P2140.3 - Standard for User Identification and Anti-Money Laundering on Cryptocurrency Exchanges

Project Details

This standard defines requirements for multiple aspects of user identification and Anti-Money Laundering on cryptocurrency exchanges, such as KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, outsourcing proper compliance measures to third-party solutions, and building up a self-regulatory layer of security and accountability among exchanges. It is to keep customers from malignant influence of unethical and illegal money that can be traced back inside/outside the cryptocurrency space. It is different from the P2140.2 standard, which is based on the protection of customer cryptographic assets.

Standards Committee	CTS/BSC - Blockchain Standards Committee
PAR Approval	2019-06-13
PARs	Approved PAR

Working Group Details

Working Group	CEWG - Cryptocurrency Exchange Working Group
Standards Committee	CTS/BSC - Blockchain Standards Committee
Society	IEEE Consumer Technology Society
IEEE Program Manager	Soo Kim
Active Projects	Active P2140.2 - Standard for Security Management for Customer Cryptographic Assets on Cryptocurrency Exchanges This standard defines requirements for multiple aspects of security management for customer cryptographic assets on cryptocurrency exchanges, such as user identification using multi-factor authentication, prioritized protection of customer assets under unforeseen circumstances, and professional ethics of operation for cryptocurrency exchange platforms.
	Active P2140.4 - Standard for Distributed/Decentralized Exchange Framework using DLT (Distributed Ledger Technology) This standard defines an extension framework based on P2140.1. The extension framework uses a Smart Contract mechanism to process transactions on an exchange, to replace the role of exchange operators. Cryptographic solutions to provide "data privacy" and "data protection" are defined. This standard also defines a series of extensible interfaces for the exchange scenario, enabling support of third-party financial derivatives using tokens.
Existing Standards	Active IEEE 2140.1-2020 - IEEE Standard for General Requirements for Cryptocurrency Exchanges Self-discipline and professional ethics of cryptocurrency exchange platforms, as well as relevance between them and to cryptocurrency wallets are covered in this standard. Exchange business logic, operational procedures, user authentication programs are also covered in this standard. In addition, a small but necessary technical category of requirements, including terminologies, basic architectural framework, key indicators, end-user interface specifications, in order to achieve the previously mentioned goals is covered in this standard.
	Active IEEE 2140.5-2020 - IEEE Standard for a Custodian Framework of Cryptocurrency A framework of a custodian service for cryptocurrency and token assets is defined in this standard. Custodian reference technical architecture, business logic description, custodian service business models, digital asset evaluation criteria, operational procedure models, and regulatory requirement support models are included in this framework.