What is Crypto Compliance?
Cryptocurrency compliance basically is the process of following the Anti Money Laundering (AML) cryptocurrency standards and regulations.
Anti Money Laundering (AML) is a catchall term for all legal precedents and procedures for preventing the misuse of crypto assets. One of the key elements of AML is user verification.
User verification is achieved through Know Your Customer (KYC), Know Your Business(KYB), and Know Your Transaction (KYT).
Identity Verification Loops
Know Your Customer (KYC)
KYC or Know your Customer refers to identity verification procedure that helps to identify and verify individual or customer identity. The purpose is to ensure that a potential or existing customer is who they claim to be. In order to achieve this verification, businesses collect some kind of personally identifiable information (PII) on their customers. This could be something as simple as a name and phone number or a full-length background check depending on the organisation.
Know Your Business (KYB)
KYB or Know Your Business is similar to KYC, in that the goal is to collect information and review the business inother to verify the legal status of a business.
Know Your Transaction (KYT)
Know Your Transaction or KYT is the process of collecting information on transactions made by a business to ensure that they are legal and not connected in any way to financial crimes.
Note
Taking action in these three key areas can help you achieve crypto compliance.
Companies that offer crypto compliance services assist people and organizations stay on top of their compliance needs (e.g. KYC, KYB, and KYT). Additionally, the majority of these solutions incorporate provider risk score and blockchain analytics tools. This enables real-time verification of transactions involving wallets that have been involved in fraud, scams, hacks, or the dark web. Though the transparency of all transactions is a benefit (or a drawback) of cryptocurrencies. Consequently, unlike transactions conducted in traditional finance, it is simple to track them.
Below are the 22 crypto compliance providers sourced from Loic Staub.
BlockPass
Chainalysis
Ciphertrace
Codefi
Coinmetrics
BlockSeer
Coinfirm
Comply Advantage
Crystal blockchain
Elementus
Elliptic
FinClusive
Merkle Science
Nansen
Notabene
Ospree
Qlue
ScoreChain
Solidus Labs
Sumsub
TRM Labs
