Crypto Compliance: Regulated Businesses Must Follow Traditional Frameworks
Crypto businesses are increasingly required to follow traditional financial-crime compliance frameworks. Exchanges and other virtual-asset service providers must identify customers, monitor transactions, and exchange specified information about certain transfers.
The Know Your Customer (KYC) process is used by regulated businesses to establish and verify customer identities. This may involve collecting a legal name, date of birth, address, and government-issued identification. Higher-risk customers or transactions can require additional checks concerning source of funds or beneficial ownership.
The Anti-Money Laundering (AML) framework covers measures designed to identify and mitigate financial-crime risks. Crypto businesses may monitor transactions for unusual activity, screen customers and wallet addresses against sanctions databases, maintain records, and submit suspicious-transaction reports when legally required.