Regulatory compliance is a key step toward the global adoption of the digital asset space, and a top priority at VeVe.
The regulatory landscape surrounding NFTs is constantly evolving, and with the growing interest in this space over the past 12 months, NFTs are receiving increasing focus from regulatory authorities. These regulatory authorities are responsible for administering anti-money laundering (AML) regulations which can apply to virtual assets such as NFTs.
In order to maintain compliance, peer-to-peer Gem transfers have now been disabled within the VeVe app, and know-your-customer (KYC) procedures will also be introduced, both of which create a fairer and more democratic experience for our VeVe collectors.
What is AML/KYC?
Regulatory compliance is a key step toward the global adoption of the digital asset space, and with international stakeholders and a global audience, this is a top priority for us at VeVe.
Anti-money laundering (AML) regulation requires companies that offer certain products or services to implement and maintain reporting standards and practices that monitor and guard against money laundering, fraud, and anonymity.
Know Your Customer (KYC) is a process used to verify the identity of customers and forms an important part of AML compliance.
Gem transfers have been disabled as of March 24, 2022. While we appreciate that many users utilized gem transfers for legitimate reasons, it is also an avenue that could be used by bot users, fraudsters, and other nefarious actors to further their illegitimate activities.
In our efforts to pro-actively contain and remove these users, and remain compliant with AML regulations, we have decided it is in the best interests of VeVe and the community as a whole to turn off the ability to transfer gems.
In a further effort to squander illegitimate activities on VeVe, we have also temporarily disabled collectible transfers between accounts. This came into effect on April 1, 2022, and will remain in place until KYC has been fully implemented.
In addition, after suspected bot accounts are fully investigated and/or disabled, any associated active Market listings from these accounts will be added to a queue for nightly removal.
VeVe will be implementing a “Know Your Customer” (KYC) process for all users. We will be working with a leading global KYC provider who uses the latest technology to provide a quick, efficient process to verify the identity of legitimate users and detect fraudsters at the same time.
KYC will be necessary for both current and new VeVe users. We will give you plenty of notice ahead of the update going live, including which information you will need to submit, and when/where KYC is actually required.
Introducing KYC is a necessary step to future-proof our business, enable the Payout feature for all users, and meet the expectations of our ever-growing list of brand partners, and of course, the #VeVeFam!
We are aware that not all platforms in our industry currently require KYC. We cannot comment on individual situations, however, we are expecting regulation to only get tougher globally, and for these practices to become commonplace.
For our VeVe collectors, KYC will also have the benefit of helping to eliminate fake/scam accounts, and improving the collecting experience for all of our users. We appreciate your understanding as we continue to build the foundations for a lasting business.
As per the VeVe Terms of Service, we do not approve of, arbitrate, or offer any assistance for transactions that take place ‘off-app.’ Any transactions that are made outside of the VeVe platform are made at your own risk, and if they are found to violate VeVe Terms of Service you may be subject to account restrictions, and in some cases permanent disablement.