How KYC and AML Work at Crypto Exchanges
An overview of exchange KYC/AML processes, what information exchanges hold, and how investigators can effectively work with compliance teams.
Centralized cryptocurrency exchanges are the critical nexus between fiat and digital assets. Their Know Your Customer (KYC) and Anti-Money Laundering (AML) programs are the primary defense against illicit finance.
Tiered KYC Systems
Most exchanges use a tiered approach. Basic tiers (email only) may allow crypto-to-crypto trading with low withdrawal limits, while advanced tiers (ID verification, liveness checks, proof of address) are required for fiat off-ramps.
What Information Do Exchanges Hold?
- •Government-issued identification and selfies
- •IP addresses, device fingerprints, and login logs
- •Fiat bank account details linked for funding
- •Complete internal trading and withdrawal histories
Working with Compliance Teams
When legally authorized, investigators should approach exchange compliance teams with specific transaction hashes, timestamps (in UTC), and clear legal basis to ensure rapid response.
Accelerate Your Investigations
Aletheia structures blockchain data alongside OSINT findings, making it easier to compile the precise intelligence needed for effective exchange subpoenas.