Anti-Money Laundering (AML) Regulations

1. Customer Identification (KYC) Policy and Ongoing Verification

1.1) Commitment to KYC: All users (including individuals and exchanges) are required to complete the Customer Identification and Verification (KYC) process. Access level to platform services, transaction limits, and risk tiers depend on successful completion of the following stages:

KYC Level 1 (Initial Verification): This level provides the minimum requirements for account activation and limited access to services, and includes:

• Providing full name and ID card number.
• Providing and verifying a mobile phone number via OTP, voice message, or other intermediary methods.

Document Verification: EZDEX uses governmental APIs or ID card structure validation tools to perform initial verification and name-to-ID matching.

KYC Level 2 (Full Identity Verification): This level is required to increase transaction limits and includes all Level 1 requirements plus providing a full image (front and back) of a valid identification card. If necessary, a selfie with the ID document (Liveness Check) may also be requested.

KYC Level 3 (Exchanges and Address Verification): This level is designed exclusively for qualifying exchanges and legal entities and includes all previous requirements plus providing official company registration documents, full details of owners/managers, and valid proof of postal address/business location of the exchange.

1.2) Sufficiency of Information: For limited access, successful completion of KYC Level 1 is considered sufficient. However, due to the intermediary nature of financial transactions, EZDEX reserves the right to request additional documents to verify authenticity, ensure AML compliance, or when increasing transaction limits.

1.3) Ongoing Verification: EZDEX reserves the right at any time (especially in case of sudden increases in transaction volume, suspicious activity changes, or regulatory updates) to request re-verification, information updates, or additional documents. Failure to respond or providing false information will result in account suspension and temporary fund freeze.

1.4) Prohibition of Third-Party Accounts:

Users are not allowed to use bank accounts, credit cards, or cryptocurrency wallets registered under another person’s name (third party) for fiat or cash transactions on the platform. If used and processed by the exchange, the responsibility and consequences lie solely with the transaction parties, and EZDEX assumes no responsibility.

2. Transaction Monitoring and Risk Assessment

2.1) Transparent and Traceable Transactions: All financial transactions must be transparent and traceable. No hidden, suspicious, or cash transactions without ID card or valid token presentation are accepted in EZDEX.

2.2) Asset Source Screening: As part of AML commitments, EZDEX screens digital asset transactions (USDT/BTC) deposited into the platform for connections to high-risk sources such as illegal platforms, coin mixers, or ransomware-linked addresses. If transfers from prohibited or high-risk sources are detected, EZDEX reserves the right to immediately freeze the transferred amount and act according to internal AML protocols.

2.3) Request for Source of Funds (SOF): EZDEX or exchanges may request Source of Funds documentation (such as payslips, sales contracts, or documents related to legal mining) for large or suspicious transactions.

2.4) Definition of Suspicious Transactions: Transactions directly or indirectly associated with invalid information, forged documents, or unusual characteristics (such as sudden geographical changes, multiple small-value transactions, or links to blocked assets) are considered suspicious and may result in account freeze or seizure of guarantee deposits.

3. Prevention of Illegal Transactions and Enforcement Measures

3.1) Non-Participation Commitment: Conducting any illegal transaction or any transaction based on unlawful income (such as money laundering, terrorist financing, or other financial crimes) is strictly prohibited.

3.2) Immediate Action: If EZDEX encounters suspicious or illegal transactions, it reserves the right to suspend the activities of suspicious users without prior notice, freeze associated accounts, and hold digital assets (in escrow or guarantee deposit) until the situation is clarified.

3.3) Seizure of Guarantee Deposit: If intentional involvement or negligence by the exchange in illegal (AML/CFT) activities is proven, EZDEX reserves the right to seize all or part of the guarantee deposit to cover damages, legal fees, and penalties for violating these policies.

4. Suspicious Activity Reporting (SAR) and Cooperation with Authorities

4.1) Reporting Obligation (SAR): If EZDEX identifies any suspicious activity (SAR – Suspicious Activity Report), it is obligated to submit the required reports to competent authorities under international and domestic regulations of its jurisdiction, without prior notice to the user or exchange.

4.2) Legal Cooperation: EZDEX cooperates with judicial and regulatory authorities worldwide that submit official, legal, and written requests. Cooperation is limited to providing identity information, contact details, and the user’s latest internet identifiers to enable direct inquiry.

4.3) Inquiry Procedure: Judicial and regulatory authorities may submit official requests from an organizational email (to the contact section). To prevent misuse, EZDEX will not respond to unofficial or unrelated email requests.

4.4) Non-Exemption from Inquiry: Despite EZDEX’s geographical limitations in service availability to some countries, this does not exempt EZDEX from cooperating with competent authorities in proven cases of misconduct. If authorities from countries connected with the platform (due to user or exchange misconduct) submit sufficient and official documentation, EZDEX will provide all necessary and feasible cooperation.

5. Legal Compliance with Local and International Regulations

5.1) Compliance Commitment: EZDEX, all users, and all exchanges are required to comply with all laws and regulations related to financial activities and digital assets in their respective jurisdictions.

5.2) Exchange Responsibility for Licensing and Records: Exchanges active on EZDEX must update their valid legal licenses according to their country’s regulations. Additionally, exchanges must retain all KYC records and fiat/cash transaction histories (for at least 5 to 7 years, depending on local AML standards) and provide them to competent authorities upon request.

5.3) Education and Awareness: EZDEX strives to raise user awareness of money laundering risks, terrorist financing, and methods of prevention, and provides necessary educational resources in this regard.

5.4) EZDEX Non-Liability: EZDEX assumes no responsibility for the source, destination, or underlying purpose of users’ or exchanges’ fund transfers and only oversees the transaction process to ensure compliance with available standards whenever possible. Final legal responsibility lies with the transaction parties.