a set of about 30 random characters that specifies the whereabout of a wallet on the blockchain. It is used to send and receive coins.
Anti-money laundering (AML) is a broad term for laws and regulations put in place to prevent criminals from making money illegally or moving illicit funds. While many illegal activities are targeted by AML laws, some of the most important are tax evasion, public corruption, and market manipulation through methods such as wash trading.
Many governmental institutions and pieces of legislation play roles in establishing AML requirements.
Owing to the complexity of the relevant laws, many financial institutions use AML software to detect questionable activity. These software solutions perform functions that range from checking customer names against government lists of prohibited users to generating records that are necessary for maintaining compliance.
AML is tightly linked to Know Your Customer (KYC) requirements, which essentially involve verifying customers’ identities and the sources of their income. KYC also requires financial institutions to monitor their users’ activity on an ongoing basis. Like AML, modern KYC procedures are heavily automated, and many institutions use the client onboarding process as an opportunity to acquire proper identification from new customers.
Many cryptocurrency exchanges have made concerted efforts toward compliance with anti-money laundering laws as regulators started to place more focus on the cryptocurrency market. Still, there is some criticism toward KYC and AML requirements within the crypto space, as critics argue that compliance decreases their privacy and nullifies the benefits of decentralization by placing sensitive personal data in centralized databases. Proponents, however, argue that solutions can be devised that will meet regulatory requirements while still ensuring user privacy.
a procedure performed by businesses that deals with the accurate identification of their customers, allows to review their financial activities and analyze their risk factors.
a general name of cryptocurrencies that have a quite stable price in consequence of being linked to a physical currency used a lot all over the world (that is to the USD) or to the price of gold.
an exclusively used sequence of numbers and letters that defines each transaction on a blockchain.
a place where you store all your crypto keys. It can be a program, service, physical medium or a device that also has a function of encrypting and signing information.