AML (Anti-Money Laundering) and KYC (Know Your Customer) procedures are essential practices in the fight against financial crime. AML refers to laws and regulations designed to prevent money laundering activities that can disguise illicit funds as legitimate. In the context of cryptocurrency, this involves monitoring transactions to identify suspicious activities that could suggest money laundering. KYC, on the other hand, focuses on verifying the identities of customers before they can engage in transactions. This process typically includes collecting personal information, such as names, addresses, and identification documents. By ensuring that the individuals behind transactions are known, firms can reduce the risk of fraud and comply with legal requirements.Both AML and KYC procedures serve to enhance transparency in financial operations, helping to build trust in the system. They are crucial for exchanges and platforms operating with cryptocurrencies as they strive to comply with regulations and safeguard against criminal activities. Implementing these procedures can also help institutions protect themselves from potential legal repercussions.