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
Cryptocurrency
Digital currencies and assets secured by cryptography and operating on decentralized blockchain networks without central authority.
BitPay
A digital asset payment processor enabling merchants to accept stablecoins like USDC and USDT, with stablecoins comprising nearly 40% of its 2025 payment volume.
Bid-Ask Spread
The difference between the highest bid price and the lowest ask price in an order book, indicating market liquidity.
APY (Lending)
The annualized percentage yield in DeFi lending, accounting for interest compounding.
Active Management Burden
The ongoing requirement for liquidity providers to monitor and adjust positions in DeFi to optimize returns and mitigate risks.
Ask Side
The section of an order book listing all open sell orders, sorted from lowest to highest price.