KYC/AML

7 min readarticleIncludes quiz · 3 questions

KYC stands for Know Your Customer, and it is why every exchange asks for your driver's license. It exists because governments want to track money flows to prevent crime and collect taxes. Some Bitcoiners see this as necessary regulation. Others see it as surveillance.

Exchanges and custodians often must verify users and monitor transactions to reduce crime and comply with laws.

Simple definitions:

  • •KYC (Know Your Customer): Collecting identity info.
  • •AML (Anti‑Money Laundering): Policies to detect and stop illicit activity.
  • •Sanctions screening: Blocking listed entities.
  • •Travel Rule: Sharing sender/receiver info between certain providers.
Key Takeaway

KYC is the law on regulated exchanges. If you want to avoid it, peer-to-peer platforms like Bisq operate without KYC — but you accept less liquidity and more complexity in exchange for privacy.

Test Your Knowledge

3 questions · Passing score: 75%

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