AML compliance: What you need to know

When working with AML compliance, the set of policies and procedures that prevent money laundering and illegal financing in crypto projects. Also known as Anti‑Money‑Laundering compliance, it shapes how exchanges, wallets, and DeFi platforms verify users and monitor transactions. Mastering AML compliance can protect your business from fines, reputation damage, and shutdowns.

Key components of AML compliance

Effective AML compliance starts with Know Your Customer (KYC), the process of collecting and verifying identity information from users before allowing them to trade or withdraw funds. KYC is the first line of defense, and it directly satisfies the Travel Rule, a regulation that requires crypto service providers to share sender and receiver details for transactions above a set threshold. Together they form a chain: AML compliance requires robust KYC, and the Travel Rule influences how that data is shared across platforms.

Beyond user onboarding, global standards set by the Financial Action Task Force (FATF), an intergovernmental body that issues recommendations for anti‑money‑laundering and counter‑terrorist financing guide regulators in drafting local laws. FATF’s guidance shapes the implementation of the Travel Rule and dictates the level of sanctions screening, transaction monitoring, and reporting that crypto businesses must adopt. In practice, this means a DeFi protocol will need automated tools to flag suspicious activity and generate suspicious activity reports (SARs) when required.

Compliance is not a one‑time checklist; it evolves with new token types, cross‑chain bridges, and emerging stablecoins. For instance, stablecoins that peg to fiat currencies introduce additional scrutiny because they can be used to move large values quickly. Cross‑chain bridges that link Bitcoin, Ethereum, and Solana must also meet AML standards, ensuring that assets moving across chains carry the same verification data. Understanding how each of these pieces interacts helps you stay ahead of regulators and avoid costly retrofits.

Below you’ll find a curated selection of articles that dive deeper into stablecoins, cross‑chain bridges, exchange regulations, and real‑world smart‑contract use cases—all framed through the lens of AML compliance. These resources give you actionable steps to build a compliant crypto project and keep pace with the fast‑moving regulatory landscape.