AML/CFT
Anti-Money Laundering and Countering the Financing of Terrorism regulations for financial integrity.
What is AML/CFT?
AML/CFT requires entities to verify identities, report suspicious activities, and comply with FATF standards, with digital assets facing heightened scrutiny via rules like the Travel Rule. In 2025, U.S. proposals mandate record-keeping for crypto transactions over $3,000.
For digital assets, they prohibit mixers and enforce KYC, as in EU’s MiCA framework. Treasury promotes tech for detection, with settlements like Binance’s $4.3 billion fine.
Related Terms
Wrapped Tokens
Wrapped tokens are digital assets on one blockchain that represent a 1:1 pegged equivalent of an asset from another blockchain or the same chain, enabling cross-chain compatibility or enhanced functionality.
Arbitrum One Chain
An optimistic rollup Layer 2 for Ethereum, leading in DeFi TVL with advanced governance features.
Circle
The company behind USDC, focused on building transparent and compliant digital asset solutions.
Consensus Algorithm
A consensus algorithm is a mechanism used by a blockchain network to achieve agreement among nodes on the validity and order of transactions in a decentralized system.
Ethereum Scaling
Ethereum scaling encompasses layer 1 protocol upgrades and layer 2 solutions that enhance the blockchain's transaction throughput.
EIP (Ethereum Improvement Proposal)
A standardized process for proposing and implementing changes to the Ethereum protocol.