Do you really know your customers?

Do you really know your customers?

In the wake of recent ‘regulatory entanglements’, cryptocurrency exchanges Bitfinex and Bittrex appear to be revising their approach to vetting their customers.Both exchanges, which are being closely looked at by the New York Attorney General and the New York Department of Financial Services (NYDFS) respectively, are requesting further information from clients who have already transacted. There have been indications to suggest that Bitfinex has been locking users’ accounts while it probes for more information.

This course of action is very concerning for many reasons; not least because of the inconvenience to customers but the general idea of KYC being treated as an afterthought. Additionally, Bittrex have “denied the credibility of the findings” rather than take the step of issuing an unequivocal denial in relation to the challenge from the NYDFS that they transact with users from sanctioned nations. Further questions will surely be forthcoming.As a regulated company, it is a fundamental requirement that we know our customers - and we take our responsibilities seriously.

From identity checking to assessing appropriateness, anti-money laundering to counter-terrorism financing, Torca have in place systems and controls that allow us to meet our regulatory obligations and take legal responsibility for both KYC and AML. Our risk-based approach is built from UK Anti-Money Laundering and Counter Terrorist Financing legislation, sector rules and independent legal guidance - so issuers and investors alike are expertly assessed and verified.

Strong KYC and AML procedures create a foundation that will support and stimulate the growth of the sector, whilst helping create a more secure, open and transparent financial universe for businesses and individuals.

Find out how Torca can help with your onboarding challenges – email James Smith at