KYC and AML
Know Your Customer and Anti-Money Laundering — regulatory obligation for crypto exchanges.
KYC (Know Your Customer) and AML (Anti-Money Laundering) are regulatory requirements that crypto exchanges must fulfill to operate legally.
KYC procedure:
•Identity verification via ID or passport
•Selfie or video verification (liveness check)
•Proof of address (utility bill, bank statement)
•Levels: Basic (lower limits) → Intermediate → Advanced (full access)
AML procedure:
•Monitoring suspicious transactions
•Reporting to regulators for transactions above limits
•Blocking funds from known malicious addresses (OFAC list, Chainalysis)
•Tracking fund origins for larger transactions
KYC limits on Binance:
•Without KYC: no deposits or withdrawals
•Basic KYC: $50,000 daily withdrawal limit
•Advanced: unlimited
Privacy:
•DEX (Uniswap, Jupiter) has no KYC — directly from wallet
•Mixers (Tornado Cash) sanctioned by OFAC (don't use)
Keep KYC data secure — crypto exchanges are frequent hacker targets.