General
Beginner
Updated 1/15/2025
What is
AML (Anti-Money Laundering)?
Regulatory framework requiring financial institutions to detect and prevent money laundering. Ergo's optional privacy allows compliance while preserving user choice.
Anti-Money Laundering (AML) refers to laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. In cryptocurrency, AML typically involves exchanges implementing Know Your Customer (KYC) procedures and transaction monitoring. Ergo's approach to privacy is AML-compatible: it offers optional privacy features (Sigma protocols, ErgoMixer) rather than privacy-by-default, allowing users to prove transaction legitimacy when required while maintaining privacy for everyday transactions.
Key Points
- Regulations to prevent laundering criminal proceeds
- Requires KYC on centralized exchanges
- Ergo offers optional, not mandatory, privacy
- Sigma protocols enable selective disclosure
- Can prove transaction legitimacy when needed
- Balances privacy with regulatory compliance
Use Cases
1
Understanding exchange requirements
2
Evaluating Ergo's regulatory positioning
3
Proving transaction legitimacy when required
4
Selective disclosure for compliance
Technical Details
Ergo's Sigma protocols enable 'compliant privacy' - users can create zero-knowledge proofs about their transactions without revealing all details. For example, proving funds came from a legitimate source without revealing the exact source. This contrasts with privacy-by-default coins where proving legitimacy is difficult. Exchanges listing ERG implement standard AML/KYC procedures.
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Frequently Asked Questions
Questions about AML (Anti-Money Laundering)
Common questions about this topic
How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
How-to
Getting Started
Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Comparison
Getting Started
What can I do with Ergo?
Ergo supports a full ecosystem: trade on Spectrum DEX, use SigmaUSD stablecoin, mix transactions with ErgoMixer, collect NFTs on SkyHarbor, mine with GPUs, lend/borrow on DuckPools, bridge to other chains via Rosen, and build dApps with ErgoScript. It's a complete platform for decentralized finance and applications.
Explainer
Getting Started
Is Ergo better than Monero for privacy?
Different privacy models for different needs. Monero provides always-on, protocol-level privacy with ring signatures. Ergo offers optional privacy via Sigma Protocols with selective disclosure - you can prove things about data without revealing the data. Ergo excels at programmable privacy (private smart contracts), while Monero excels at simple private transfers.
Comparison
Privacy