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What AML/KYC Checks Are at a Crypto Exchange and Why They Exist

A plain-language explanation of AML and KYC, when an exchange may ask for documents, and how to get through the check without delays.

When you use a crypto exchange, you may sometimes be asked to pass a check. It is not a pointless formality but standard protection for both the service and its customers. Here is what stands behind it.

AML and KYC: what is the difference

AML (anti-money laundering) means preventing the laundering of illicit funds. At Draxma, every wallet address is checked against sanctions lists and the list of addresses blocked by the USDT issuer. Larger amounts are also checked for links to fraud, the darknet and stolen funds.

KYC (know your customer) is identity confirmation: a photo of your document and a selfie.

When a check is triggered

  • KYC is required from $1,000 per order or from $3,000 in total over 30 days.
  • Verification may also be requested after an AML check, for any amount.
  • Having an account does not replace the check: verification may be requested whether or not you have one.

What to do: step by step

  1. Create an exchange order and enter the address of a wallet that belongs to you. Before sending, double-check the address and the network — only TRC20 is accepted.
  2. Wait for the automatic AML check of the address. If the risk is low and no verification is needed, the payout is made automatically.
  3. If the amount reaches the KYC threshold, prepare a clear photo of your document and a selfie and send them when asked.
  4. If the exchange is paused because of high risk, open the order chat. You will be asked for documents confirming the origin of funds.
  5. Send the documents within 7 days. After a successful check, the exchange continues.
  6. Follow the status on the order page and by email. An exchange usually takes up to 30 minutes, but an extra check can add time.

You can read more in the AML / KYC policy.

Common mistakes

  • Someone else's or a "dirty" wallet. An address linked to fraud or sanctions will stop the exchange.
  • Ignoring the chat request. If documents are not provided within 7 days, the funds are returned with a 5% fee withheld, capped at 100 USDT, unless the law requires them to be blocked.
  • Paying from someone else's card. Payment is accepted only from a card or account in the name of the person who created the order.
  • A screenshot instead of a PDF. For card transfers in most directions, a PDF receipt from the bank app is required.
  • Trusting "staff" in messengers. Draxma never asks for passwords, SMS codes or seed phrases and does not message first from personal accounts. Check the draxma.io address.

Summary

AML/KYC exist to keep exchanges safe and lawful, and having your documents ready and using your own wallet helps you pass the check faster.

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