The Anti-Money Laundering Directive (AMLD) refers to a set of regulations established by the European Union to combat money laundering and terrorist financing. These rules require financial institutions, including cryptocurrency exchanges and providers, to implement measures that prevent illicit activities.Under the AMLD, businesses must conduct customer verification, known as the Know Your Customer (KYC) process. This involves collecting and verifying the identity of users to ensure they are not involved in illegal activities. Businesses must also monitor transactions for suspicious activity and report any concerns to relevant authorities.The directive aims to create a safer financial ecosystem by imposing strict compliance obligations on cryptocurrency entities. This includes maintaining records of transactions and reporting large or unusual transactions.Overall, the AMLD seeks to enhance transparency and accountability within the cryptocurrency sector, helping to build trust and legitimacy while limiting the potential for abuse by criminal organizations.