Complnce

[Anonymous]

Alex,

I was thinking about regulatry complince, and at the current state of things, AML/KYC are very important to keep peace of mind regarding authorities. So I was searching for services and found this one for example: https://crystalblockchain.com/

Do you think it would be implementeable thi solution as API?

I really do not know if there is some free API out there, maybe you?

Thank you

Best regards

[alexg]

Hello,

To be honest, I don’t know. Ultimately this is a whole different area of expertise that what I’m working on.

What you want is to be able to know who your users are. This involves them uploading documents such as passports and utility bills (proofs of address) to a third party service that can actually verify them. There might be plugins out there that do this on WordPress. If there are any, they should appear here: https://wordpress.org/plugins/tags/identity-verification/

This does not really need to interface with the exchange extension or the plugin. If there is a KYC service for WordPress, then that should be able to add your known customers to some user role or give them some capability. The capabilities you’re interested in are has_wallets and trade_funds_in_wallet. These should be given only to verified customers.

with regards

[Anonymous]

Thanks Alex for your suggeston.

For KYC process actually is simpler. With some form and handling the capability manually it should be OK. But an automated or near automated should be better if you can implement something.

For AML is more complicated, and that was my principal concern. Because the new regulations will ask to check if the crpytos are clean, and this involves tracking the crypto on the blockchain befaore it enters the wallet if it is OK. That is why I sent you the previous link, they offer an API for BTC and other relevant ones.

Please Alex keep me posted,

Thanks

Best regards

[alexg]

Yes, that is correct. Thanks for the link. Unfortunately Exchanges are legally required to check addresses against blacklists. There are a multitude of AML APIs out there and at this time I have not reviewed any of them. From a quick look, AML involves more than just blocking deposits from some known addresses. It also involves looking up peoples’ personal details against international databases. For example: https://docs.complyadvantage.com/api-docs/#concepts So this would have to be tied together to whatever system records the names/addresses of customers. This is definitely not something that I could implement at this time, and it would have to be a separate plugin.

[Anonymous]

Thanks for the link. The link I provided is one of the existing ones out there.

In the occasions I have met people from fnds for example, the question of “it is legal and compliant?” was very common.

Please Alex, consider its implementation because it will be mandatory, and if we want to run a legal business, this is something definitely prioritary if we consider compliance.

Thanks as usual

Best regards

[alexg]

I understand, this is one of the main reasons I’m not running an exchange myself. The main issue here is not technical. Blocking certain deposits based on the results of an API is trivial, and can be done with a simple hook in your theme.

The issue is that these AML services cost money, since they are targeted at larger exchanges and banks. Have you identified one that you would be willing to pay for? I highly doubt that any of my customers have the kind of money required to pay for the services I’ve seen so far. Additionally, I would also have to have access to such a service myself, in order to implement and test connectivity.

Ideally what we’re looking for is an affordable service that can be realistically used to query people and addresses against its API. I will look, but if you know of any one, please suggest it.

[Anonymous]

Exact, that is why I was asking in my first post, if maybe you was aware of any free service out there.

At some moment a decision should be taken, running something compliant at a certain cost, or being out of legality.

I am thinking now, using cloud wllt services like conpyments, as they did asking for KYC, maybe they will implement this from their side? do you know if they are working on this?

You said that you are not running an exchange (not even Shapshft?) for thi reason. But as I knew, all transactions will must be under this regultion, even for deposits. I spoke in person to some people working with governments in Europe to have guidelines about this, and it is not limited only to exchanges.

Of course if I discover something I will definitelyy let you know.

Thanks Alex

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