Verifying customer identity is a critical step for AMMs, ensuring:

1. _Compliance_: Adherence to anti-money laundering (AML) and know-your-customer (KYC) regulations.

2. _Fraud prevention_: Protection against identity fraud and unauthorized transactions.

3. _Security_: Prevention of illegal activities, such as money laundering and terrorist financing.

4. _Customer protection_: Ensuring customers are who they claim to be.

5. _Risk assessment_: Accurate evaluation of customer risk profiles.

6. _Account security_: Prevention of account takeover and unauthorized access.

7. _Trust and confidence_: Demonstrated commitment to customer security and privacy.

8. _Regulatory alignment_: Meeting regulatory requirements for customer due diligence.

By verifying customer identity, AMMs create a secure and trustworthy trading environment, protecting customers and preventing illegal activities.