# AML/KYC ## ([Medium Post](https://thijsmaas.medium.com/kyc-aml-compliance-for-wallets-and-exchanges-might-be-easier-than-you-think-572a3fbd2867)) KYC/AML compliance for wallets and exchanges might be easier than you think! - Not at all an authoritative source, but contains links to helpful resources - Links to [fiat2cryp.to](https://fiat2cryp.to/) which compares Onramper, BANXA, MoonPay, Wyre, Paxful, etc. ### Compliance for wallets (U.S. law) >In the U.S., KYC/AML laws are regulated by [FinCEN](https://www.fincen.gov/). Its KYC/AML laws are applicable to Money Services Businesses (MSB). So-called ‘money transmitters’ are seen as MSBs. In other words, if you are a money transmitter, extensive compliance obligations are applicable to you. > >In its 2019 Guidance on Convertible Virtual Currencies (CVCs), FinCEN [made the same distinction as the EU](https://hollandfintech.com/wp-content/uploads/2019/03/digital_assets.pdf). The regulator clarified that custodian wallet providers are money transmitters, while non-custodian wallets are not. > >In other words, if a wallet operator does not hold the private keys of the user, KYC/AML laws are not applicable. ### Wallets with fiat gateways >In short, wallet operators have to ensure they do not hold the private keys of their users to make sure they aren’t caught by KYC/AML law. > >But there’s more to it. > >As mentioned, the [EU’s KYC/AML regime](https://ec.europa.eu/info/business-economy-euro/banking-and-finance/financial-supervision-and-risk-management/anti-money-laundering-and-counter-terrorist-financing_en) applies to ‘obliged entities’. Aside from custodian wallet providers, another category of obliged entities are ‘providers engaged in exchange services between virtual currencies and fiat currencies’ (Art. 2(1)(3)(g)). > >For wallet providers, a fiat onramp can provide a much-needed source of revenue. However, as soon as a wallet allows for the exchange of fiat currencies (EUR, USD, etc.) to cryptocurrencies, it would classify as an obliged entity in the EU, and a MSB in the U.S. > >To get around this problem, wallet providers can integrate fiat gateways of third-parties. There are many [third-party fiat gateways](http://fiat2cryp.to/) (with widgets and/or APIs that can be implemented by others), who take the compliance burden upon themselves. > >However, third-party fiat to crypto gateways specialize in certain regions. To provide local payment methods and get global coverage, developers have to integrate multiple gateways to provide a good fiat to crypto onramp. This is a lot of work: they have to go through each providers’ KYC, negotiation and contracting processes, and then integrate their APIs. > >Instead, it’s easier to integrate a fiat-to-crypto [gateway aggregator like Onramper](https://onramper.com/) is the easiest option.