I've noticed that many in the crypto community get confused between the terms KYC, AML, and CDD.

Let's clarify what they actually mean because it's important not only for exchanges but for everyone working with finance.

CDD stands for Customer Due Diligence — essentially, a set of data that companies collect about you to comply with anti-money laundering laws.
It sounds boring, but in reality, it's protection for all of us.
When you open an account on an exchange or in a bank, they collect your name, address, date of birth, citizenship, income information.
Sometimes they add TIN, passport number, employment history.

There are two levels of CDD you need to understand.
Basic verification is the minimum required by law: personal data, address, date of birth, citizenship.
This is standard for everyone.
But if the company sees increased risk, it can request enhanced CDD — additional documents, sources of income, employment history.
This is necessary to protect against financial crimes.

Why is this even important?
Because based on CDD, companies decide whether to open an account for you and what level of monitoring to apply.
If the data looks suspicious, they may refuse or ask for more information.
It's not just bureaucracy — it's real protection against money laundering and fraud.

How do they collect this data in practice?
Usually, they ask you to fill out a form, sometimes use online questionnaires, verify information through public records.
The collected CDD data must be stored in secure databases with restricted access — this is a legal requirement.

Personal opinion: as the crypto industry grows, CDD requirements only tighten.
Exchanges collect more and more information to comply with regulations of different countries.
This isn't liked by maximalists, but it's the reality.
The future lies in stricter checks and full transparency.
If you work seriously with crypto, it's better to get used to this now and keep all your documents in order.