AML regulations refer to laws and measures aimed at preventing money laundering and associated financial crimes. In the realm of finance, including cryptocurrencies, these regulations require entities to verify the identities of their clients and monitor transactions for suspicious activity.These regulations help ensure that cryptocurrencies are not used for illicit purposes, such as funding terrorism or evading taxes. Companies involved in cryptocurrency transactions, like exchanges and wallet providers, must implement robust Know Your Customer (KYC) processes. This involves collecting and verifying user information before allowing transactions.Additionally, businesses must monitor transactions for unusual patterns that could indicate money laundering. If suspicious activity is detected, they are required to report it to relevant authorities. Compliance with AML regulations not only protects users but also enhances the credibility of the cryptocurrency market as a whole. It fosters trust among participants and can lead to broader acceptance and integration into the traditional financial system.