission quality, and the rejection will resolve.

Special cases: name changes, dual citizenship, and non-Latin names

Certain situations make KYC verification more complex and require additional documentation or explanation:

• Name changes: If your name has changed (e.g., after marriage, divorce, or legal name change), provide a marriage certificate, divorce decree, or deed poll alongside your ID document. The exchange may require additional documentation to verify the name change. Update your exchange account name to match your current legal name before submitting.
• Dual citizenship: If you have citizenship in two countries, use the passport of the country that matches your exchange account registration. If the exchange questions the discrepancy between your passport country and your address country, explain that you are an expatriate or dual citizen and provide both passports if requested.
• Non-Latin names: If your name is in a non-Latin script (e.g., Arabic, Cyrillic, Chinese, Japanese), ensure that your exchange account name is in the Latin transliteration that exactly matches your passport. Different transliterations (e.g., "Mohammed" vs "Muhammad," "Wang" vs "Wong") can cause rejection. Use the transliteration that appears on your passport.
• Residence in a different country: If you live in a different country from your citizenship, use your passport for identity verification and a local utility bill or bank statement for proof of address. If the exchange questions the discrepancy, explain that you are an expatriate and provide a residence permit or visa if requested.
• Recent address changes: If you have recently moved and your proof of address still shows your old address, update your exchange account address to match the document. Do not submit a document with your new address if your account still shows the old address — the mismatch will cause rejection.

The KYC verification providers: who is behind the system

Most exchanges do not build their own KYC verification systems. They use third-party providers — companies that specialize in identity verification. The major providers are:

• Jumio: Used by Binance, Bitstamp, and others. Jumio is known for strict image quality requirements and a high rejection rate for glare.
• Onfido: Used by Kraken, Bitfinex, and others. Onfido is known for its facial recognition checks, which can be sensitive to lighting and camera angle.
• SumSub: Used by Bybit, Changelly, and others. SumSub is known for its liveness checks (short videos) and is generally more lenient on image quality.
• Veriff: Used by smaller exchanges and some larger ones. Veriff is known for its document authenticity checks and can be strict about document damage.

Knowing which provider your exchange uses can help you tailor your submission. If the exchange uses Jumio, pay extra attention to glare. If it uses Onfido, pay extra attention to the selfie. If it uses SumSub, be prepared for a liveness check video.

The bottom line

KYC rejection is usually a submission quality problem, not a document problem. Photograph your documents in natural light on a dark surface, ensure all four corners are visible, check for glare before submitting, and use PDFs for proof of address whenever possible. If your KYC is rejected, request the specific reason, fix the issue, and resubmit. If the automated system keeps rejecting valid documents, request a manual review. If the exchange refuses to review your documents, engage legal counsel.

If your account has been frozen due to KYC rejection and you need help, contact us. We can review your submission, identify the problem, and escalate to the exchange's compliance team if necessary. We have resolved hundreds of KYC rejection cases across all major exchanges and can help you get your account unfrozen.