What Is the Purpose of Anti-Money Laundering (AML) Regulations in Crypto?
AML regulations are designed to prevent the use of financial systems, including cryptocurrency platforms, for illegal activities like money laundering and terrorist financing. They require exchanges and other financial intermediaries to implement Know Your Customer (KYC) procedures, monitor transactions for suspicious activity, and report to authorities.
This is essential for mainstream adoption and regulatory acceptance.
Glossar
AML
Framework ⎊ Anti-Money Laundering (AML) protocols within cryptocurrency, options trading, and financial derivatives represent a layered compliance architecture designed to detect and prevent illicit financial flows.
Money Laundering
Process ⎊ Money Laundering is the illicit process of concealing the origins of illegally obtained funds by integrating them into the legitimate financial system, a risk amplified by the borderless nature of cryptocurrency.