From BlockFi to Mt. Gox, the three largest crypto exchange hacks that every trader needs to know
As part of a commitment to fight terrorist financing, money laundering and other illicit activity, financial services companies must check that a customer is who they claim to be. These checks — also known as Know Your Customer verifications — involve a customer proving their identity using a government-issued document.
The regulations that impose KYC verification checks are often referred to as AML (i.e., anti-money laundering) and CTF (i.e., combating terrorist financing) measures. The Financial Action Task Force sets global standards. National and supranational agencies, such as Europe's EBA, the U.S.'s OCC, Russia's FSFM and Singapore's MAS, develop and enforce regulatory frameworks at a more local level.