The IRS would define KYC, or Know-Your-Customer, as the applicable laws, regulations, rules, and administrative practices and procedures governing the requirements of financial institutions (e.g., Coinbase) to obtain documentation confirming the
identity of account holders. However, in the
Bitcoin space, KYC is often used more generally and refers to ANY
time an entity asks a user for information which does not necessarily confirm the users identity but requires the information before the user can sign-up and utilize the entities services, such as
name, phone number, email, and payment methods, such as a debit card.
My VPN is KYC at the moment. I used my real name, phone number, email, and payed with my debit card. Next
time, I will use Mullvad VPN, which doesn't require any KYC and accepts
bitcoin as payment so I don't have to use my
bank associated debit card.