In the rapidly evolving world of digital finance, ensuring security, transparency, and regulatory compliance is more important than ever. When purchasing cryptocurrency, users must navigate a landscape governed by strict Know-Your-Customer (KYC) and Anti-Money Laundering (AML) policies. These frameworks are not just legal requirements — they are essential safeguards that protect both platforms and users from financial crime.
This comprehensive guide outlines the core principles, procedures, and expectations surrounding KYC and AML protocols in crypto transactions. Whether you're a new user or an experienced participant, understanding these policies helps ensure smooth, secure, and compliant access to digital asset services.
Why KYC and AML Matter in Crypto
Cryptocurrencies offer unparalleled freedom and accessibility, but their decentralized nature also presents risks for misuse — including money laundering, terrorist financing, and fraud. To counter these threats, global regulators have mandated that all legitimate crypto service providers implement robust KYC and AML systems.
These policies enable platforms to:
- Verify the true identity of users
- Monitor transactions for suspicious activity
- Prevent illicit funds from entering the financial system
- Comply with international standards set by organizations like the Financial Action Task Force (FATF)
By adhering to these practices, platforms maintain operational integrity, build user trust, and support the long-term sustainability of the crypto ecosystem.
Core Components of Our KYC and AML Framework
Our compliance strategy is built on a foundation of global regulatory standards, advanced technology, and continuous monitoring. Below are the key elements of our KYC and AML policies:
1. Policy Development and Updates
We regularly publish and update our KYC and AML policies to align with evolving legal requirements across jurisdictions. These updates ensure that our platform remains compliant with local laws as well as international best practices.
2. Operational Guidelines
Internal guidelines govern every aspect of user interaction, from account registration to transaction processing. Our trained staff follows these rules meticulously to deliver consistent, secure, and compliant service at every stage.
3. Identity Verification Procedures
A rigorous identity authentication process forms the backbone of our security model. This includes multi-step verification using government-issued documents and biometric confirmation.
4. Risk-Based Customer Due Diligence
We apply a risk-based approach to customer onboarding and monitoring. This means higher scrutiny is applied to users or entities deemed to pose elevated risk — such as those from non-cooperative jurisdictions or with complex ownership structures.
5. Transaction Monitoring and Review
All transactions are subject to real-time monitoring. We conduct regular reviews of existing activities to detect anomalies or patterns indicative of suspicious behavior.
6. Reporting Suspicious Activities
When a transaction raises red flags, we are obligated — and empowered — to report it to the relevant authorities immediately. This helps law enforcement agencies act swiftly while preserving the integrity of the financial system.
7. Data Retention Practices
We securely retain copies of identity documents, proof of address, and transaction records for a minimum of six years, in accordance with regulatory mandates. If submitted to authorities, no separate notification will be sent to users.
8. Prohibited Payment Methods
To reduce fraud and chargeback risks, credit card payments are strictly prohibited on our platform. Only verified funding sources such as bank transfers or debit cards are accepted.
9. Jurisdictional Restrictions
Users residing in countries listed as high-risk or non-cooperative by the FATF are not permitted to register or use our services. This restriction applies regardless of citizenship or intended use.
10. Staff Training and Awareness
Our compliance team participates in regular training sessions organized by regulatory bodies. Additionally, internal programs ensure all employees stay up-to-date on emerging threats and procedural updates.
Identity Verification: What Information Do We Collect?
To fulfill our KYC obligations, we collect specific information depending on whether you're an individual or an organization.
For Individual Users
When registering as an individual, you'll be required to provide:
- Full legal name
- Residential address (and permanent address if different)
- Date of birth
- Nationality
- Government-issued ID (e.g., passport, national ID card)
Address validation may involve reviewing utility bills, bank statements, or official correspondence showing your name and address.
👉 See how next-gen identity verification speeds up onboarding while enhancing security.
Additionally, you must submit:
- A clear photo of yourself holding your ID in front of your chest
- A valid email address and phone number
We reserve the right to request additional documentation if needed to meet regulatory requirements.
For Corporate Entities
For businesses, trusts, or other legal entities, we require:
- Certificate of incorporation or registration
- Articles of association and memorandum
- Ownership structure documentation detailing shareholders and beneficiaries
- Board resolution authorizing account creation and naming an authorized signatory
- Valid IDs for directors, major shareholders, and authorized representatives
- Business address and mailing address (if different)
If the registered address differs significantly from the operational base, the entity may be classified as high-risk and subject to enhanced due diligence.
Note: All documents must be in English or Chinese. Non-English/Chinese documents must be officially translated and notarized before submission.
How We Confirm and Verify Your Identity
Verification is a critical step in preventing identity theft and fraudulent activity. Our process includes:
- Requiring both front and back images of your ID
- Validating selfies holding the ID against the document photo
- Cross-checking copies with originals unless certified by an approved authority (e.g., judge, magistrate, ambassador)
- Identifying ultimate beneficial owners (UBOs), especially for corporate accounts
For companies, we verify individuals who own or control 10% or more of voting equity — this threshold marks high-risk ownership. Those holding 25% or more are considered average-risk but still subject to full verification.
Real-Time Transaction Supervision
Security doesn't end at onboarding — continuous monitoring protects against evolving threats.
Daily Limits and Controls
We dynamically adjust daily trading and withdrawal limits based on risk profiles and transaction history. These thresholds help prevent large-scale illicit movements while allowing legitimate users full functionality.
Detection of Suspicious Activity
Transactions that are unusually frequent, inconsistent with user behavior, or structurally complex may trigger alerts. Our compliance team evaluates each case using behavioral analytics and risk scoring models.
If a transaction is flagged:
- It may be suspended or denied
- In some cases, it can be reversed
- The incident is reported to authorities
- Users are typically not notified during active investigations
We also reserve the right to reject applications from individuals who fail to meet international AML standards — including politically exposed persons (PEPs) — without providing further explanation.
Frequently Asked Questions (FAQ)
Q: Why do I need to upload a photo holding my ID?
A: This biometric check ensures that the person submitting the document is its legitimate owner, reducing the risk of identity fraud.
Q: Can I use a credit card to buy crypto?
A: No. Credit card purchases are prohibited due to high fraud and chargeback risks associated with leveraged funding.
Q: What happens if my country is on the FATF blacklist?
A: Unfortunately, users from non-cooperative or high-risk jurisdictions cannot register or access services on our platform.
Q: How long is my data stored?
A: All identity and transaction records are securely retained for at least six years to comply with global AML regulations.
Q: Will I be notified if my transaction is reported?
A: Generally, no. Reporting is done directly to authorities without user notification to preserve investigation integrity.
Q: What defines a "high-risk" customer?
A: Factors include jurisdiction, ownership structure (e.g., >10% shareholder), lack of physical presence, or politically exposed status.
By implementing thorough KYC, AML, and transaction monitoring procedures, we create a safer environment for everyone engaging with digital assets. These measures aren't barriers — they're foundations for trust, innovation, and sustainable growth in the crypto economy.
👉 Learn how leading platforms balance compliance with seamless user access in 2025.