1. What Is Money Laundering? Money laundering is the process by which criminals transform illegally obtained funds (such as those from financial fraud, drug trafficking, terrorism, etc.) into clean,1. What Is Money Laundering? Money laundering is the process by which criminals transform illegally obtained funds (such as those from financial fraud, drug trafficking, terrorism, etc.) into clean,
Learn/Cryptocurrency Knowledge/Security Knowledge/What is Ant...Laundering?

What is Anti-Money Laundering?

Jul 16, 2025MEXC
0m
#Basic#Beginners#Basic Concepts
Ethereum Classic
ETC$13.4--%
Gravity
G$0.004904-1.26%
Notcoin
NOT$0.0005937-3.55%
RealLink
REAL$0.07892-1.58%
Moonveil
MORE$0.004704-6.53%

1. What Is Money Laundering?


Money laundering is the process by which criminals transform illegally obtained funds (such as those from financial fraud, drug trafficking, terrorism, etc.) into clean, legitimate money. The process of money laundering generally involves three stages:

1.1 Placement: This stage involves placing illicit funds into the financial system (e.g., banks). Perpetrators try to make their actions appear legitimate by repaying debts, mixing the illegal funds with legitimate income, investing, exchanging foreign currency, and other related schemes.

1.2 Layering: In this stage, the criminals transfer the illegal funds through various means multiple times to make it difficult to trace. Using cryptocurrencies for transfers is one of the methods used for this purpose.

1.3 Integration: At this final stage, the "cleaned" money is taken out and deposited into the financial system for legitimate use.

2. What is Anti-Money Laundrying (AML)?


Anti-Money Laundering (AML) refers to the activities and measures implemented by institutions, platforms, and governments to prevent and combat financial crimes, particularly those involving money laundering and terrorist activities. In simple terms, it aims to prevent criminals from transforming illegally obtained funds into clean, legitimate money. AML efforts are present in various fields and not exclusive to the cryptocurrency field.

For cryptocurrency trading platforms, the following measures are typically taken when facing potential money laundering activities:

2.1 Identifying and reporting suspicious transactional activities, such as frequent trading from individual accounts, significant increases in transaction volumes, or large inflows and outflows of funds.

2.2 Freezing user accounts during investigations, preventing access to funds.

2.3 Submitting evidence to and cooperating with relevant authorities if illegal activities are confirmed. Efforts are made to return stolen funds to their rightful owners whenever possible.

MEXC, as a cryptocurrency exchange platform, maintains a strong stance against illegal activities, demonstrating a firm commitment to anti-money laundering and adhering to the implementation of relevant policies in different countries and regions.


KYC stands for Know Your Customer, which means fully understanding your customers. In simple terms, it refers to the process of identity verification, commonly known as real-name authentication.

KYC is one of the measures used in anti-money laundering efforts. Through the KYC system, businesses can obtain information about customers' identities, transaction behavior, credit status, and more, thereby preventing money laundering activities.

4. The Importance of Anti-Money Laundering (AML) in the Cryptocurrency Field


Cryptocurrencies have become a channel for illegal activities such as money laundering for the following reasons:

4.1 The characteristic of anonymity in cryptocurrencies increases the difficulty of AML efforts. Privacy coins like Monero (XMR) enable transactions with enhanced privacy, and mixing services represented by Tornado Cash (TORN) make it challenging to trace transactions, confounding regulators by making money laundering more convenient for illicit actors.

4.2 Cryptocurrency transactions are irreversible. Once funds are sent, they cannot be retrieved unless the recipient voluntarily agrees to a refund.

4.3 Lack of regulation in the cryptocurrency field creates opportunities for illicit actors to exploit the system.

Implementing AML measures in the cryptocurrency field helps protect the rights of legitimate cryptocurrency users and promotes the overall development of the industry. For platforms like MEXC, adhering to and enforcing AML policies is not only a contribution to the industry's advancement but also helps gain the trust of potential users and regulatory authorities, leading to better opportunities for future development.

Popular Articles

Is Bitcoin Going to Crash? Expert Analysis of the $600 Billion Market Wipeout

Is Bitcoin Going to Crash? Expert Analysis of the $600 Billion Market Wipeout

Bitcoin has dropped below $90,000, marking a seven-month low and erasing nearly 30% of its value since October's peak of $126,000.The cryptocurrency market has wiped out over $600 billion in value, le

MSTR mNAV Drops Below 1, How to Buy MSTR in the Crypto Market

MSTR mNAV Drops Below 1, How to Buy MSTR in the Crypto Market

Key TakeawaysRare Discount Signal (mNAV < 1) MSTR's Market Value to Net Asset Value (mNAV) dropping below 1 is a historically rare event. It signals that the company's market valuation is currently lo

How Much Bitcoin Does Satoshi Have? Here's The Answer

How Much Bitcoin Does Satoshi Have? Here's The Answer

Satoshi Nakamoto, Bitcoin's mysterious creator, holds approximately 1 million BTC. At Bitcoin's current market price, this fortune is worth over $100 billion, representing roughly 4.8% of Bitcoin's to

Why is Bitcoin Going Up? Key Factors Behind Bitcoin's Price Up

Why is Bitcoin Going Up? Key Factors Behind Bitcoin's Price Up

If you've been watching the cryptocurrency markets lately, you've probably wondered why is Bitcoin going up to such remarkable levels. Bitcoin recently smashed through $120,000 and continues climbing

Hot Crypto Updates

Zcash Wallet: Your Complete Guide to Storing ZEC Safely

Zcash Wallet: Your Complete Guide to Storing ZEC Safely

A Zcash wallet is a digital tool that lets you store, send, and receive ZEC coins securely.Think of it as your personal bank account for Zcash, where you hold the keys to your privacy-focused cryptocu

Zcash Price Prediction: What to Expect from This Privacy Coin

Zcash Price Prediction: What to Expect from This Privacy Coin

Privacy coins are making waves in the crypto market, and Zcash (ZEC) is leading the charge. This digital asset has caught investors' attention with impressive price movements and growing adoption.If y

Zcash News: Privacy Cryptocurrency Gains Momentum in Crypto Market

Zcash News: Privacy Cryptocurrency Gains Momentum in Crypto Market

Privacy-focused cryptocurrencies are capturing renewed attention, and Zcash is leading the charge.The digital asset has experienced significant market activity, driven by institutional interest and gr

Beeg Blue Whale Future Outlook: In-Depth Analysis of Investment Opportunities and Challenges in Sui Ecosystem Meme Coins

Beeg Blue Whale Future Outlook: In-Depth Analysis of Investment Opportunities and Challenges in Sui Ecosystem Meme Coins

Key TakeawaysSui blockchain as next-generation high-performance Layer-1 public chain provides ideal technical environment for BEEG and other meme coinsSui ecosystem TVL continues growing with meme coi

Trending News

Will $0.30 Be Next Target for DOGE?

Will $0.30 Be Next Target for DOGE?

The post Will $0.30 Be Next Target for DOGE? appeared on BitcoinEthereumNews.com. Dogecoin price has risen by 4% in the last 24 hours, showing signs of recovery. The meme coin is currently holding abo

Gold continues to hit new highs. How to invest in gold in the crypto market?

Gold continues to hit new highs. How to invest in gold in the crypto market?

As Bitcoin encounters a "value winter", real-world gold is recasting the iron curtain of value on the blockchain.

Fed Lowers Rates By 25bps: How Bitcoin And Crypto Prices Responded And What’s Next

Fed Lowers Rates By 25bps: How Bitcoin And Crypto Prices Responded And What’s Next

The Federal Reserve (Fed) announced its first interest rate cut of the year, leading to an immediate reaction in the cryptocurrency market. Bitcoin (BTC) experienced a notable decline, dropping below

Why Ethereum (ETH) is Not the Top Pick for Whale Investors, Here’s The New Best Crypto to Invest in December 2025

Why Ethereum (ETH) is Not the Top Pick for Whale Investors, Here’s The New Best Crypto to Invest in December 2025

As market conditions tighten, whale investors are becoming more discriminative, and Ethereum (ETH), although more dominant, has started to fall out of favor in large capital investments in December 20

Related Articles

KYC Uncovered: The Key to Crypto Trading and Finance

KYC Uncovered: The Key to Crypto Trading and Finance

1. AbstractKYC (Know Your Customer) is a globally recognized compliance procedure in the financial industry, designed to verify customer identities, understand their financial behavior, and prevent il

A Must-Read Before Trading Futures: Key Terms Explained

A Must-Read Before Trading Futures: Key Terms Explained

For many investors, futures trading is a field full of opportunities but also significant challenges. Compared to spot trading, it involves more specialized terminology and complex mechanisms. When yo

Quick Guide to Futures Information Terminology and Trade Futures with Confidence

Quick Guide to Futures Information Terminology and Trade Futures with Confidence

When you open the MEXC Futures trading interface, what greets you isn't just the dynamic candlestick chart, but also rows of constantly changing data and professional terms: Index Price, Fair Price, F

What is Copy Trading?

What is Copy Trading?

Copy trading is an investment strategy in cryptocurrency trading that allows investors to automatically replicate the trading actions of other experienced traders. It is a very user-friendly investmen

Sign Up on MEXC
Sign Up & Receive Up to 10,000 USDT Bonus