AML/KYC Controls

Definition ∞ AML/KYC controls are regulatory measures designed to combat financial crime and verify client identities. Anti-Money Laundering (AML) policies aim to prevent the legitimization of illicit funds, while Know Your Customer (KYC) procedures require financial entities to confirm the identity of their clients. These protocols are mandatory for many digital asset service providers. They are essential for upholding financial system integrity and adhering to international standards.
Context ∞ Global regulatory bodies consistently refine AML/KYC requirements for digital asset firms. Ongoing debates consider the balance between individual privacy and the necessity of preventing financial malfeasance within decentralized networks. News regarding enforcement actions, updated guidelines, or technological solutions for compliance offers critical understanding of the operational environment for crypto businesses.