Rules, KYC & taxes
Crypto rules shape how you buy, send and report crypto. These guides explain identity checks (KYC), the travel rule and the basics of crypto tax. Know Your Customer and anti-money-laundering checks are why services that sell crypto ask who you are. The travel rule means some transfers carry details about the sender and receiver. The tax guides cover what can create a tax bill, which records to keep, and the basics in the US and the UK. Rules differ by country and change over time. This is general information, not legal or tax advice.
Start here
What is the travel rule for crypto transfers?
It makes crypto service providers pass sender and receiver details along with the transfers they handle. The rule comes from FATF Recommendation 16, and in the EU it has applied to crypto transfers since 30 December 2024.
How is crypto taxed in the US and the UK?
Both countries can tax you when you sell, swap or spend crypto, but the details differ. These guides give the basics from official sources and are general information, not tax advice.
Key terms
- Verification Verification, often called KYC (Know Your Customer), is the identity check a crypto provider carries out before you can buy.
Frequently asked questions
What is KYC in crypto?
KYC, short for Know Your Customer, is the identity check a crypto service carries out before it lets you buy. You are usually asked for an ID document and sometimes a selfie or proof of address. The checks help stop fraud, money laundering and the use of stolen identities.
What is the difference between KYC and AML?
AML, short for anti-money laundering, is the wider set of laws and checks that aim to stop criminals from moving money through financial services. KYC is one part of it: the step where a service confirms who you are. AML also covers watching for unusual activity and reporting it to the authorities.
Why do I have to verify my identity to buy crypto?
Anti-money-laundering rules in many countries require businesses that exchange crypto for regular money to know who their customers are. When you buy on Coinmama, identity checks are carried out by the third-party provider that processes your purchase, and that provider tells you what it needs.
Do I pay tax when I buy crypto?
It depends on where you live. In the US, the IRS treats digital assets as property: buying with dollars and simply holding is not a taxable event, but selling or swapping crypto can be. In the UK, you may owe Capital Gains Tax when you sell, exchange, spend or give away crypto. This reflects official guidance as of September 2026 and is general information, not tax advice.
What records should I keep for crypto tax?
For every purchase, sale, swap and transfer, keep the date, the amount of crypto, its value in your local currency and any fees. Save your order confirmations and note the wallet addresses you use. Your tax authority sets how long you must keep these records.