Background

As the world of Cryptocurrency is changing and becomes more advance, governments around the world have become more vigilant in trying to regulate Digital Currency transactions.

In recent months, we have seen numerous countries amended a directive on preventing money laundering and terrorist financing that will require cryptocurrency exchanges and wallets to identify suspicious activity, a directive that would include identifying bitcoin and other Anonymous Cryptocurrency users.

Entities engaged in exchanging between virtual and fiat currencies are required to carry out customer due diligence (also known as KYC), monitor transactions and report suspicious transactions.

While Virtual currency to virtual currency exchanges is still not regulated at the moment (for example, Bitcoin-to-Ether exchanges), it is the responsibility of each entity/ company to perform sufficient due-diligence to ensure its operational compliance with KYC and AML requirements.

Depending on each situation, failure to comply with KYC and AML requirements could result in severe penalty, suspension of license or, in extreme cases, prison time for the perpetrators.

SocialX

As SocialX is about to embark on ICO (Initial Coin Offering) in the upcoming month, SocialX is fully intent to be 100% compliant with KYC and AML requirements. This will provide assurance to our Contributors in the transparency of our internal processes and sustainability of our operations.

SocialX intends to engage 3rd Party Provider (approved by MAS) in obtaining comprehensive data covering more than 1.5 million entities in 240 countries and territories.

Using the 3rd Party database, SocialX will conduct due diligence and investigation activities during the engagement/ contribution of our ICO and future businesses. This will allow SocialX to identify potential risks to the Company and mitigate the risks prior to any audit/ investigation by MAS.