Customer Due Diligence (CDD)

Customer Due Diligence (CDD) in the context of cryptocurrencies refers to the process by which cryptocurrency businesses, such as exchanges and wallet providers, verify the identity of their customers and assess the risk associated with their activities. This process involves collecting and verifying information about customers, such as their identity, address, source of funds, and intended use of the services. The goal of CDD is to prevent money laundering, terrorist financing, and other illicit activities by ensuring that businesses have a clear understanding of their customers and the transactions they conduct. CDD may include identity verification through Know Your Customer (KYC) procedures, ongoing monitoring of customer transactions, and risk-based assessments to determine the level of due diligence required for each customer.