The rapid development, evolvement and growing adoption of blockchain and cryptocurrency platform service providers pose significant challenges for regulators to ensure that these services are not being misused for money laundering and financing of terrorism.
Due to these potential risks several regulatory bodies around the world are planning to introduce stricter regulations for service platform providers like Artano.
How come Artano needs KYC?
Artano was founded in Estonia, Europe, as a Limited Liability Company and runs its NFT related services from data centers located in the EU. As such Artano is held to European regulations which are binding across the EU.
In order to build a sustainable business towards the future, we have to protect ourselves and our customers against illegal activities.
Given that directives within the EU are implemented differently between different jurisdictions, we consulted with a legal advisor in Estonia specialized in this area.
As an LLC residing in Estonia Artano is required to:
- implement KYC for its first few NFT auctions. Since Cardano does not have smart contracts yet, the ADA used for buying NFTs will touch our wallet first, before the NFT is distributed to the buyer and the funds are send to the seller. Because of this Artano is required to collect the identity information of its users (buyers and sellers).
- be compliant with upcoming anticipated regulatory changes. Further new regulatory proposals related to NFT marketplaces operating within the EU are going to be enforced in the near future. As a fully compliant company, we want to be prepared for these upcoming regulatory changes from the first day of running our business.
For KYC there are two important regulations to follow:
- GDPR (General Data Protection Regulation), https://gdpr-info.eu/
- AML (AML5 and its predecessors), https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32018L0843
KYC and AML partnership
Artano partnered with GetID https://getid.ee/, a professional provider of KYC and AML solutions.
The KYC and AML solution of GetID will be integrated in the services we provide to comply with the Estonian law and EU regulations regarding auctions and marketplaces.
How safe is your personal data?
Artano will never collect and store your personal data other than via its specialized KYC and AML partner who is held to the most strict data protection regulations worldwide.
Neither Artano nor its specialized KYC and AML partner will use this data for any other purposes than verifying your identity. This also means that your data is not sold or shared with any other 3rd party, including any government entity.
Only on the occasion that the Estonian government or European regulators suspect that illegal activities are taking place on our services (and they can substantiate this with evidence) are they allowed to request your personal data. Otherwise your data stays safely stored out of any government’s reach.
Why is Artano held to these requirements?
Artano is an NFT marketplace providing its users with the possibility of buying and selling NFTs. For these services Artano is charging fees on every sale of an NFT: 5% on the primary sale and 2.5% on secondary sales.
Regulators require platforms like Artano to provide transparency on request about the money that flows in and out of our platform since this money could come from illegal activities or support financing of terrorism.
To be more specific, there are three main reasons why regulators might need to request this information from Artano:
- To be able to detect and avoid any illegal activities by Artano and/or its artists to protect retail investors (NFT collectors)
- To be able to detect that the Artano services are not misused by malicious parties for money laundering
- To avoid terrorism financing
We hope you will join Artano’s first regulated and EU-compliant NFT auctions starting at the end of July 2021 and our full marketplace, once it’s released with full smart-contract functionality.