Compliance model (KYC/KYB/KYT)

 

Why know your customer (KYC)?

KYC is the process NexPlace uses to verify and validate a user’s identity and assess risk before enabling access to certain features. Applying KYC helps us:

• Protect users against account misuse and impersonation
• Meet regulatory obligations and maintain a compliant marketplace

To reflect different user needs and risk profiles, NexPlace uses a tiered onboarding approach. The verification requirements and available limits/features vary by KYC levels, as described in the sections below

Before accessing deposits, trading, or withdrawals, users are required to complete identity verification, which may include:

• Personal identification information,
• Identity verification through documents or trusted providers,
• Screening against sanctions lists and other risk indicators.

KYC helps ensure that accounts are used legitimately and securely

KYC profiles

On NexPlace, a profile defines a user’s account access, limits, and available features based on their verification status. NexPlace currently offers three account profiles: Limited Access, Standard Access, and Full Access, designed to support different activity levels and transaction volumes.

During onboarding, users are initially onboarded under the Limited Access profile. As their activity or needs evolve, users may request an upgrade to Standard Access or Full Access. Additional information may be requested where necessary to meet regulatory and risk management obligations

Limited Access

This level is designed for users with lower transaction volumes and standard risk profiles. Typically includes:

• Identity information and verification (KYC),
• Sanctions list and risk screening,

This level is suitable for users who trade or hold digital assets at relatively small volumes.

Standard Access

This level applies to users with higher transaction volumes or increased activity. May include:

• Identity information and verification.
• Sanctions list and risk screening.
• Your source of income.
• Information about how you plan to use the platform.

Additional reviews may be required as activity increases or changes.

Full Access

This level is intended for high-volume users or users with more complex activity patterns. May include:

• Identity information and verification
• Enhanced due diligence measures,
• Your source of funds and wealth
• Sanctions list and risk screening
• Information about how you plan to use the paltform. Additional information might be required.

This level helps ensure compliance with regulatory obligations applicable to higher-risk or higher-value activity.

Know Your Business (KYB)

KYB applies to business or institutional accounts where supported. This process may involve:

• Verification of the legal entity,
• Identification of beneficial owners and authorized representatives,
• Assessment of the nature of the business and expected activity. 

KYB helps prevent misuse of corporate structures and supports transparency for business users.

Corporate level 1

This level is designed for corporate clients with moderate transaction volumes and standard business activities. Typically includes:

• Legal entity verification,
• Identification of directors, authorized signatories, and beneficial owners,
• Basic assessment of business activity and expected transaction patterns,
• Sanctions and risk screening.

This level is suitable for businesses engaging in limited or non-complex digital asset activity.

Corporate level 2

This level applies to corporate clients with higher transaction volumes or more complex operational structures. May include:

• Enhanced due diligence measures,
• Additional information might be required,
• Review of ownership structure and control,
• Increased transaction monitoring and periodic reviews.

This level helps ensure compliance with regulatory expectations applicable to higher-value or higher-risk corporate activity. 

Know Your Transaction (KYT)

KYT focuses on monitoring transactions rather than just user identity.

What to expect as a user

In practice, compliance can affect onboarding and transactions:

• Verification level can adapt based on activity, transaction size, and risk signals.
• Some deposits or withdrawals can be delayed for compliance review.
• Some assets can require additional steps (for example, issuer‑level wallet whitelisting) before you can withdraw to self‑custody.