Digital or virtual currencies that use cryptography for security and operate on decentralized networks, typically based on blockchain technology, enabling secure and transparent peer-to-peer transactions.
Anti-Money Laundering (AML): Regulatory measures and practices to detect and prevent illicit financial activities, ensuring the integrity of financial systems.
Countering the Financing of Terrorism (CFT): Measures aimed at identifying and preventing the funding of terrorist activities, disrupting financial networks supporting terrorism.
Fifth AML Laundering Directive (AMLD5): An EU directive aimed at enhancing measures to combat money laundering and terrorist financing. It introduces stricter regulations, including the extension of AML obligations to virtual currency exchanges and wallet providers.
A regulatory requirement under Anti-Money Laundering (AML) frameworks that mandates financial institutions and cryptocurrency exchanges to share certain customer information, such as originator and beneficiary details, during cryptocurrency transactions.
The rule aims to enhance transparency and traceability in digital asset transfers to prevent money laundering and terrorist financing.
Platforms that facilitate the buying, selling, and trading of cryptocurrencies. Users can exchange one cryptocurrency for another or for traditional fiat currencies. Exchanges may be centralized, where transactions are managed by a central authority, or decentralized, utilizing blockchain technology for peer-to-peer transactions.
DeFi stands for Decentralized Finance. It refers to a set of financial services and applications built on blockchain technology, aiming to recreate and innovate traditional financial systems in a decentralized manner. DeFi platforms often provide services like lending, borrowing, trading, and yield farming without relying on traditional intermediaries such as banks.