Yen and KYC / AML Requirements?

dex
regulation
kyc
aml

#1

A question that we’ve been answering a lot recently is whether Yen will be subject to KYC / AML requirements per SEC for institutional trading.

Our answer to that question is actually one more of pragmatics and programming than legal considerations and regulation.

More specifically, if we’re going to move toward a DEX (Decentralized Exchange) then we can / could follow what most DEXs are doing: Ignoring KYC / AML.

There’s a really decent argument that DEXs are, for simplicity’s sake, a glorified iteration on Craigslist where the system or platform assists independent parties find one another so that they can transact (and the platform / system adopts a form of finder's fee… essentially.

Some DEXs are going to simply ignore KYC and AML while others will attempt to comply with these regulations, even if they do not necessarily have to.

But, that’s assuming that no major change to current regulation appears… and we all know that it’s just begun. So… the jury is really still out.

Our hope is to build a system that respects the spirit of regulation (if not just the law) and allows people to transact freely. It’s going to be hard, but, it’s worth the conversation and the effort.


#2

Have you looked into the requirements to integrate to a KYC/AML service if it becomes necessary? It might be cheaper and ultimately quicker to build some of the hooks in now rather than trying to retrofit at a later date if required!


#3

Yes, we’ve begun looking into it for sure. Any thoughts on implementation?


#4

I’d need to look at the market but I know that pillarproject.io had on their roadmap to build into their offer a distributed KYC/AML capability which would be also made available via an API. I am pretty sure there were others too.

Tradle was the other one but I am sure there are more https://tradle.io/


#5

I am not sure but would the Civic blockchain work in this matter? Some really big companies (AB-InBev is one of them) are starting to test some applications with Civic.


#6

@john we implemented https://complyadvantage.com/ for AML and Sanctions compliance. It is not cheap but seems to get the job done for screening at scale.

KYC is more logic based.