AML regulations: navigating crypto compliance

When working with AML regulations, rules that require businesses to prevent money laundering and terrorist financing. Also known as Anti‑Money‑Laundering rules, they set the legal baseline for every crypto platform that deals with real‑world value.

One of the first tools an exchange must adopt is KYC, Know‑Your‑Customer procedures that verify a user’s identity before allowing transactions. KYC is a direct implementation of AML regulations because it creates a traceable link between an on‑chain address and a real person. The process usually includes document upload, facial verification, and risk scoring. By collecting this data, firms can monitor suspicious patterns, flag large transfers, and report to authorities, which satisfies the “customer due diligence” attribute of AML.

Another powerful driver is OFAC sanctions, U.S. Treasury measures that block transactions with designated individuals, entities, or countries. OFAC lists act as a blacklist that crypto exchanges must integrate into their AML engines. When a user’s wallet matches a sanctioned address, the platform must freeze the funds and submit a Suspicious Activity Report. This creates a semantic link: OFAC sanctions influence AML compliance, and together they shape the risk profile of an exchange.

Beyond KYC and sanctions, global regulators like the EU’s 5AMLD, Singapore’s MAS, and the UAE’s ADGM are drafting crypto‑specific AML frameworks. These bodies demand transaction monitoring, record‑keeping for at least five years, and appointing a dedicated compliance officer. In practice, a well‑rounded AML program blends identity checks, sanctions screening, automated analytics, and regular audits. Below you’ll find detailed articles—from exchange reviews that score AML readiness to airdrop alerts that warn about potential compliance pitfalls. Dive into the collection to see how real‑world projects apply these rules, what mistakes to avoid, and where the industry is heading next.