The Importance of Cryptocurrency Compliance in Payments

Regulations in the crypto payments industry

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The Importance of Cryptocurrency Compliance in Payments

The legal landscape surrounding the crypto payments industry remains relatively new and evolving, striving to establish best practices that ensure the well-being of all stakeholders and eliminate illicit activities, thereby shedding negative associations. Companies venturing into the crypto realm must prioritize compliance with relevant regulations. In instances where clear legislative guidelines are absent, they should draw from successful precedents and best practices, while consistently prioritizing user security.

This is precisely how GoCrypto has paved its path – by aligning its business operations with regulations and fostering trust and dependability within the cryptocurrency payment domain. By adhering to these principles, GoCrypto has highlighted its commitment to fostering a secure and reliable crypto payment ecosystem.

Compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations

The Slovenian AML law has been in force for all crypto-related businesses since 2016. GoCrypto, established in 2017, capitalized on this foresight, constructing its GoCrypto solution in compliance with AML and CTF standards. Even when the mandatory 5th AML Directive was enforced in January 2020, GoCrypto remained unimpeded due to its constant regulatory alignment since its foundation.

To ensure compliance, GoCrypto built an internal AML system. This strategic move facilitated a strong client rapport while granting full control over AML processes. The carefully structured system adapts quickly to regulatory changes, thanks to its comprehensive coverage of AML facets and seamless integration. Notably, while leveraging certain 3rd-party tools, GoCrypto's core AML framework (KYC and KYB) was developed in-house.

Read more about GoCrypto’s AML and CFT compliance in our blog: GoCrypto Ensures Full Compliance With The Anti-Money Laundering And Counter Terrorist Financing Legislation

GoCrypto is a registered Virtual Asset Service Provider (VASP)

GoCrypto is officially registered with the Office for Money Laundering Prevention of the Republic of Slovenia as a Virtual Asset Service provider (VASP) or to put it into more technical terms as a provider of exchange services between virtual and fiat currencies, as well as a provider of custodian wallets. This registration signifies that GoCrypto is responsible for implementing measures to detect and prevent money laundering and the financing of terrorism.

GoCrypto Token

We introduced the GoCrypto (GoC) token in 2018 to facilitate user engagement and fund the development of our services through generated proceeds. This token served as a utility. Prior to launching the token, we reached out to relevant regulatory bodies and received no objections; at that time and with the regulatory framework available, this was the best possible outcome. To ensure legality, we followed advice from external legal experts throughout the process. This careful approach has shielded us from legal impediments.

Compliance with ISO 27001 and 9001 Standards 

GoCrypto proudly maintains the ISO 27001:2013 certification for Information Security Management. This framework emphasizes a comprehensive approach to safeguarding information security – encompassing people, policies, and technology.

Moreover, GoCrypto also holds the ISO 9001:2015 certification for Quality Management. This attests to our strict compliance with all standards for a quality management system. It showcases our capacity to consistently deliver products and services that align with both customer expectations and relevant legal obligations. 

Intellectual Property Protection

We've consistently made safeguarding our company's intellectual property a top priority. We carefully manage the distribution and protection of all forms of intellectual property within the organization, including all knowledge, technology, code, content, design, and more.

In pursuit of this goal, we've also obtained trademarks that are strategically important to us across various geographic regions. Notably, one of our trademarks is "Bitcoin City," a concept that has already materialized in certain markets and continues to flourish in others, as we pioneer the creation of cutting-edge urban hubs.

License Applications and External Assessments

GoCrypto diligently pursued licenses across key markets to expand and enhance our services. However, due to the absence of established legal frameworks and analogies, these applications face ongoing processes or, in some cases, unwarranted oppositions due to reasons that can only be linked to the novel and uncertain nature of crypto payments.

In Switzerland, GoCrypto has formed an affiliation with the self-regulatory body SRO PolyReg, officially recognized by the Confederation for overseeing financial intermediaries within the association. This partnership attests to GoCrypto's rigorous adherence to relevant legal frameworks.

Our self-evaluations, along with oversight from relevant regulatory bodies, have yielded a clean record, reflecting our adeptness in this dynamic landscape, where issues often arise. Compliance is of paramount importance, and our commitment to it has been instrumental in our sustained success.

We remain steadfast in this commitment, building upon our compliant practices, assembling a proficient team, and embedding the value of compliance. While acknowledging that this approach has occasionally posed challenges to our operations, we have navigated internal conflicts and tailored our strategies accordingly. We are pleased that our unwavering dedication to the right path has led us forward without compromises. Our legal team stands resilient and resolute.

Compliance Knows No Compromises 

GoCrypto established its crypto payment network long before the implementation of regulations like Markets in Crypto-Assets (MiCA). Our team served as pioneers, forging a path toward defining clear legal requirements for crypto payments. We engaged in discussions with external legal firms, regulators in our target markets, our national regulatory body, and other companies operating in the same industry during that era. At that time, definitive rules were absent. 

Our expansion was occasionally difficult due to partners' concerns regarding the legal uncertainties. Given the absence of established regulations, we operated as trailblazers in our field, seeking to find a legal and ethical path for offering our services. This endeavor was a complex one, as we often encountered more questions than answers. In the absence of local guidance, we sought assistance beyond Slovenia, tirelessly searching for a viable route. 

In retrospect, the landscape has become more accommodating due to frameworks like MiCA. However, in the initial stages, challenges were formidable. We constructed our own operational rules, drawing inspiration from related fields, to establish at least a foundational framework. While legal uncertainty still exists, it has diminished compared to earlier times. The fact that we have persisted through these challenges while witnessing many other crypto companies falter due to various regulatory issues, stands as a testament to our commitment and competence in navigating this complex terrain effectively.

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The Importance of Cryptocurrency Compliance in Payments
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