The nature of Our business
In order for us to understand why compliance is important, we need to get to the heart of what it is that we do as a company. Basically, we sell cryptocurrency (an unregulated and largely anonymously purchased currency) to random people over the internet. This is full of risk. At the same time, we are required by certain regulators to fulfill certain requirements. If we fail to do so this could threaten our licensing or lead to large fines and even jail time! To learn more about Regulation please see the dedicated article
KYC and Coinmama
We don’t know exactly who we are selling to and what they aim to do with this currency. Therefore we need to know more about our customers and why we need a compliance department. Through compliance, we identify and validate our customer's identities and can fulfill the KYC requirements of our regulators and the rules of the countries in which we operate. Therefore, the importance of reviewing, declining and approving client profiles is a serious and highly important matter, that doesn't leave any room for mistakes or non-professionalism. Ultimately this adds to the legitimacy of Our Company.
The more customers buy from us, the higher the associated risk. Because of this increased risk, it is important that we know more about our customers. Customers are required to provide us with different documentation depending on the amount of money they are exchanging. As a result, we have different verification levels.
KYC and Risk Factors
In compliance, we also must pay more attention to the country our Customers are from or are currently in. Some countries have a greater risk level than others. So, we cannot handle all countries equally. For example, you wouldn’t handle someone buying from the UK in the same way you would people from Syria. For more information about the different way we handle different countries, please see our article on Blocked Countries. If we were to treat sanctioned or blocked countries in the same way we would non-sanctioned countries, we would be facing some serious consequences.
So, it is because of these risks that compliance is very important to Our Company
Having a compliance department, with set compliance rules and KYC requirements, allows us to have a standardized handling procedure. This means that our procedures are universal and we handle application and document review in a uniform way that conforms to the rules outlined by our regulators. By doing so we avoid varied and contradictory reviews. Having this law and order limits the number of mistakes and mishandlings, and ultimately benefits the company by upholding its legitimacy. Standardised practice allows us to be regulated and hold legitimacy but also allows us to be transparent because our operational rules are clearly defined.