AML (Anti-Money Laundering) requirements are still viewed ambiguously in the crypto industry. Some see them as a threat to privacy, others as a necessary layer of security for honest users. Let’s unpack why AML checks are actually conducted, how they work, and why they serve the interests of most participants.
For those who prefer video
The BestChange channel has a video, “Why Do You Need an AML Check? What Are AML and KYC?” (2025)—a brief explanation of the basics and practice.
The purpose of AML and who sets the rules
AML controls are designed to detect and prevent transactions tied to criminal activity: money laundering, drug trafficking, illicit arms trade, terrorist financing, and so on. This is not the private initiative of exchanges or swap services—rules are formed at the international level and supported by bodies such as the FATF (Financial Action Task Force) and OFAC (Office of Foreign Assets Control).
If an automated address analysis flags elevated risk, a transfer may be paused until details are clarified. Typical triggers inсlude:
- links to unsafe sources or high-anonymity services;
- amount splitting and obfuscation of payment chains;
- use of wallets implicated in fraud schemes;
- unusually large or overly frequent transactions.
What is checked when AML is triggered
The service clarifies who the sender and recipient are, the source of funds, whether there are links to previously compromised addresses, and whether the client can verify identity and explain the economic purpose of the transfer.
Why AML doesn’t contradict the idea of cryptocurrency
You are free to transfer assets directly between your own wallets without KYC/AML—decentralized protocols allow it. But once you use centralized intermediaries (an exchange, swap desk, or payment platform), the regulations of the jurisdiction where the company is registered apply. Such organizations must comply with regulatory requirements or face fines, blocks, and accusations of facilitating money laundering. Therefore, verifying the origin of funds and identifying users is not a whim—it’s a condition for stable service operations and client safety.
Where “dirty” crypto comes from and why it’s risky
Sometimes users deliberately choose platforms that “don’t ask questions.” The risks are:
- crypto previously involved in illegal activity may end up in your wallet;
- such assets are likely to be blocked at the next step—when moving to an exchange or a bank account;
- lack of screening attracts scammers and reduces safety for everyone on the platform.
How BestChange helps reduce risk
BestChange lists exchange services that undergo regular verification and follow baseline AML procedures. There is also an address AML analyzer—you can pre-check the “cleanliness” of sender and recipient wallets and get recommendations before sending funds.
Where the money sits if a block occurs
When a transfer is sent for additional review, funds usually do not reach the final recipient and are temporarily held:
- in the service’s internal wallet;
- at a technical address of the service;
- at an exchange used as a liquidity provider (if applicable).
Even if coins are moved to another address within the service’s infrastructure, by internal policy they are considered “frozen” until the review is completed and cannot be withdrawn.
What happens after funds are frozen
The service may request from the client:
- identity verification (KYC: ID data, proof of address, etc.);
- documents proving the source of funds;
- a description of the transaction logic (purpose, counterparties, source of funds).
Once verification is successful, the transfer is either completed or the funds are returned to the sender. In complex cases, assets may be confiscated by court order—if criminal origin is proven. Until an official ruling is issued, the service must keep funds isolated.
Why a fee may be charged during extended reviews
If a case consumes substantial resources, a service may charge a fee upon refund/cancellation. This covers:
- staff time and case handling;
- the cost of AML tools and additional checks;
- legal risks (e.g., the service’s own accounts being frozen).
The fee amount is set by the service’s rules and should not exceed reasonable costs. BestChange enforces a clear limit: a refund fee of no more than 5% of the exchange amount and no more than $100. The exchange service must also explain the reasons for the block and itemize expenses.
BestChange’s role in disputed situations
If a transfer is halted, the BestChange team gets involved: they help collect data, verify information accuracy, and accompany the case through completion—so the client receives a refund or the transfer is finalized according to the rules.
Security as part of freedom
AML procedures are not bureaucratic red tape or an attempt to strip users of freedom. They are a foundational safety mechanism that reduces fraud, keeps illicit funds out of circulation, and helps services operate within the law. In the overwhelming majority of cases, checks are seamless; when delays occur, modern infrastructure—BestChange included—keeps the process as transparent and predictable as possible.
Bottom line: the better you understand AML and KYC, the easier it is to avoid unnecessary risk, pass reviews quickly, and use cryptocurrency confidently in daily transactions.