AML/KYC Policy

Krypta ("Platform") is committed to maintaining the highest standards of compliance with applicable anti-money laundering (AML), counter-terrorist financing (CTF), and know-your-customer (KYC) laws and regulations. This policy outlines the procedures and measures implemented by the Platform to prevent its services from being used for money laundering, terrorist financing, or other illicit activities.

This policy applies to all users of the Platform without exception. The Platform reserves the right to enforce this policy at any time and to take any actions it deems necessary to ensure compliance.

The Platform acts as a technology intermediary providing a P2P trading environment. While the Platform does not independently verify the origin or legitimacy of every unit of cryptocurrency transacted through its infrastructure, it implements risk-based monitoring and reserves the right to intervene when indicators of suspicious activity are detected.

The Platform does not accept, hold, process, or transmit fiat currency in any form. All fiat payments between users occur outside the Platform's infrastructure and are the sole responsibility of the users involved.

All users must complete a KYC verification process before they can participate in trading activities on the Platform. The verification process includes the following tiers:

Basic Verification (Tier 1): Requires a valid email address, phone number verification, and basic personal information (full name, date of birth, country of residence). This tier allows limited Platform functionality.

Enhanced Verification (Tier 2): Requires a government-issued identification document (passport, national ID, or driver's license), proof of address (utility bill, bank statement, or government correspondence dated within the last 3 months), and a selfie for facial comparison. This tier unlocks full trading capabilities.

Extended Due Diligence (Tier 3): May be required for users with high transaction volumes, users from higher-risk jurisdictions, or users flagged by the Platform's risk systems. Additional documentation may include: source of funds declaration, bank account statements, business registration documents (for corporate accounts), and any other documents the Platform deems necessary.

The Platform conducts ongoing customer due diligence throughout the business relationship. This includes: (a) monitoring user activity for unusual patterns; (b) periodically requesting updated verification documents; (c) applying enhanced scrutiny to high-risk users or transactions; (d) screening users against international sanctions lists, PEP (Politically Exposed Persons) databases, and adverse media.

The Platform may refuse to establish or continue a business relationship if it is unable to conduct satisfactory customer due diligence.

The Platform employs automated and manual transaction monitoring systems to detect suspicious activity. Monitoring parameters include, but are not limited to: (a) unusually large transactions relative to the user's profile; (b) rapid and frequent transactions that deviate from normal behavior; (c) transactions involving sanctioned jurisdictions or entities; (d) patterns consistent with known money laundering typologies; (e) transactions involving cryptocurrency addresses associated with illicit activity (based on blockchain analytics); (f) attempts to structure transactions to avoid reporting thresholds; (g) sudden changes in transaction behavior.

The Platform utilizes AI-based risk scoring models and blockchain analytics tools to enhance the effectiveness of its monitoring systems. Users acknowledge that blockchain analytics is a probabilistic tool that may produce false positives or false negatives. The results of blockchain analysis are not a definitive determination of the lawful or unlawful origin of cryptocurrency, but serve as one of several factors in the Platform's risk assessment process.

When the Platform identifies indicators of suspicious activity, it may take one or more of the following actions: (a) request additional information or documentation from the user, including but not limited to AML questionnaires, source of funds declarations, and transaction purpose explanations; (b) temporarily suspend the user's ability to trade, withdraw, or deposit; (c) freeze cryptocurrency held in the user's account or in escrow; (d) restrict account functionality; (e) file a suspicious activity report (SAR) with relevant authorities; (f) permanently terminate the user's account.

The Platform is not obligated to inform the user of the specific reasons for any action taken under this section, particularly where disclosure could compromise an investigation or violate applicable law.

The Platform expressly reserves the right to freeze, suspend, or restrict access to any cryptocurrency held on the Platform (including in escrow) in the following circumstances: (a) the Platform identifies or suspects that the assets are connected to illegal activity, including but not limited to money laundering, terrorism financing, fraud, sanctions evasion, or any other criminal offense; (b) the Platform receives a lawful directive from a competent authority to freeze assets; (c) the user fails to comply with a request for additional KYC/AML verification within the specified timeframe; (d) the Platform's automated or manual risk assessment identifies the transaction or account as high-risk.

Frozen assets will remain frozen until the matter is resolved to the Platform's satisfaction, until a lawful directive is received from competent authorities, or until the user provides adequate documentation to address the Platform's concerns. The Platform shall not be liable for any losses, damages, or opportunity costs resulting from the freezing of assets under this policy.

The Platform may, at its sole discretion, require any seller to undergo enhanced AML verification before, during, or after a transaction. This may include: (a) a declaration of the source of the cryptocurrency being sold; (b) documentation proving the lawful acquisition of the cryptocurrency (e.g., exchange withdrawal records, mining receipts, employment or business income documentation); (c) a blockchain analytics report or consent for the Platform to run such analysis on the seller's cryptocurrency; (d) any other information or documentation that the Platform deems necessary to assess the legitimacy of the transaction.

Failure to provide the requested documentation within the specified timeframe may result in the suspension or cancellation of the transaction, freezing of assets, and potential account termination.

The Platform's AML verification procedures, including source of funds checks, do not constitute a confirmation or guarantee of the lawful origin of cryptocurrency. The Platform conducts reasonable checks based on available information and industry-standard tools, but does not warrant the completeness or accuracy of such verification. Users bear full responsibility for the lawful origin of their assets.

The Platform will cooperate fully, unconditionally, and without delay with law enforcement agencies, regulatory authorities, financial intelligence units, courts, and other competent authorities of any jurisdiction in matters related to anti-money laundering, counter-terrorist financing, sanctions compliance, fraud investigation, and any other lawful purpose.

Cooperation includes, but is not limited to: (a) providing user identification and verification data; (b) disclosing transaction history and records; (c) sharing IP addresses, device information, and access logs; (d) providing communication records stored on the Platform; (e) freezing or seizing assets as directed by competent authorities; (f) providing testimony or evidence in legal proceedings; (g) any other form of assistance requested by authorities within the scope of applicable law.

The Platform may, to the extent permitted by applicable law, proactively share information with authorities where it has reasonable grounds to suspect illegal activity, even in the absence of a formal request.

The Platform will not notify users of law enforcement requests or actions where such notification is prohibited by law, could compromise an investigation, or could endanger any person.

The Platform does not provide services to individuals or entities subject to economic sanctions imposed by the European Union (EU), the U.S. Office of Foreign Assets Control (OFAC), the United Nations (UN), or other applicable sanctions regimes. Users are screened against relevant sanctions lists as part of the KYC and ongoing due diligence processes.

By using the Platform, each user represents and warrants that they are not: (a) listed on any applicable sanctions list; (b) owned or controlled by, or acting on behalf of, a person or entity on any applicable sanctions list; (c) located in, a citizen or resident of, or organized under the laws of any sanctioned jurisdiction. The Platform reserves the right to immediately freeze assets and terminate access for any user found to be in violation of this section.

The Platform does not accept, receive, hold, process, or transmit fiat currency (government-issued money) in any form. The Platform does not act as a payment agent, payment service provider, e-money institution, or any other form of financial intermediary with respect to fiat funds.

All fiat payments between users are conducted directly between the parties, outside the Platform's infrastructure, using payment methods chosen and agreed upon by the users themselves. The Platform has no visibility into, control over, or responsibility for any fiat payment between users, including its execution, timing, accuracy, method, or legality.

The Platform maintains comprehensive records of all KYC verification data, transaction records, risk assessments, suspicious activity reports, and communications related to AML/KYC compliance. Records are retained for a minimum of 5 years from the date of the transaction or the end of the business relationship, whichever is later, or for a longer period as required by applicable law.

The Platform adopts a risk-based approach to AML/KYC compliance. The level of due diligence applied to each user and transaction is proportionate to the assessed risk. Factors considered in risk assessment include: user's jurisdiction, transaction volume and frequency, source of funds, counterparty risk, cryptocurrency type and associated risk level, and behavioral patterns.

The Platform maintains a reporting framework designed to comply with applicable regulatory requirements across jurisdictions where its services are available. This includes, where applicable: (a) filing suspicious activity reports (SARs) or suspicious transaction reports (STRs) with relevant financial intelligence units; (b) complying with cross-border information sharing requirements; (c) responding to requests under mutual legal assistance treaties (MLATs); (d) adhering to applicable data protection regulations when processing and sharing compliance-related data.

The specific reporting obligations and procedures may vary depending on the applicable jurisdiction and regulatory framework. The Platform continuously monitors regulatory developments and updates its reporting procedures accordingly.

All Platform personnel involved in compliance, customer support, and risk management receive regular training on AML/KYC obligations, red flag recognition, suspicious activity identification, and reporting procedures. The Platform designates a compliance officer responsible for overseeing the implementation and enforcement of this policy.

This policy is reviewed and updated regularly to reflect changes in applicable laws, regulations, and industry best practices. Users will be notified of material changes through the Platform. Continued use of the Platform after changes constitutes acceptance of the updated policy.

For questions about this AML/KYC Policy, please contact us at: compliance@krypta.exchange