Open Exodus Compliance and Regulation
22 July 2022 Open Exodus

Regulation, Compliance, AML/KYC and Audits

Amidst the pioneering cryptocurrency revolution, digital assets have emerged as a modern financial technology that has left regulators and governments struggling to understand it, never mind regulate it. Especially in such a fast-moving space, with innovations such as NFTs or DeFi Exchanges causing even more regulatory headaches.

The most basic regulatory compliance, especially in regards to the EU and still the UK, is of course Know Your Client and Anti-Money Laundering – known as KYC/AML. These procedures are a basic for all financial institutions, from banks to money transfer services to cryptocurrency exchanges. These basic checks help us at Open Exodus to avoid any illegal undertakings whilst reducing the risks associated with money laundering and terrorist activity.

Some of the processes we implement, depending on the client and the relevant products are as follows:

  • Conducting Full KYC/AML
  • Collecting Beneficial Ownership for Corporate Investors
  • Conducting Risk Analysis on Public Records
  • Monitoring Transactional Activity on The Blockchain
  • Adverse Media Screening
  • All these tools, aid us, Open Exodus; but how do we ensure the same level of trust from you, the clients in us?

    Advantages of Audits and KYC Screening

    Open Exodus, like many other major organizations have decided to be proactive in this lack of clarity regards regulation, as regulators around much of the world seem either uninterested, uninformed or simply incapable; there’s either no regulation or it’s banned altogether in countries such as Russia.

    We are members of two voluntary organistions who aim to advance and propose regulatory frameworks to international regulators:

    The Global Institute for Blockchain Governance

    We are a member of the Executive Committee for the Global Institute for Blockchain Governance (GIBG).

    The GIBG is a non-profit organization comprised of individuals and corporations who together form working groups to address key challenges facing the cryptocurrency and wider blockchain industry and propose regulatory frameworks to aid governments, financial institutions and regulatory authorities in the development of the global digital economy.

    Implementing these frameworks is a pre-requisite for joining the GIBG, giving members a say in shaping the frameworks, enabling them to be prepared in advance for any regulatory changes and offering their clients and users a secure and trusted environment within which to transact and grow.

    Association of Blockchain and Cryptocurrency Enterprises

    The Association of Blockchain and Cryptocurrency Enterprises (ABCE) is a self-regulatory body, that helps to was created to help foster trust and transparency amongst the general public, acting in much the same was any traditional trade association accreditation.

    With all members committing to the same code of conduct, it helps foment new partnerships and stimulate economic opportunity and market growth for all members alike and helps foster trust and transparency amongst investors.

    Open Exodus Audit

    Aside from this we also on a yearly basis submit to an external audit by Blockchain and Cryptocurrency auditors Open Diligence. This audit no only concerns the managing of customer funds but also analysis of our internal infrastructure, proprietary technology as well as our bespoke smart contracts.

    The advantage audits and AML/KYC processes bring to clients is the contribution to a well-regulated crypto space and to ensure no vulnerability that would risk either the company or its investors. Analysis and code validation helps us to maintain genuine transactions and transparency and acquire the help required in case of bad actors.

    We at Open Exodus are of the opinion that in the absence of government regulation, it’s up to all players in the crypto space to take steps towards regulation, bringing trust to crypto is crucial to the wider adoption of the industry and the success and safety of all.

    Our partnerships with significant cryptocurrency and blockchain associations is part of Open Exodus’s drive to build a world of opportunities, to instill faith in cryptocurrency and to ensure the growth of all.