External Compliance Audit refers to an assessment conducted by an independent third party to evaluate a cryptocurrency organization’s adherence to laws, regulations, and industry standards. This process helps ensure that the organization operates transparently and maintains the integrity of its operations.During the audit, the external auditor reviews the organization’s financial records, transaction logs, and security measures. The focus is on compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, which are crucial for preventing illicit activities.The findings from the audit can help identify areas for improvement and highlight any compliance gaps. They also provide assurance to investors, customers, and regulators that the organization is taking necessary steps to meet legal requirements and uphold ethical practices. Ultimately, an external compliance audit plays a vital role in fostering trust within the market, enhancing the credibility of firms, and ensuring a secure environment for participants.