The Compliance Dilemma of Privacy Coins

Assets like Monero and Zcash, designed to enhance transaction privacy, present a significant challenge for AML compliance. Their cryptographic features make tracing transactions exceedingly difficult, which can attract illicit activity. Exchanges that list these coins must implement exceptionally rigorous controls, often including enhanced KYC and lower withdrawal limits for these specific assets. Understanding and mitigating the unique risks associated with privacy coins is a specialist field. Standard screening may not be sufficient, necessitating advanced aml check strategies.