Crypto exchange or brokerage solutions have robust KYC, KYT, and AML procedures in place to ensure compliance with regulatory requirements and integrity of the platform.
While the KYC process involves verifying customer identities by collecting and verifying information such as name, address, and government-issued identification documents, 5MLD (Fifth Money Laundering Directive) and 6MLD (Sixth Money Laundering Directive) serve to strengthen the AML efforts.
KYT, on the other hand, examines the legality of a transaction and assesses its potential connections to financial crimes, money laundering, or the financing of terrorism.
Additionally, crypto exchange or brokerage solutions have to comply with the MIKA (Markets in Crypto Assets) regulations to ensure comprehensive security and transparency in the digital asset space.