Regulatory
Velox's regulatory compliance framework, licensing status, jurisdictional coverage, and anti-money laundering policy.
This Regulatory page describes the compliance framework under which Velox operates. For the latest information on licenses, registrations, and regulatory developments, refer to this page.
1. Regulatory Philosophy
Velox is committed to operating in compliance with applicable laws and regulations in every jurisdiction we serve. As a non-custodial swap protocol, we occupy a specific position in the regulatory landscape — we facilitate peer-to-protocol asset exchange without taking custody of user funds, processing fiat currency, or providing financial advice.
Our regulatory approach is built on three principles:
- Proactive Engagement. We actively monitor the evolving regulatory landscape for digital asset services and engage with regulators where appropriate to ensure our operations remain compliant.
- Jurisdictional Integrity. We do not offer services in jurisdictions where doing so would violate applicable law. We maintain an up-to-date restricted regions list and enforce geo-restrictions at the infrastructure level.
- Transparency. We are transparent about our regulatory status, the licenses we hold, and the jurisdictions in which we are authorized to operate.
2. Licensing & Registrations
The following table summarizes Velox's current regulatory registrations and licensing status across relevant jurisdictions. This information is reviewed and updated quarterly.
| Jurisdiction | Regulator | Registration / License | Status | Reference |
|---|---|---|---|---|
| British Virgin Islands | BVI Financial Services Commission | Virtual Asset Service Provider (VASP) — Non-Custodial | Active | BVI-FSC-2025-0842 |
| Lithuania | Financial Crime Investigation Service (FCIS) | Virtual Currency Exchange Operator | Active | FCIS-VCE-3057292 |
| Estonia | Financial Intelligence Unit (FIU) | Virtual Currency Service Provider | Active | FIU-VC-2025-0291 |
| Poland | Ministry of Finance — Tax Administration Chamber | Virtual Currency Business Activity Registration | Active | RDWW-2025-1147 |
| Canada (FINTRAC) | Financial Transactions and Reports Analysis Centre | Money Services Business — Dealing in Virtual Currencies | Pending | Application M25310947 |
| Dubai (VARA) | Virtual Assets Regulatory Authority | Initial Approval — Proprietary Trading in VA | In Review | VARA-IP-2026-0221 |
Registration status and reference numbers are accurate as of the last-updated date above. Users should verify registrations directly with the relevant regulatory authority.
3. Anti-Money Laundering & Know-Your-Customer Policy
Velox maintains a comprehensive Anti-Money Laundering (AML) program designed to detect and prevent the use of our platform for money laundering, terrorist financing, sanctions evasion, or other illicit financial activity. Our AML program includes the following elements:
3.1 Blockchain Analytics & Wallet Screening. All wallet addresses interacting with the platform are screened in real-time against blockchain analytics databases that identify addresses associated with illicit activity, sanctioned entities, darknet markets, ransomware, and known fraud schemes. Wallets that match high-risk criteria are prevented from initiating swaps.
3.2 Transaction Monitoring. Swap transactions are monitored for patterns indicative of structuring, layering, or other suspicious activity. Unusual transaction patterns — including rapid successive swaps, circular transfers, or amounts just below reporting thresholds — are flagged for review.
3.3 Risk-Based Approach. Velox applies a risk-based approach to AML compliance. The platform's non-custodial, crypto-to-crypto-only model carries inherently lower money laundering risk than fiat on/off-ramp services. Where our platform is used as a component of a broader service (e.g., a regulated exchange integrating via our API), the AML obligations rest primarily with the regulated entity.
3.4 No Identity Collection. As a non-custodial swap protocol that does not handle fiat currency, Velox does not collect traditional KYC information (name, address, identification documents) from retail swap users. This approach is consistent with the regulatory treatment of non-custodial software protocols in our primary jurisdictions of operation.
3.5 Suspicious Activity Reporting. Where we identify transaction patterns that meet the threshold for suspicious activity, we file Suspicious Activity Reports (SARs) or Suspicious Transaction Reports (STRs) with the relevant financial intelligence units in our registered jurisdictions.
3.6 Designated Compliance Officer. Velox employs a designated AML Compliance Officer responsible for overseeing the AML program, conducting periodic risk assessments, and ensuring ongoing compliance with applicable AML/CFT regulations.
4. Financial Action Task Force (FATF) Compliance
Velox monitors and aligns its operations with the FATF Recommendations, particularly those applicable to Virtual Asset Service Providers (VASPs). Our compliance posture with respect to key FATF guidance areas:
| FATF Requirement | Velox Implementation | Status |
|---|---|---|
| Recommendation 15 — VASP Registration | Registered as a VASP in the British Virgin Islands and Lithuania. Additional registrations in progress. | Compliant |
| Recommendation 16 — Travel Rule | Originator and beneficiary wallet information is collected for transactions exceeding applicable thresholds. Data is transmitted via a Travel Rule Protocol-compliant messaging system. | Compliant |
| Recommendation 20 — STR Reporting | Automated transaction monitoring flags suspicious patterns. SARs/STRs filed with BVI FSC and Lithuanian FCIS as required. | Compliant |
| Recommendation 21 — Tipping Off | Internal policies prohibit tipping off. SAR/STR-related actions are executed without disclosure to the subject. | Compliant |
| Guidance on DeFi & Non-Custodial Protocols | Velox operates a hybrid model (non-custodial settlement with centralized gas reserve). We apply AML measures proportional to our control points. | Continuously Reviewed |
5. Sanctions Compliance & Restricted Regions
Velox implements geo-restrictions and wallet-level screening to prevent access from sanctioned jurisdictions and by sanctioned persons. The following regions are currently restricted from accessing the Velox platform:
Comprehensively Sanctioned Jurisdictions
Access is prohibited from the following jurisdictions under comprehensive sanctions by the United States (OFAC), United Nations, European Union, and/or United Kingdom:
- Cuba
- Democratic People's Republic of Korea (North Korea)
- Iran
- Syria
- Crimea Region of Ukraine
- Donetsk People's Republic (DNR) Region of Ukraine
- Luhansk People's Republic (LNR) Region of Ukraine
Additional Restricted Territories
Access is also restricted from the following territories due to specific regulatory prohibitions, heightened risk classification, or local law restrictions on virtual asset services:
- Afghanistan
- Belarus
- Burundi
- Central African Republic
- Democratic Republic of the Congo
- Iraq
- Lebanon
- Libya
- Mali
- Myanmar (Burma)
- Nicaragua
- Somalia
- South Sudan
- Sudan
- Venezuela
- Yemen
- Zimbabwe
In addition to geographic restrictions, Velox screens all interacting wallet addresses against the OFAC Specially Designated Nationals (SDN) List, EU Consolidated Sanctions List, UK Sanctions List, and UN Security Council Consolidated List. Wallet addresses flagged on any of these lists are blocked at the protocol level.
This list is subject to change as sanctions regimes and regulatory guidance evolve. If you are uncertain about your eligibility, contact compliance@velox.fi before using the platform.
6. Regulatory Inquiries & Law Enforcement Requests
Velox cooperates with regulatory authorities and law enforcement agencies in accordance with applicable law. Requests for information — including subpoenas, court orders, production orders, and regulatory inquiries — are reviewed by our legal and compliance team to ensure they meet the legal requirements of the requesting jurisdiction before any data is disclosed.
Law enforcement and regulatory authorities may submit information requests to:
Email: compliance@velox.fi
Response Time: We aim to acknowledge all law enforcement requests within 48 hours and provide a substantive response within ten (10) business days, subject to the complexity of the request and applicable legal constraints.
Formal legal process is required for disclosure of user transaction records. Velox does not respond to voluntary or informal requests for user data.
7. Regulatory Developments & Forward-Looking Statements
The regulatory environment for digital asset services continues to develop rapidly. Velox is actively monitoring the following regulatory initiatives that may affect our operations:
- EU Markets in Crypto-Assets Regulation (MiCA). The implementation of MiCA introduces a comprehensive licensing regime for crypto-asset service providers in the EU. Velox is assessing its obligations under MiCA, particularly with respect to its non-custodial swap service model.
- FATF Updated Guidance. FATF periodically updates its guidance on virtual assets and VASPs. Velox adapts its compliance framework in response to FATF guidance, including evolving expectations around non-custodial and DeFi protocols.
- U.S. Legislative Developments. Pending legislation in the United States, including proposals for a federal digital asset market structure framework, may introduce new registration or reporting obligations. Velox continues to monitor the U.S. legislative landscape.
- TRON Network Governance. As a TRON-native protocol, Velox is attentive to governance decisions, network upgrades, and regulatory developments affecting the TRON ecosystem.
Users should be aware that our regulatory status and the availability of services in specific jurisdictions may change. We will provide reasonable notice of any material changes affecting user access.
For inquiries regarding Velox's regulatory framework, licensing, or compliance program, contact compliance@velox.fi.