Global AML Standards

Global anti-money laundering (AML) standards for crypto are guidelines set by international bodies like the Financial Action Task Force (FATF) to prevent the use of digital assets for illicit activities. These standards require exchanges and service providers to implement robust customer due diligence, transaction monitoring, and suspicious activity reporting.

The "Travel Rule" is a prominent example, requiring the exchange of sender and receiver information for large transactions. Compliance with these standards is mandatory for firms operating in major financial hubs.

While these measures increase the operational burden, they are necessary for institutional adoption and integration with the traditional financial system. They represent the bridge between the permissionless nature of crypto and the regulatory requirements of the global economy.