The evolution of the compliance function and emerging compliance risks
Wharf Street Financials (WSF), a unique P2P exchange in the blockchain space, has so far emerged as one of the most promising exchange platforms bringing you the ability to instantly and seamlessly trade Bitcoin and altcoins at the best rate. WSF serving as the one-stop solution for all investment needs providing sound, proficient, and striking capital market products and services set to deliver superior value the market participants and stakeholders at lucrative cost.
In this context, we will be going through the four subsections that are very important on behalf of compliance and risk management model that has grown significantly in the past few years, to an extent where conversations about compliance inevitably involve discussions of risk.
1) Products offered for trading
The product being offered by us over our platform is a digital currency, which is listed after rigorous verification by our team to avoid any fraud and promising the legitimacy. We perform due diligence before listing any digital currency, assuring that only legitimate digital tokens are approved over our exchange platform. Further, in order to make our practices more transparent, we allow only those Businesses and individuals in the business of trading in or advising on securities that are registered with us or rely on an exemption from registration.
2) Platform operations
On behalf of WSF, we make sure that the exchange platform come up as a marketplace as defined in National Instrument 21–101 Marketplace Operation, constituting as a clearing agency as term is defined in 1(1) of the British Columbia Securities Act providing centralized facilities through which trades in securities or exchange contracts are cleared and further come up as a depository of securities promising that.
• Our exchange brings buyers and sellers together.
• Our exchange serves as one place for the orders for securities of multiple buyers and sellers.
• Our exchange acts as a dealer which executes a trade.
3) Subscriber access
We agree to the acceptance of the entire legitimate digital token around the globe to trade at our exchange. So everyone around the world will be able to have access to the platform after competing with our KYC compliance without being bounded by any sought of limits. We are currently preparing a list of the countries where residents may not be able to access our exchange platform countries like India where trading in digital currencies is still an illegal and total ban. It’ll be challenging for us to bring our services to such economies. Further, we will generate the list of such countries and submit it before our launch. So, till that time we can a proper record of restricted countries.
The WSF exchange platform is a P2P exchange for Digital Token serving simply as a platform with which one can easily buy, sell and trade digital asset but legally no recommendations nor any advice for trading or otherwise anything of that nature is provided by the platform. Further, as far as KYC is concerned, we are availing the services of Hello Soda! for reviewing our KYC. However, to speed up the KYC procedures, we may add up to 3 KYC reviewing a company at our exchange, assuring that only legitimate users will be allowed to onboard to our exchange.
4) Fee structure and working mechanism of the WSF exchange.
Customer satisfaction has always been our priority, so to let our customer enjoy all the benefits, we will be promoting products for our partners to make the platform more interactive and user-friendly. Digital education package on trading will together help us build confidence among early digital currency investors. Further, we are a partner with the Money Globe, that is our remittance partner helping us to come up as a payment solution platform for cross-border remittance at noticeably reduced cost and speedy transactions.
Beyond this, many of you might be wondering, how does the exchange platform work? So, let’s understand the working:-
The whole working mechanism is quite simple to understand when someone makes a purchase of a digital asset from the exchange platform; the amount gets transferred into a digital wallet provided by the platform. This amount is further made available to the subscriber for withdrawing and moving into the personal cold storage wallet or even sends them to another wallet on a different exchange. As far as the processing time is concerned, there is a short period of time is involved. Suppose, if someone deposit fiat currency (CAD or USD) then one is not allowed to withdraw any currency (digital money or Fiat) from the exchange wallet until the withholding period is completed which is 3 days from the day one make the deposit. Once that period is completed, the withdrawal is processed on that same day.
Further, to make the mechanism more versatile and secured, we usually provide separate wallets for all users on the platform and store 95% of the coins in Cold storage and the remainder 5% is stored over the exchange platform for liquidity. Since every user trading over the platform owns a particular wallet address it would work like this: Suppose User A decides to send Bitcoin to User B. In this case, User A would go into their Bitcoin Wallet over the exchange and submit a withdrawal request and input User B’s Bitcoin wallet address as the destination. User B can obtain their wallet address under the section “Our Exchange Name” account by clicking deposit on any of their wallets.
On behalf of security, we take due care of the user end security, in the case when the instructions are failed to be delivered to the exchange, the platform firstly transfers a particular asset (Fiat/ Currency) to subscriber’s Wallet. Then upon the instructions of the subscriber, we will proceed with cash settlement, which can be Fiat or digital currency. Following a basic methodology, in which the Fiat deposits and withdrawals are done via Email money transfer or Wire transfer. Further, there are no real limits for deposits or withdrawals, anyone can send wire transfers up to a certain limit, and if someone needs to do more, in that case, it is forwarded to the concerned account manager. Further, in the case of fiat withdrawals, this will be done via EFT or Wire transfer depending on the size of the transaction. During this whole transaction process, we maintain a track record of ALL transactions that are done over the platform. This information is available publicly as well on any Blockchain explorer while ensuring that the identity of both the parties is kept confidential. For example, over the Blockchain, one can easily observe Wallet A sent Wallet B 10 Bitcoin” but, cannot predict the information about the valid owner of the Wallet A or B.
Hence, compliance is an essential part of the overall build-up in any organization. Since we are yet a step away from the official launch; we aren’t registered with any regulatory body. However, in the near future, we’ll get registered with the leading regulatory authorities, namely, Fintrac in Canada, FCA in the UK and SEC in the USA.
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