Crypto compliance means understanding the AML, KYC and sanctions rules exchanges enforce and screening your wallet before you transact; this guide explains those rules, and Plastron lets you check your own wallet free.

Crypto compliance is the application of anti-money laundering, sanctions, and financial regulation rules to cryptocurrency transactions and the businesses that facilitate them. While compliance obligations fall primarily on regulated businesses — exchanges, custodians, payment processors — individual users are affected by those rules every time they interact with a regulated platform. The compliance landscape for crypto users has several key dimensions. The first is sanctions compliance: OFAC prohibits US persons from transacting with designated addresses, and exchanges globally enforce OFAC rules as a condition of their banking relationships. The second is exchange AML screening: every regulated exchange checks incoming deposits against risk databases, and wallets with high-risk histories face delays, holds, and enhanced due diligence. The third is travel rule compliance: for transfers above threshold, VASPs must collect and transmit originator and beneficiary information — which means your wallet address and sometimes your identity are shared between platforms. The fourth is tax reporting: in most jurisdictions, crypto is treated as property for tax purposes, and gains and losses from crypto transactions are taxable. A complete compliance posture for an individual crypto user includes: keeping records of transaction history, understanding your wallet's AML risk profile before engaging with regulated exchanges, not transacting with OFAC-designated addresses, and reporting crypto gains and losses in accordance with tax law. For businesses, add AML programme requirements, customer due diligence, SAR filing obligations, and Travel Rule compliance. This guide focuses on the wallet-level compliance issues that affect every holder.