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How Do Know Your Customer (KYC) and Anti-Money Laundering (AML) Regulations Impact CEX Users?

Requires CEXs to collect user data, compromising privacy and creating a risk of asset seizure by authorities.
Greeks.Live29.10.25

How Do Know Your Customer (KYC) and Anti-Money Laundering (AML) Regulations Impact CEX Users?

KYC and AML regulations require centralized exchanges to collect and verify personal identification information from their users. This data collection creates a single point of failure for user privacy and can lead to asset seizure if a user is flagged by authorities.

While necessary for regulatory compliance and preventing illicit activity, it directly contradicts the anonymity and decentralization ethos of cryptocurrency.

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