AML (Anti-Money Laundering) monitoring in cryptocurrency refers to the practice of tracking and analyzing transactions on a digital currency network to identify and prevent illicit activities. It involves the continuous surveillance of financial transactions to detect suspicious patterns that may indicate money laundering, terrorist financing, or other illegal activities.
Cryptocurrency exchanges and other service providers are required to implement AML monitoring processes to comply with regulations and prevent their platforms from being used for criminal purposes. This includes conducting identity verification, monitoring transactions for signs of suspicious activity, and reporting any suspicious transactions to the relevant authorities.
AML monitoring typically involves the use of software tools that analyze blockchain transactions in real-time, flagging any transactions that meet predefined criteria for further investigation. It is an essential part of the regulatory framework for cryptocurrency businesses, helping to ensure compliance with anti-money laundering laws and protect the integrity of the financial system.
