AML Compliance

When dealing with AML compliance, the set of rules that aim to stop money laundering in financial services, including crypto platforms. Also known as Anti‑Money‑Laundering, it forces businesses to verify who is sending money and where it comes from.

One key piece of the puzzle is sanctions, government‑imposed limits that block transactions with certain countries or entities. AML compliance often means checking every transaction against these sanction lists before it clears. If a user in Iran tries to trade on a decentralized exchange, the platform must either block the trade or risk violating sanctions, which can lead to hefty fines or shut‑downs.

How Crypto Exchanges Meet the Rules

Another major player is crypto exchanges, online venues where users buy, sell, or swap digital assets. These platforms implement Know Your Customer (KYC) checks, which are a core component of AML compliance. By requiring a photo ID and proof of address, exchanges can prove who is behind each wallet. This satisfies the semantic triple: AML compliance requires KYC procedures, and crypto exchanges apply those procedures to stay within the law.

Beyond centralized services, regulatory frameworks, the collection of laws and guidelines that govern financial activities in a jurisdiction shape how AML rules are enforced worldwide. For example, Turkey’s Central Bank has issued strict AML duties for local traders, while China’s outright ban forces any compliance‑aware service to avoid Chinese users altogether. These frameworks influence how AML compliance is designed and executed across the industry.

In practice, AML compliance is a moving target. New tokens pop up, governments adjust sanction lists, and exchanges roll out fresh verification tools. The posts below dive into real‑world cases – from navigating DEX access in Iran to understanding Turkey’s crypto restrictions – showing how the same AML principles apply in very different settings. You’ll see the tools, the risks, and the step‑by‑step actions you can take to stay on the right side of the law while trading crypto.