What is KYC/AML?

Due to the anonymity and irreversibility of transactions, cryptocurrency is considered a convenient tool for committing illegal acts. To combat this, AML provisions against money laundering have been developed, with their help, suspicious activities are tracked. The practice Know Your Customer, or KYC is a particular case of AML. It presupposes collection of personal data from the user and check of their due diligence.

This is how the measures against money laundering work on cryptocurrency platforms:

▶ Identification of suspicious activity (for example, large deposits/withdrawals of funds).

▶ Suspension of the account and conducting an investigation.

▶ Transferring the data to the law-enforcing authorities if the violation is confirmed.

❓ Do you need to pass KYC in crypto exchangers? As a rule, you don’t. Exchangers are not so often subject to attention of regulators as cryptocurrency exchangers with billions of dollars daily turnover. Really large amounts are seldom exchanged through exchangers. That’s why the requirements are much softer. The user has lots of advantages because of it, including higher anonymity and lack of extra actions that take time.

For already 15 years, BestChange has been helping users select the best exchangers in the market. If any service requires identity confirmation, you will see the corresponding mark next to its name.