Results for “KYC vs AML”

KYC

KYC (know your customer) is the process a financial company uses to identify and verify who its customers are, usually with a government ID and personal details. In the US it is part of the customer due diligence rules that also ask firms to understand what an account is for and monitor it.

What it means for you. Buying crypto for dollars at a regulated company usually means handing over ID first, and the account can be held or frozen until the checks finish. Your trades there are linked to your identity, which matters for tax records. A site that asks for ID and a deposit through an unsolicited link is a common scam shape, so reach the company directly.

Sources: FinCEN: CDD Final Rule, Federal Reserve: 31 CFR 1020.220, Customer identification program requirements for banks, FINRA: Crypto Assets · checked 4 October 2026

AML

AML (anti-money laundering) is the set of laws and checks meant to stop criminal money being passed through the financial system. In the US it rests on the Bank Secrecy Act, which requires financial institutions to keep records, identify customers and report suspicious activity to the government.

What it means for you. AML checks are why an exchange may ask where your money came from, delay a large withdrawal, or freeze an account linked to stolen funds. Coins that passed through an address tied to a hack or scam can be refused at a deposit. Keeping records of where your crypto came from makes these reviews shorter.

Sources: FinCEN: History of anti-money laundering laws, FinCEN: CDD Final Rule, FINRA: Crypto Assets · checked 4 October 2026