Bitcoin
Bitcoin
BTC
$103,171.00
1d: -0.59%
7d: -0.08%
$103,171.00
-0.59%
Ethereum
Ethereum
ETH
$2,473.34
1d: -4.15%
7d: -1.04%
$2,473.34
-4.15%
Polkadot
Polkadot
DOT
$4.61
1d: -3.90%
7d: -9.13%
$4.61
-3.90%
Solana
Solana
SOL
$165.43
1d: -2.88%
7d: -3.96%
$165.43
-2.88%
XRP
XRP
XRP
$2.34
1d: -2.82%
7d: -3.20%
$2.34
-2.82%
Shiba Inu
Shiba Inu
SHIB
$0.00001412
1d: -4.58%
7d: -11.64%
$0.00001412
-4.58%

Customer Due Diligence (CDD)

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Table of contents
    1. 0.2. How CDD Works
    2. 0.4. Importance in Crypto

Customer Due Diligence (CDD) is a process used by financial institutions and crypto platforms to verify the identity of their customers and assess the risk of illegal activity like money laundering or fraud. It is a core requirement under anti-money laundering (AML) regulations.

How CDD Works

CDD typically involves collecting personal information such as name, address, date of birth, and official identification documents. For higher-risk individuals or transactions, Enhanced Due Diligence (EDD) may be required, which includes deeper background checks and transaction monitoring.

Importance in Crypto

In the crypto space, CDD helps exchanges, wallets, and DeFi platforms stay compliant with global regulations. It builds trust and transparency, while reducing the risk of criminal misuse. Without proper CDD, platforms may face fines, shutdowns, or reputational damage.