Archax, an upcoming institutional-grade crypto exchange, today announced a partnership with Custom House Global Fund Services to perform Know Your Customer (KYC) and Anti Money Laundering (AML) checks on firms and professional investors wishing to join and trade on the Archax exchange. These checks will also be performed on all entities wishing to participate in Archax’s forthcoming Security Token Offering (STO).
The activities that Custom House will perform for the Archax exchange will include: legal entity checks, identifying beneficial owners/controlling persons and terrorist/political screening. All checks will be performed prior to participants being accepted to trade and then on an ongoing basis.
“Coming from the hedge fund industry, we realize how important it is for institutions and their clients to know exactly who their trading counterparties are, as well as exactly where funds have come from. Regulations are very strict in this area and the existing crypto space simply doesn’t operate in the way that these firms both need and expect. We are very pleased to be working with such a strong partner as Custom House, as I know it will give firms the comfort they need that checks being performed are of the highest institutional standard. This partnership will also help differentiate us from other venues in this space.”
Most existing crypto trading venues have primarily targeted the retail space and lack the systems, controls, processes, and transparency that institutions look for. The Archax exchange has been designed with these institutions in mind and will legitimize and evolve the new digital asset marketplace for them by adopting best practice regulatory, compliance and operational principles. Key to this is all exchange participants will have to go through a comprehensive set of KYC and AML checks that Custom House is known for and perform widely for the finance industry globally already.
“Performing KYC and AML checks, as well as many other fund administration, compliance, and regulatory tasks, is the lifeblood of what we do for our clients operating in traditional markets all over the world. We have been looking at ways to broaden our services, and the crypto space is of interest to us as it presents a unique and exciting opportunity. Working with Archax, who know the crypto and traditional investment spaces well, and understand how institutions need to operate, gives us precisely the route and partner we need to expand into this new market.”
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