KYC and AML are the obligations to identify the customer and monitor the origin of funds to prevent money laundering. In a token issuance they determine who can be a holder and when verification takes place, and that is why they are usually built into the design of the registry and transfers themselves.
KYC and AML is a key term for understanding regulated tokenization in Spain. Here it is explained clearly.
What is KYC and AML
KYC (know your customer) and AML (anti-money laundering, in Spain PBC/FT) are the obligations to identify customers and monitor the origin of funds. They apply to any project that admits investors, whether tokenized or not (Ley 10/2010).
In a security token issuance, they translate into identity verification and restrictions that limit transfers to previously verified wallets. The obligated subject is the corresponding regulated actor; the software facilitates technical implementation. We frame it within how to issue a security token.
Frequently asked questions
What is the difference between KYC and AML?
KYC is identifying and verifying the customer; AML (PBC/FT) is the set of measures to prevent money laundering and terrorist financing (Ley 10/2010).
Does KYC/AML apply to a security token?
Yes. Any issuance that admits investors is subject to PBC/FT obligations, which on-chain are applied with whitelists and transfer restrictions.
More terms in the tokenization glossary.
Notice
Informational content. It does not constitute legal, tax or investment advice. Check the current version of the cited rules on BOE and EUR-Lex.
To go deeper into the full framework (LMVSI, ERIR, prospectus and secondary market), the report “Regulated asset tokenization in Spain 2026” is available, prepared from BOE, CNMV and EUR-Lex sources.
Are you considering tokenizing an asset or issuing a security token in Spain? At HokenFi we structure the issuance in accordance with Ley 6/2023 (LMVSI), MiFID II and the ERIR, with the CNMV as a reference. Run the diagnostic for your issuance (2 min) → or talk to our team
HokenFi is a software and infrastructure provider; it does not provide regulated services (CASP, ESI, EAF, or ERIR). This article is informative and does not constitute financial or legal advice.
