Compliance as the key to cryptocurrency adoption
There are several reasons why, at Young Platform, compliance with local regulations is the top priority. It is not only a question of ethics and respect for the law, but above all of user protection, which in turn must be the very purpose of financial laws.
Furthermore, we believe that regulation is the key to the mainstream adoption of cryptocurrencies, and that the first step in this direction is the harmony between crypto players and their reference legal system from the outset.
The events of the last year underline this message more than ever: the failures of Terra-Luna and FTX are certainly not the result of virtuous behaviour. While some regulators are particularly alert and wary of cryptocurrencies, the responsibility for proving that there is no reason for this lies with those who work in the industry.
From day one, Young Platform has always put compliance first, with a collaborative attitude towards regulators and law enforcement in defining and controlling a new sector like cryptocurrency in the Italian and French markets. Our Anti-Fraud and Anti-Money Laundering team continues to develop up-to-date solutions to manage the risk of financial crime, with a specialisation in blockchain.
This commitment can be seen, for instance, in the procedure required by law from all exchange users: the Know-Your-Customer, i.e. the Identity Verification managed through specialised providers.
User protection also concerns the service itself, which is why no cryptocurrency derivatives or other high-risk trading instruments such as leverage are offered on the exchange. In addition to this, all the educational resources necessary to use the service and explore the sector with awareness are provided, both to protect one’s own accounts, to properly guard one’s funds, and above all to avoid scams that exploit the cryptocurrency trend. A section of the official website is also dedicated to frequently asked security questions for users of our products.
Not only that, Young Platform was the first company to be registered with the Italian Organismo Agenti e Mediatori (OAM), an obligation that came into force in January 2022 following an enactment by the Italian Ministry of Economy and Finance.
Also when entering the French market, the first step was to obtain registration as an operator of digital asset services (Prestataire de Services sur Actifs Numériques, or PSAN) under number E2022-60 from the French Financial Markets Authority (AMF).
These practices, unfortunately, are not a given: even basic information such as the registered headquarters is not always known in the industry. In the case of Young Platform, this is public information, available on any page of the official website. Overall, our legal documents can be found at this link: https://youngplatform.com/en/legal/.
However, the contribution of exchanges is not enough. The road to mass adoption requires the joining of all forces: if service providers need to be compliant, their customers must use them legally. This scenario requires in turn that governments work on legislation that favours both financial freedom and investor protection.