What is KYC / AML Gate?
A KYC/AML gate is the check that decides which wallets may hold or receive a regulated token. Know-your-customer verification identifies the holder; anti-money-laundering screening tests them against sanctions and risk lists. In tokenized securities the result is enforced at the token contract, so an unverified address simply cannot receive the asset.
Also called: KYC gate · AML screening · whitelisted wallet · permissioned transfer
Where the gate sits
There are two designs. Venue-level gating verifies users at the platform and leaves the token freely transferable, so control ends at the platform's edge. Token-level gating writes the rule into the asset: the contract consults an identity registry on every transfer and reverts if either side fails. Regulated security tokens use the second, because the obligation follows the instrument rather than the app.
What it means for holders
A gated token cannot be sent to an arbitrary wallet, cannot be supplied to a permissionless pool, and cannot be bridged to a chain where the registry does not exist. That is a deliberate trade: enforceable compliance in exchange for the composability an open ERC-20 has. Read the gate before assuming a tokenized security will behave like a crypto asset.
Frequently asked questions
Can I move a regulated tokenized security to any wallet?
No. If the destination address is not verified in the token's identity registry, the transfer reverts at the contract level.
Does KYC mean my identity is public on-chain?
No. The chain records that a verification claim exists and is valid; the underlying documents stay off-chain with the verifier.
Where this shows up live
On the desk
Methodology — what we do and do not claim
Every figure on those pages carries its source and as-of time. Nothing is shown when the upstream is unavailable.
Related terms
- T-REX (ERC-3643) — T-REX (ERC-3643) is an Ethereum token standard for compliant, permissioned security tokens.
- ONCHAINID — ONCHAINID is the on-chain identity layer used by permissioned security-token standards such as T-REX (ERC-3643).
- Eligibility (US vs Non-US) — Eligibility is the jurisdictional rule that decides who may hold a tokenized product.
More in Compliance
Attestation · Eligibility (US vs Non-US) · ONCHAINID · Proof of Reserve · T-REX (ERC-3643) · Transfer Agent
Informational only · not financial advice. See the live numbers on the data desk, the sourcing rules in the methodology, or the day's stories in the newsroom. · ← All glossary terms