Customer Due Diligence (CDD)

Customer due diligence, or CDD, is the process by which a regulated crypto platform identifies who its customer is, verifies that identity with reliable documents or data, and forms a view of the purpose and expected pattern of the relationship. It goes beyond a one-off identity check: platforms are generally expected to keep information current, monitor whether activity matches the customer's stated profile, and identify the beneficial owner behind a company account. Where risk appears higher — unusual jurisdictions, politically exposed persons, very large or complex flows — enhanced due diligence applies, meaning deeper questions about source of wealth and source of funds. Simplified checks may be allowed for demonstrably low-risk cases. Standards differ by jurisdiction.