U.S. Risk & Compliance Disclosures

U.S. Risk & Compliance Disclosures

Last Updated: August 30, 2024

1. OUR AML/ATF PROGRAM

We have established and implemented an Anti-Money Laundering, Anti-Terrorist Financing, and Trade & Economic Sanctions Program (“AML/ATF/Sanctions Program” or “Program”) to ensure a robust and compliant digital asset trading platform. We want to promote legal, transparent business activities and maintain a strong reputation among our customers, regulators, and the digital asset industry. The Program is designed to reasonably prevent money laundering and terrorist financing through a risk-based, multi-layer control system. 

The first layer includes a stringent customer identification program, including verifying the identity of our customers, whether individuals or entities. In addition to obtaining identification documents, we obtain for non-natural persons their entities’ beneficial owners/natural persons consistent to international standards such as the Financial Action Task Force (FATF). 

The second layer includes a risk-based system to warrant additional customer due diligence. To accomplish this, we screen our customers (including beneficial owners) against the entities/persons on The Government of the Hong Kong SAR Gazette, United States Office of Foreign Assets Control (OFAC) Sanctions Lists, and the United Nation Security Council Sanctions List, among other government-provided lists of sanctioned individuals and entities. We also may screen against other lists on a discretionary basis to protect our reputation and customers. 

The third layer includes ongoing monitoring for suspicious activity. If we suspect or have reason to suspect suspicious activities have occurred, we will file suspicious activities reports with local regulators. A suspicious transaction is often inconsistent with a customer’s known and legitimate business, or personal activities. 

These are the primary components of our compliance program; however, the most important glue or connection to these layers are our leadership team and staff, including AML/Risk personnel that execute training, oversight and a sound compliance culture.

 2. OUR ROLE AND ACTIVITIES

We provide online digital asset trading services and a platform to spot trade digital assets in certain permitted jurisdictions. Our Services are available through associated application program interfaces and/or mobile applications and through OKCoin USA Inc. (incorporated in the United States of America).  

 3. REGULATORY LANDSCAPE

We understand that regulatory bodies have taken a diverse approach to the laws and regulations regarding digital assets, including some characterizing or defining digital assets as virtual financial asset (by Malta), convertible virtual currency (by USA FinCEN), virtual commodity (by Hong Kong) or digital payment token by Singapore. As a trading platform, we believe that bitcoin and litecoin (as well as other alternative-coins) are digital assets that are emerging as an innovative alternative asset class; and therefore, digital assets should not be called currency or money. 

Digital assets are not fiat money nor fiat currency. Digital assets such as bitcoin and litecoin are NOT backed by any government or central bank. Nevertheless, since we provide a valuable feature to our customers who wish to trade and settle in fiat, we believe it is imperative to maintain a robust AML/ATF/Sanctions program as we connect with the fiat financial system. We may at times have opinions of the different regulatory approaches taken by various government bodies; however, at all times, we will fully abide by rules and regulations of the respective countries we operate in. We regularly reach out to regulators and industry on the best approach to regulating digital asset businesses. Furthermore, OKX does not accept certain customers. 

We may not make all of the Services available in all markets and jurisdictions, and may restrict or prohibit use of all or a portion of the Services from Restricted Locations, which at this time include Afghanistan, Algeria, Bangladesh, Bolivia, Canada, Cuba, El Salvador, France and its overseas territories, Hong Kong, Iran, India, Japan, Malaysia, Nepal, Nigeria, North Korea, Syria, the Crimea, Donetsk and Luhansk regions of Ukraine, parts of the United States of America and its territories, and Uzbekistan. 

We may restrict services in other jurisdictions including but not limited to Australia (specifically regarding our derivatives-related and cefi-related services), Bahamas (specifically regarding our retail products), Brazil (specifically regarding our derivatives-related and P2P services), Eritrea (specifically regarding our P2P services), Russia (specifically regarding our fiat payment services), Singapore (specifically regarding our cefi-related services), South Korea (specifically regarding our derivatives-related and P2P services), the United Kingdom (specifically regarding our derivatives-related, cefi-related, and P2P services).

We cooperate with governments and respect regulations and comply with applicable regulations. As good corporate citizens, we may be asked for information from law enforcement authorities and will assist if permissible by law as law enforcement conduct investigations to pursue and thwart illicit activity. What this also means is that our platform is intended for law abiding customers. We welcome the opportunity to earn your business, and in return we require that you act legally and properly on our platform.

 4. RISKS

Trading in digital assets is considered high risk. Digital assets such as bitcoin and litecoin are NOT backed by any government or central bank. The risk of loss in trading or holding digital assets can be substantial. You should carefully consider whether interacting, holding, or trading digital assets is suitable for you in light of your financial condition.

Trading virtual currencies and other digital assets involves unique risks that are not typically associated with official currencies, goods, or commodities. Virtual currencies are supported by technology and trust rather than by any central authority. There is no central bank to issue additional currency or take corrective actions to safeguard the value of virtual currencies during a crisis. Any bond or trust account maintained by OKX for the benefit of its users may not be sufficient to cover all potential losses incurred by users.

Be aware that the value of virtual currency may be derived from the continued willingness of market participants to exchange legal tender for virtual currency, which may result in the potential for permanent and total loss of value of a particular virtual currency if the market for the virtual currency declines or collapses for an extended period of time.

You cannot stop the payment of a preauthorized transfer of virtual currencies and other digital assets. Virtual currencies and other digital assets can be lost if sent to an incorrect address. This includes situations where the address is formatted incorrectly, contains errors, or is meant for a different type of digital asset. If you send virtual currencies or digital assets to an address designated for a different type of asset, they may be lost. While we may attempt to recover assets sent to the wrong address, it is not obligated to do so.

The completion time for any transfer depends on third-party actions beyond our control, and we cannot guarantee how long any transfer will take. We may set limits on the amounts for inbound or outbound transfers or may suspend or terminate the ability to transfer virtual currency, other digital assets, or fiat currency into or out of your OKX wallet or account.

 5. COMMUNICATIONS

Essential information related to your account, including account details, transaction receipts, history, confirmations, amendments to our Terms of Use, notices, and other disclosures, will be sent to you electronically (via email, mobile push notifications, text messages, or other digital communication methods) and can also be accessed by logging into your account.

We may charge a fee for providing additional information or delivering transaction history and other details in a different format. However, we will not charge you for records requested in connection with a genuine claim of an account error.

You are responsible for keeping your email address and/or mobile phone number up to date with us to ensure you receive electronic communications. If we send you a communication but you do not receive it due to an incorrect, outdated, or blocked email address or phone number, or any other issue that prevents you from receiving these communications, it will still be considered delivered. 

You can update your email address, mobile phone number, or street address at any time by contacting the support center, rhttps://www.okx.com/help. If your email address or phone number becomes invalid and electronic communications are returned, we may consider your account inactive, potentially preventing you from completing transactions until you provide a valid contact method.

If you have questions or require assistance with our customer due diligence controls, please reach out to our 24/7 customer service representatives by phone, chat or email at us.support@okx.com

For any law enforcement requests, please refer to the Law Enforcement Request Guide.

6. DIFFERENT VERSIONS

This "Risk & Compliance Disclosure" may be posted in different languages. If there are any discrepancies, the English version shall prevail.