Days, millions of users enter into cryptocurrency exchange platforms and trade cryptocurrencies. Do you think it? Why how much peoples invest the cryptocurrencies? The primary truth is cryptocurrency exchange security. Crypto exchange platforms provide unbreakable protection to users. Now, coming to topics…, Why KYC & AML is important in the crypto exchange? These features are protected the users' funds and platform safety.
In this article, we’ll discuss Why KYC & AML is needed in the crypto exchange and these features how to protect the platform. So don’t miss out on the information.
Starting stage, these features doesn’t in the cryptocurrency exchange platform. A lot of users do fraudulent activities on the platform like multiple accounts to trade and forgery the buy & sell orders. For example, the South Korean government banned anonymous users from cryptocurrency trading. So crypto exchange platform introduced KYC/AML opportunities in the platform and control unwanted trading.
KYC
Everyone knows the KYC.KYC stands for Know your customer. The KYC's main purpose is platform owner to identify about the user information of services. KYC ensures that no anonymous trader in the platform. Every crypto exchange business is a mandatory feature in the platform. Mandatory users verify the documentation before that invest the platform. The platform provides online verification and offline opts verification for one time There are two types of verification in the KYC Aadhar and personal verification.
AML
AML stands for Anti-money laundering, this policy is used for unwanted transactions that do not happen platform and blocking the transactions. Overall 90% of crypto exchange platforms did implement the rules in software and AML controls the unwanted money sharing. Anti-money laundering policies easily identify unwanted transactions compared to the manual process.
So exchange platforms these features to understand the customer and control unwanted transactions.
Hope, I believed that you know the KYC and AML importance in the cryptocurrency exchange platforms. Now every cryptocurrency exchange platform gives the most important factors.
Do you want to develop cryptocurrency exchange software? We will be integrated these features with developed the cryptocurrency exchange development. So collaborate with us and launched your own cryptocurrency exchange script.