KYC/AML (Know Your Customer / Anti-Money-Laundering) is a set of requirements from financial regulators aimed at ensuring that exchange services, exchanges, and other services conduct lawful activity. Compliance with these rules confirms that a platform operates transparently and cooperates with supervisory authorities.
In practice, KYC means identifying the user: the customer is asked to confirm their identity with a passport or other documents, and sometimes additional data about the source of funds is requested. AML complements this with procedures for monitoring suspicious operations in order to prevent money laundering and the financing of illegal activity.
Why a user needs this
- Access to the features of regulated exchanges and services.
- A reduced risk of having funds frozen due to non-transparent operations.
- Protection of the platform and its customers from fraudulent schemes.
Although verification procedures take time and require disclosing personal data, they have become a standard for most large venues that seek to operate within the legal framework.
