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It is part of a broader set of measures that regulators around the world use tofight money laundering.In other words, it stops bad actors from hiding the illicit source of their money behind legitimate financial activity.KYC is one of the biggest regulatory hurdles that crypto firms have had to clear in recent years.

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Many decentralized services are designed to allow customers to remain anonymous and keep their personal information private from any central authority.

use ai to improve product sales by enhancing customer loyalty programs ✌️【365vc.net】✌️Save, invest, and grow! ₹500 to begin, with potential for 100% monthly profits.This means many crypto firms are not able to identify who their customers actually are; something regulators do not find acceptable.Even the most reluctant crypto firms have been compelled to introduce steadily more stringent KYC measures, as they face growing pressure and penalization from regulators.Despite these efforts, federal prosecutorsstill chose to chargeBitMEX with a variety of regulatory violations in late 2020, including lacking effective KYC safeguards.

use ai to improve product sales by enhancing customer loyalty programs ✌️【365vc.net】✌️Invest smartly in blockchain technology. Start small, earn big—₹500 to 100% returns monthly.The following year, the company said all its users had been verified, before announcing a$100 millionsettlement with regulators.KYC requirements do not apply todecentralized exchanges(DEXs), meaning those that organize trades through smart contracts instead of acentral trading deskare not required to disclose their identities.

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In a bid to shrug off KYC requirements, ShapeShift pivoted business models andrelaunched as a DEXin 2021.Some crypto exchanges avoid KYC requirements by domiciling in softer regulatory environments.

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In 2020, the FBI claimed one defendant in the BitMEX case admitted it only cost “a coconut” to bribe Seychelles authorities.Media attention and U.use ai to improve product sales by enhancing customer loyalty programs Blockchain Investments: Earn Up to 100% Monthly Returns