A Customer Identification Program (CIP) is a set of regulatory requirements that businesses, including those dealing in cryptocurrencies, must follow to verify the identities of their customers. This is primarily aimed at preventing fraud, money laundering, and other illicit activities.When a user opens an account or engages in a transaction, the business collects personal information such as name, address, date of birth, and identification numbers. This information is used to confirm the customer’s identity through various methods, including government-issued ID checks and third-party verification.CIPs also involve monitoring transactions for suspicious activity. If any red flags are raised, these programs may require businesses to take further action, such as filing reports with regulatory authorities.Implementing a robust CIP helps build trust and enhances the security of the platform, ensuring compliance with legal standards. As the cryptocurrency landscape evolves, staying up to date with CIP requirements is essential for maintaining operational integrity and protecting customers.