How Does Crypto Compliance Compare to Traditional AML Compliance?
The goals of traditional AML compliance and crypto compliance are all the same: to prevent money laundering, terrorist financing, sanctions evasion, and other financial crimes. Crypto compliance translates the known AML principles to the blockchain and decentralized infrastructure, which generally operate without an intermediary layer like banks. It's AML, but for digital assets, not a new field. What Is Traditional AML Compliance? Traditional AML compliance is built around key components: customer due diligence, know your customer checks, enhanced due diligence, transaction monitoring, suspicious activity reporting, sanctions screening, risk assessments, and record keeping. Over the decades, such controls have been incorporated into onboarding and ongoing monitoring by banks and regulated entities. What Is Crypto Compliance? Crypto compliance brings the concepts of AML and KYC to cryptocurrency exchanges, Virtual Asset Service Providers, digital asset platforms, custodians...