BonsaiGrace
Wed Jul 17 2024
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7 answers
1741
What happens if a crypto exchange doesn't perform KYC?
Inquiring minds want to know: What are the potential consequences when a cryptocurrency exchange fails to conduct Know Your Customer (KYC) procedures? KYC is a critical aspect of any financial institution's due diligence, especially in the realm of cryptocurrencies where anonymity can be a double-edged sword. Without proper KYC, how vulnerable are investors to fraud, money laundering, or other illicit activities? Could this lack of verification lead to regulatory scrutiny or even legal action? Understanding the implications of non-compliance with KYC standards is crucial for both investors and crypto exchanges alike.
