Do crypto exchanges need AML?

Exchanges that strictly deal with crypto do not. However, in the USA, FinCEN classes all cryptocurrency the same way. This means that all cryptocurrency exchanges must carry out KYC and install effective AML programs, regardless of the currencies they support. What Does AML Legislation Mean for Crypto Exchanges?

What are AML rules?

AML rules impose requirements on crypto firms to prevent criminals from using them to launder their illicit funds. The Bank Secrecy Act is the primary legal framework governing AML regulations in the U.S. It requires financial institutions, including crypto exchanges, to assist government agencies to identify and stop money laundering.

What is AML & how does it affect cryptocurrencies?

As virtual currencies increase in use, AML legislation has started to update its standards to include cryptocurrency entities, such as exchanges and wallets. In the EU, AMLD5 covers the processes that institutions should follow to help prevent cryptocurrency money laundering.