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Lawyers for KYC Blockchain & Cryptocurrency Compliance

Experienced KYC Blockchain and Cryptocurrency Compliance Team

Do you operate a blockchain business and are worried about know your customer (“KYC”) checks? Are you curious as to how to implement KYC checks for cryptocurrency transactions? Do you need to strengthen your KYC policies? If so, then you need the advice of an experienced KYC blockchain and crypto compliance attorney.

Billions of dollars are stolen each year through cryptocurrency exchanges. Failing to have AML and KYC policies and procedures or failing to have strong AML and KYC policies and procedures contribute significantly to this amount.

KYC policies and procedures aim to prevent theft and crime within a business by ensuring that the company is only doing business with individuals that pass certain identity verification checks.

The federal government has expressed an increased awareness and willingness to go after online exchanges and companies without KYC policies or with substandard KYC policies. Do not let this happen to you without a fight.

At Oberheiden, P.C., we have an experienced and dedicated group of KYC attorneys and consultants. Our team is experienced in applying various KYC issues to blockchain companies and companies that deal with cryptocurrencies.

Take the first and proper step towards compliance. Put Oberheiden, P.C. on your side today to boost your compliance and reduce your liability exposure.

Put our highly experienced team on your side

Dr. Nick Oberheiden
Dr. Nick Oberheiden



John W. Sellers
John W. Sellers

Former Senior Trial Attorney
U.S. Department of Justice

Local Counsel

Joanne Fine DeLena
Joanne Fine DeLena

Former Assistant U.S. Attorney

Local Counsel

Joe Brown
Joe Brown

Former U.S. Attorney & Former District Attorney

Local Trial & Defense Counsel

Amanda Marshall
Amanda Marshall

Former U.S. Attorney

Local Counsel

Aaron L. Wiley
Aaron L. Wiley

Former Federal Prosecutor

Local Counsel

Roger Bach
Roger Bach

Former Special Agent (OIG)

Michael Koslow
Michael Koslow

Former Supervisory Special Agent (FBI)

Chris Quick
Chris Quick

Former Special Agent (FBI & IRS-CI)

Kevin M. Sheridan
Kevin M. Sheridan

Former Special Agent (FBI)

Ray Yuen
Ray Yuen

Former Supervisory Special Agent (FBI)

Dennis A. Wichern
Dennis A. Wichern

Former Special Agent-in-Charge (DEA)

A Premier on KYC Policies and Procedures

KYC is the process of identifying and verifying customers before allowing them to use or take advantage of the company´s platform.

This is critical with cryptocurrency transactions since many crypto transactions involve or offer anonymity, speed, and little or no transaction costs—a prime breeding ground for criminal activity.

The purpose of KYC policies and procedures is to ensure that the company is dealing only with individuals and entities that are low risk. At the same time, it prohibits unqualified, sanctioned, or prohibited individuals and entities from trading on the online exchange.

KYC policies and procedures are established by both national and international regulations in order to prevent money laundering and the financing of terrorism.

It allows companies to basically root out high risk individuals that pose a high threat of money laundering and/or terrorism financing.

Regulatory Landscape

Operating a cryptocurrency exchange or ruining a blockchain company is legal in the United States. That said, various federal agencies impose numerous requirements and obligations on these companies to ensure that it truly knows all its customers and that such customers present very minimal risks.

Cryptocurrency transactions are regulated by the following federal agencies:

  • The Securities Exchange Commission (“SEC”);
  • The Commodities and Futures Trading Commission (“CFTC”);
  • The Financial Crimes Enforcement Network (“FinCEN”);
  • The Federal Trading Commission (“FTC”);
  • The Internal Revenue Services (“IRS”);
  • The Office of the Comptroller of the Currency (“OCC”);
  • The Federal Bureau of Investigation (“FBI”); and
  • The Department of Justice (“DOJ”).

Typical regulatory requirements include obtaining a license from FinCEN to operate as an exchange or money transmitting business; using AML/KYC checks; implementing an AML Compliance Program; filing suspicious activity reports; and complying with various reporting and recordkeeping requirements.

If you have questions about how your business implicates the regulatory authority of any of the above federal entities, give our team a call today.

Using and Implementing KYC Policies and Procedures

Each year, online crypto exchanges, mining companies, and blockchain-dependent companies are becoming more and more like non-bank financial institutions (“NBFIs”).

Because of this, these companies need to ensure that they develop and implement KYC policies and procedures into their operations. Because these entities are typically classified as NBFIs, their KYC policies and procedures will be implemented into their AML Compliance Programs.

In the United States, FinCEN regulates these online exchanges under the Bank Secrecy Act (“BSA”) and requires them to carry out KYC policies and procedures as well as to implement effective and comprehensive AML measures.

Generally, KYC policies and procedures will ask for the customer´s personal identifiable information such as their full name, date of birth, and address—which is then verified against government-issued documents such as a driver´s license or passport.

Verifying the address will usually ask for the customer´s current address and proof of address such by asking the customer to upload their latest utility bill.

Once the company has such information, the verification process is “pending.” The company will check the customers´ details against international sanctions list and check for other red flags.

Once a detailed assessment can be made about the customer and the company is assured that there is a low risk of crime, money laundering, and other cryptocurrency-related risks, the customer is approved.

If the customer identification process is not approved, the customer will typically be asked to upload other documents or will be prohibited from using the company´s services.

Importance of KYC Compliance

In addition to implementing KYC policies and procedures because it is a legal requirement, there are various additional benefits of doing so. Below are just a few:

  • To foster and enhance the degree of trust individuals place in the system when dealing with online exchanges and blockchain companies as well as when engaging in cryptocurrency transactions;
  • To prevent and reduce the risk of financial crime by refusing to allow high-risk individual to use the company´s products and services;
  • To demonstrate to federal agencies that companies have the intention of following the law and assessing current/possible risks;
  • To ensure that the company is conducting thorough risk assessment procedures based on their legal, regulatory, and compliance environments;
  • To prevent serious fines and penalties from being imposed on your company for noncompliance with AML/KYC regulations; and
  • To help encourage mass public awareness and adoption through strong KYC checks.

Our team can help you design and implement effective KYC policies and procedures to achieve these end goals. Give us a call today to discuss your case and KYC policies and procedures for your company.

KYC policies and procedures are constantly evolving based on the volatile nature of cryptocurrencies, market demand, increase in blockchain companies and online exchanges, and so on.

It is critical for companies to stay one step ahead of the federal government and ensure that every customer they accept or deal with has successfully passed various KYC checks and presents little or no risks of money laundering and terrorism financing.

Compliance is everything. It can mean the difference between the loss of billions of dollars for companies. It can also prevent or mitigate the consequences of a federal investigation.

If you need assistance on KYC blockchain and cryptocurrency issues, contact us today.

At Oberheiden, P.C., we have the team, resources, and passion to evaluate your company, assess its risk exposure, outline the regulatory requirements applicable to it, and design effective KYC policies and procedures.

Do not wait to get the compliance advice you need. Call or contact us today for a free and confidential consultation.

Why Clients Trust Oberheiden P.C.

  • 1,000+ Cases Handled
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  • Experienced Trial Attorneys
  • Former Department of Justice Trial Attorneys
  • Former Federal Prosecutors, U.S. Attorney’s Office
  • Former Agents from FBI, OIG, DEA
  • Cases Handled in 48 States
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