Is the cryptocurrency industry compliant with KYC and AML?

However, because the cryptocurrency industry is only loosely regulated by differing global standards, only two compliance measures have truly proliferated. Say hello to KYC (Know Your Customer) and AML (Anti-money Laundering).

How does AML work on crypto exchanges?

To identify funds obtained through criminal means, the AML policy is being implemented on crypto exchanges. It includes a wider set of measures than KYC: In short, crypto exchanges are doing everything to ensure that not even a single cent that has been stolen or used in criminal activities reaches our wallets. What is the Travel Rule?

How can cryptocurrencies prevent money laundering?

To stay ahead of this, regulatory bodies are installing staunch anti-money laundering (AML) legislation. This helps to prevent money laundering through cryptocurrency exchanges and custodian services. Strong AML programs include foolproof KYC processes to identify and verify users.

Do crypto exchanges need KYC?

Now, as crypto exchanges and wallets become more like financial institutions, KYC needs to be added into the cryptocurrency AML programs for these entities. The process involves collecting a customer’s Personal Identifiable Information (PII): full name, date of birth, and address.