Anti-Money Laundering
Laws and processes that aim to prevent illicit funds from being disguised as legitimate.
Anti-Money Laundering (AML) refers to regulations and practices designed to detect and deter the movement of illicit funds through financial systems. In crypto, exchanges and service providers often implement AML policies such as transaction monitoring, risk scoring, travel rule compliance, and reporting suspicious activity.
- AML/KYC requirements vary by jurisdiction
- Decentralized protocols may not have traditional counterparties, creating regulatory ambiguity
- Privacy must be balanced with compliance obligations and user rights
Related Terms
Know Your Customer (KYC)
→KYC, or Know Your Customer, is a regulatory requirement for businesses to verify the identity of their customers, aimed at preventing illegal activities and ensuring compliance with financial regulations.
Cryptocurrency Exchange
→A platform that facilitates the buying, selling, and trading of cryptocurrencies. Exchanges can support crypto-to-crypto or crypto-to-fiat transactions and serve as crucial infrastructure in the digital asset ecosystem.
Privacy Coins
→Cryptocurrencies that prioritize secure, private, and anonymous transactions through specialized cryptographic techniques.
All terms and definitions may update as the Cryptionary improves.
