Marketexchange.io has implemented a comprehensive Anti-Money Laundering (AML) and Know Your Customer (KYC) policy to prevent its services from being exploited for illegal purposes, including money laundering, terrorism financing, or other financial crimes. This policy aligns with global regulations and local legal standards.
Purpose and Scope
The goal of this policy is to ensure that marketexchange.io operates transparently and responsibly by identifying, monitoring, and reporting any potentially unlawful activities. All transactions conducted through marketexchange.io are subject to this policy, which applies to every user and service interaction.
Verification Measures
- Client Identification:
- Collect full name and date of birth of the user.
- Validate identity using official government-issued identification.
- Confirm the user’s residential address with supporting documents such as utility bills or bank statements.
- Document Examination:
- Ensure submitted documentation is authentic and accurate.
- Cross-reference user data with international watchlists and sanction databases.
- Transaction Monitoring:
- Conduct ongoing reviews of transactional behavior to detect anomalies.
- Use a risk-based approach to prioritize potentially suspicious transactions.
Risk Scoring and Transaction Suspension
MarketExchange applies a risk-based AML scoring model to every cryptocurrency transaction using blockchain analytics and compliance screening tools.
A transaction may be suspended and placed under compliance review if:
- the AML risk score exceeds 40%;
- blockchain analytics identify any high-risk exposure or labels, including but not limited to:
- Dark Service;
- Scam;
- Stolen Funds;
- Mixer / Mixing Service;
- Ransomware;
- Hack;
- Phishing;
- Terrorism Financing;
- Fraud;
- Blacklisted Address;
- Under Investigation;
- Cybercrime Organization;
- Narcotics;
- Human Trafficking;
- Child Abuse;
- Sanctions;
- Gambling;
- or any other high-risk category identified by the Company’s compliance provider.
In addition, a transaction may be suspended if:
- requested by the Company’s liquidity provider or compliance partner;
- requested by a competent regulatory or law enforcement authority;
- suspicious activity is detected during transaction monitoring or customer due diligence;
- the transaction originates from or is connected with sanctioned exchanges, mixers, darknet services, or other prohibited platforms.
Suspended transactions remain on hold until the required AML/KYC verification has been successfully completed. MarketExchange reserves the right to request additional documents confirming the identity of the customer and the lawful origin of the funds.
Handling Suspicious Activities
If a transaction or user activity raises suspicion, marketexchange.io may:
- Temporarily suspend the transaction pending further investigation.
- Request additional information from the user to verify legitimacy.
- Notify appropriate regulatory authorities when necessary.
Examples of flagged activities include:
- Use of cryptocurrency mixing services or anonymizing tools.
- Transactions involving entities or individuals subject to sanctions.
- Transfers linked to fraudulent schemes or hacking incidents.
KYC Documentation Requirements
Users flagged for review must provide:
- Details on the origin of funds, with screenshots and transaction links.
- Purpose of the transaction and intended recipient information.
- Proof of communication with involved parties verifying the transaction’s legitimacy.
- A valid photo ID and a selfie with the ID and a handwritten note showing the current date.
Failure to provide requested documents within the specified timeframe may result in transaction cancellation or permanent asset freezing.
Responsibilities of AML Officers
Designated AML officers are tasked with:
- Reviewing and monitoring daily transactions.
- Investigating and documenting suspicious activities.
- Reporting findings to relevant authorities as per legal requirements.
Data Privacy and Retention
All information collected during the KYC process is securely stored and accessible only to authorized personnel. Data retention complies with the durations specified by applicable regulations.
Additional Fees and Refunds
Transactions identified as high-risk may incur an additional fee of up to 5% to cover the costs of enhanced due diligence. Refunds for frozen assets are processed only after successful KYC verification.
User Support
For assistance with transaction inquiries, verification processes, or to preemptively check for potential blocks, users can contact marketexchange.io’s support team via live chat.
Jurisdictional Restrictions (EU/EEA)
By using the Service, the User represents and warrants that they are not a citizen, resident or tax resident of the EU/EEA, are not located in the EU/EEA, are not incorporated or established in and do not act from the EU/EEA, and do not act in the interest of or on behalf of such persons. These representations are deemed to be repeated each time the Service is used.
As part of its risk-based compliance framework, the Company applies jurisdictional restrictions and does not onboard, accept or process transactions for users located in, resident in, incorporated in, established in or acting from the EU/EEA. The Company may use IP geolocation, blockchain analytics, customer declarations, device information, payment information, KYC data and support communications to detect restricted jurisdiction exposure. Where EU/EEA exposure is detected after a transaction has been initiated, the Company may suspend the transaction, request additional information, cancel the exchange, return funds where legally permissible, or retain/block funds where required by AML/CFT, sanctions, court order, law enforcement request or internal risk controls.
The Company may, at any time and without giving reasons, refuse access, suspend or block access, refuse to execute a transaction, and terminate the relationship with the User where indicators of a connection to the EU/EEA are detected (including by IP address, geolocation, payment attributes or verification data). The use of VPNs, proxy servers, anonymisers or any other means of circumventing territorial restrictions is prohibited and constitutes an independent ground for blocking and termination.
We process IP address, device information, approximate geolocation, transaction data, wallet addresses, blockchain analytics results and customer declarations for compliance, fraud prevention, sanctions screening, AML/CFT controls and enforcement of jurisdictional restrictions.
Amendments and Updates
Marketexchange.io reserves the right to amend this policy as required to reflect changes in laws or industry standards. Users are advised to stay informed about any updates to ensure continued compliance.
This policy underscores marketexchange.io’s commitment to ethical, secure, and lawful operations, ensuring trust and transparency for all users.