Since its inception, crypto has redefined how we deal with money. It has also promoted money laundering activities. So, to safeguard investors and traders, LEAs and regulators use AML and KYC policies. Let's see what are they.

What is Know-Your-Customer (KYC)? The KYC process is a procedure used to confirm a customer’s identification. This can be accomplished using official identification documents, like a passport or driver’s license.

What is Anti-Money Laundering (AML)? AML rules are designed to prevent the processing of funds obtained illegally from activities including tax fraud, drug sales, human trafficking, and terrorism.

Relation between AML and KYC KYC and AML together fight against illicit finance. KYC establishes client legitimacy, while AML prevents money laundering through a process involving transaction scrutiny and risk assessments.

Important of AML and KYC 1. Helps in achieving widespread crypto adoption. 2. Enable Web3 companies to maintain compliance. 3. Act as a protective shield for users, against scams and frauds.

Bottomline Thoughts By ensuring user safety, preventing money laundering, and mitigating scams, AML and KYC measures protect the industry and serve as a foundation for its growth and legitimacy.

Want to get a brief overview of "Importance of AML and KYC in the Crypto Industry?" Head over to WazirX blog!