AML – Anti-Money Laundering in Crypto

When working with AML, the set of rules and processes that stop criminals from turning illicit money into clean crypto assets. Also known as anti‑money laundering, it forms the backbone of compliance for exchanges, wallets and DeFi platforms. In simple terms, AML means checking who you’re dealing with, keeping records, and reporting anything that looks fishy. Without it, bad actors could move stolen cash through Bitcoin, hide terror financing, or flood markets with untraceable tokens.

One of the biggest forces shaping AML today is OFAC sanctions, U.S. restrictions that target specific countries, individuals and crypto services. When OFAC adds a wallet or exchange to its list, the platform must freeze the assets or block the user, or it risks hefty fines. This creates a direct link: sanctions influence AML policies. Another key piece is crypto exchange compliance, the set of internal controls exchanges use to meet AML standards. Exchanges that follow strong compliance procedures can stay open in regulated markets, while those that ignore rules often get shut down or blacklisted.

Why AML matters for every crypto participant

Regulatory frameworks like the EU’s 5AMLD, the U.S. FinCEN rules, and the upcoming MiCAR standards all require robust AML programs. These frameworks require robust compliance procedures and push platforms to adopt blockchain analytics tools, KYC forms, and transaction monitoring systems. For traders, understanding AML helps you avoid frozen accounts and unexpected delays. For developers, it guides how to design wallets that store encrypted identity data without breaking privacy laws. And for investors, it signals which projects have a lower risk of sudden shutdowns.

Below you’ll find a curated set of articles that dive deep into real‑world AML cases: how OFAC sanctions block Iranian traders, what German regulators demand from exchanges, which Indian platforms have been banned, and the practical steps to keep your crypto activity compliant. Whether you’re a beginner looking for a plain‑English guide or a seasoned professional needing the latest regulatory updates, this collection gives you actionable insight to stay ahead of the curve.