Registration & Legalities
Wharf Street Financials has taken a very progressive tactic to virtual currency, positioning itself as a business fully complied in crypto regulation based on FATF regulation and client’ jurisdiction regulatory.
Most governments allow the use of cryptocurrencies. According to the most regulations ( FATF, FINTRAC, MONEVAL, and ….)on digital currencies, you can use digital currencies to buy goods and services on the Internet and in stores that accept digital currencies. You may also buy and sell digital currency on open exchanges, called digital currency or cryptocurrency exchanges. However,cryptocurrencies are not considered legal tender in Canada.
Based on these laws, virtual currencies, including Bitcoin, has been treated as “money service businesses” for purposes of anti-money laundering laws. As a result of the law, companies dealing in virtual currencies are required to register on any jurisdiction, put into effect compliance programs, “keep and retain prescribed records,” report suspicious or terrorist-related property transactions, and determine if any of their customers are “politically exposed persons”.
The VFA regulations (effective from November 2018) also introduced the Innovative Technology Arrangements and Services Act which established the regime for the future registration and accountability of crypto service providers. Going forward, the MDIA will be the government authority responsible for creating crypto policy, collaborating with other nations and organizations, and enforcing ethical standards for the use of crypto and blockchain technology.
We strive to protect our Users from fraudulent and scam activities in the crypto assets sphere. It is possible that certain crypto assets are used for the scam or any other criminal activity, as defined by law. To prevent this, it is necessary to take measures to ensure customer verification and security of financial transactions. One of the best measures is AML/KYC procedure, which allows us to confirm, that you are a law-abiding individual or corporation.
WSF service has a risk scoring system that can spot suspicious activity. If the system flags a transaction, it will put on hold, and the User is asked to pass AML & KYС verification. For the reasons of security, we are not able to disclose specific criteria of our system. However, it has proven to be very effective against money launderers, scammers, etc.
WSF service reserves the right to apply the AML/KYC procedure to certain Users, addresses and transactions of crypto assets. Application of the AML/KYC procedure is based on WSF service internal policies and aimed at preventing and mitigating possible risks of WSF service have been involved in money laundering as well as any other illegal activities.
WSF service will not enter a business agreement with individual or entity suspected of or directly involved in money laundering, or in which the funds have been the source of illegal activity.
AML and KYC Procedure
AML/KYC procedure might be applied in respect to those crypto assets paying, which are found to be suspicious by our automated risk prevention system. In these cases, WSF service will contact the User by email registered with the account.
AML/KYC procedure includes confirming the identity of Users by means of:
- A high-quality photo of their ID (passport or driving license) valid in their country;
- Proof of the origin of funds;
- Any other applicable documentation.
- Upon successful completion of the AML/KYC procedure, the transaction will be executed.
In case the User refuses to undergo the AML/KYC procedure, the transaction will be rejected, and the crypto assets will be returned to the relevant account with very less applicable fees. Thereafter, WSF service will freeze the User account and blacklist the wallet address (exceptions may apply to an address of a trusted service). This User account will no longer be eligible to avail WSF services.
If WSF service receives, in response to its request for documentation, deceptive documentation, contact details or other false information, the crypto assets will be returned to where it originated with very less applicable fees. WSF service may forward the information collected during AML/KYC procedure to the competent authorities upon legitimate request.
To check the validity of the clients, convertible virtual currencies that can be exchanged for real money or other virtual currencies are potentially vulnerable to money laundering and terrorist financing abuse for many of the reasons; for example, they may allow greater anonymity than traditional non-cash payment methods. Virtual currency systems can be traded on the Internet, are generally characterized by non-face-to-face customer relationships and may permit anonymous funding (cash funding or third-party funding through virtual exchanges that do not properly identify the funding source). They may also permit anonymous transfers if the sender and recipient are not adequately identified. WSF is applying a Risk-Based Assessment To mitigate this risk. According to this risk assessment, WSF is regulating exchanges platforms between convertible virtual currencies and fiat currencies. Also, all non-face to face users are obliged to pass Wharf Street Financials KYC procedures, which are monitored by all sanction list.