Managing the maze of global regulations like AML (Anti-Money Laundering) and KYC (Know Your Customer) can be tricky for crypto exchanges. As a matter of fact, these are mandatory for regulated entities under Anti-Money Laundering/Counter Financing Terrorism (AML/CFT) rules all around the world.
Do crypto exchanges comply with Crypto AML regulations?
All crypto exchanges operating in the U.S. must comply with crypto AML regulations intended to prevent money laundering, tax evasion, terrorist financing, and other financial crimes.
Why do crypto exchanges need a strong AML program?
Strong AML programs include foolproof KYC processes to identify and verify users. With this, authorities hope to root out suspicious activity in the crypto sector. However, for crypto exchanges and wallets, this also means more expensive onboarding, peppered with friction, and can be vulnerable to data breaches.
