BCHUSDT - LONG [Daily Signal]Anti-Money Laundering (AML) policies on Centralized Exchanges (CEX) are crucial for preventing illegal activities such as money laundering and terrorist financing. These policies require exchanges to implement robust measures to verify users' identities, monitor transactions, and report suspicious activities.
Key components include Know Your Customer (KYC) procedures, where users must provide identification documents before trading. Transaction monitoring systems are used to detect unusual activities, such as large or frequent transactions that deviate from normal behavior.
Exchanges must also comply with international regulations and cooperate with financial authorities to share information about potential illicit activities. Strict AML policies help build trust and ensure the integrity of the financial system while protecting legitimate users from fraud and ensuring compliance with legal standards.
