A white label exchange should have a clear restricted-jurisdiction policy before accepting users. The exact restrictions depend on the countries where the business operates and the regulations that apply to it.
A practical approach is to:
- Block restricted locations: Use IP/geolocation checks and prevent access where services are prohibited.
- Verify residency: Don’t depend only on IP addresses. Collect and verify identity, address, nationality, and other KYC information.
- Screen users and transactions: Check customers and relevant transactions against applicable sanctions lists and monitor for suspicious activity.
- Prevent VPN circumvention: Use appropriate controls to identify attempts to bypass geographic restrictions.
- Handle existing restricted users carefully: Restrict trading or account functionality according to your legal obligations and documented procedures rather than making arbitrary decisions.
- Keep the list updated: Sanctions and jurisdictional restrictions can change, so compliance policies need regular review.
The white label crypto exchange software provider can supply the technical controls, but the exchange operator is still responsible for making sure those controls match its legal and regulatory obligations
A practical approach is to:
- Block restricted locations: Use IP/geolocation checks and prevent access where services are prohibited.
- Verify residency: Don’t depend only on IP addresses. Collect and verify identity, address, nationality, and other KYC information.
- Screen users and transactions: Check customers and relevant transactions against applicable sanctions lists and monitor for suspicious activity.
- Prevent VPN circumvention: Use appropriate controls to identify attempts to bypass geographic restrictions.
- Handle existing restricted users carefully: Restrict trading or account functionality according to your legal obligations and documented procedures rather than making arbitrary decisions.
- Keep the list updated: Sanctions and jurisdictional restrictions can change, so compliance policies need regular review.
The white label crypto exchange software provider can supply the technical controls, but the exchange operator is still responsible for making sure those controls match its legal and regulatory obligations