AML for Crypto Exchanges: Rules, Risks, and Real-World Cases
When you hear AML for crypto exchanges, Anti-Money Laundering rules designed to stop criminals from using digital currencies to hide illegal funds. Also known as crypto KYC and AML compliance, it's the backbone of any exchange that wants to stay open and avoid fines or shutdowns. This isn’t theory—it’s daily reality. From Nigeria to Brazil, exchanges are forced to verify users, track transactions, and report suspicious activity. If they don’t, regulators step in fast.
Take Brazil, a country that now requires all crypto exchanges to be licensed by its Central Bank and enforce strict AML checks. Also known as BCB crypto rules, this system blocks anonymous trading and forces platforms to collect ID, proof of address, and transaction history. Without it, exchanges like Swyftx wouldn’t be trusted by over a million users. Meanwhile, in Russia, where most citizens can’t legally trade crypto due to sanctions and state controls. Also known as crypto sanctions Russia, the few who do trade rely on offshore platforms that ignore AML rules—making them targets for global blacklists. Venezuela does something similar, using USDT and Bitcoin to bypass sanctions, but without proper AML, those flows become tools for smuggling, not survival.
AML isn’t just about stopping criminals. It’s about protecting you. When Cryptopia or BitGlobal collapsed, it wasn’t just because of bad tech—it was because they skipped AML. No identity checks, no transaction monitoring, no reporting. That’s how exit scams happen. And now, regulators are watching. If you’re using an exchange that doesn’t ask for ID, it’s not a feature—it’s a red flag.
What you’ll find below are real cases where AML worked, where it failed, and how governments are changing the rules. You’ll see how India’s 1% TDS on crypto trades ties into AML, how New Brunswick’s mining ban affects financial flows, and why memecoins like SUMMIT or POGAI don’t get listed on compliant exchanges. This isn’t about compliance paperwork. It’s about knowing which platforms are safe, which are risky, and why the system works the way it does.