Due diligence requirements in cryptocurrency refer to the processes and measures that individuals and organizations must undertake to assess risks associated with crypto transactions and investments. This includes verifying the identity of users, understanding the source of funds, and ensuring compliance with legal regulations.For investors, due diligence involves researching a project’s whitepaper, team, technology, and market potential. It helps in identifying potential scams or high-risk ventures before committing funds.For exchanges and other financial service providers, robust due diligence is essential for anti-money laundering (AML) and combating the financing of terrorism (CFT). This may involve conducting background checks on users, monitoring transactions for suspicious activity, and maintaining records in accordance with regulatory guidelines.Overall, these requirements aim to promote transparency, accountability, and trust in a rapidly evolving and sometimes opaque environment. Proper due diligence helps protect investors and maintain the integrity of the financial system.