Blockchain-Powered Cryptocurrency Exchange with KYC/AML Compliance

Objective

To develop a secure, transparent, and regulatory-compliant cryptocurrency exchange platform that leverages blockchain for transaction transparency and integrates KYC/AML procedures to meet legal standards and ensure user trust.

Key Features

Decentralized or Hybrid Exchange Model: Peer-to-peer trading with optional central matching engine.

KYC/AML Integration: User identity verification using third-party services or blockchain-based identity solutions.

Smart Contracts for Trade Execution: Secure, automated execution of trades with escrow functionality.

Token Listings: Support for various crypto assets including ERC-20, BEP-20, etc.

Liquidity Pools: Enable users to provide liquidity and earn fees.

Audit Logs: Immutable blockchain records for every transaction.

Two-Factor Authentication (2FA): For enhanced account security.

Technologies Used

Blockchain Platforms: Ethereum, Binance Smart Chain, or Solana

Smart Contract Language: Solidity or Rust (depending on the blockchain)

Identity Verification APIs: Jumio, Onfido, Civic, or KILT Protocol for blockchain-based KYC

Frontend: React.js, Angular

Backend: Node.js, Express.js, or Go

Databases: MongoDB or PostgreSQL (for off-chain data)

Wallet Integration: MetaMask, Trust Wallet, WalletConnect

How It Works

User Registration & KYC: Users sign up and submit identity documents; smart contracts or APIs validate compliance.

Wallet Connection: Users link crypto wallets to their profiles.

Deposit & Trading: Users deposit funds and execute trades through smart contracts or exchange engine.

Trade Settlement: Smart contracts manage escrow and ensure trustless trade execution.

Compliance Logging: Every transaction is recorded and linked to verified identities for regulatory reporting.

Withdrawal: After successful trade or fund movement, users withdraw to their external wallets.

Benefits

Security & Trust: Smart contracts reduce fraud and hacking risks.

Regulatory Compliance: Built-in KYC/AML processes help meet global legal requirements.

Transparency: Blockchain logs provide full traceability and audit trails.

User Ownership: Users retain control of funds unless actively trading.

Global Access: Anyone can trade securely, with verified identity.