AML – KYC

Pegasus Equity AS – AML & KYC Policy

Having regard for the safety of the users and due to the legal requirements, The European Union, The Unity States of America, and other countries, CDSV LLC has implemented and started to use KYC policy (customer’s identification), AML / CTF (combating money-laundering and terrorist financing) as it is required from banks and other financial institutions.

The purpose of those policies is an effective combating of money-laundering and terrorist financing (AML / CTF) on our exchange by proper identification of actual users of our accounts and supervision of their transactions. We shall identify and cease transactions made not only to purchase/sell a cryptocurrency but made mainly to hide the criminal origin of money, finance illegal activity or other unlawful behaviors.

Specific provisions of our policies are confidential and for internal use only, to prevent their avoidance by dishonest or fraudulent users. We would like to introduce to you some of the general rules and stipulations of our policies which directly concern you and affect the services we render.

User’s identification

In the first place, we are obliged to identify, beyond a reasonable doubt, the identity of persons enabled to do transactions on our exchange. This is the reason why we collect ID scans, which authenticity is verified with special software of professional external providers.

We require sending “selfie” or you’re recording with ID document to preclude the possibility of using your documents by someone else. Verification of your likeness to the photo from your ID is made with the use of special software of professional external providers or, in case of doubts, done manually by our customer support services.

In case of any doubts, our customer support team will contact you to explain any concerns and solve the issues that arose.

If we cannot determine, beyond a reasonable doubt, that the documents you provided belong to you and are the authentic we won’t be able to let you execute any transactions.

Politically exposed persons & Sanctions

– you are not a “politically exposed person” (as defined in Article 3 item 9 of the EU-directive 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (“AML IV”) or included in the European Union’s sanction lists or the sanction list of any other country or national or international organization.

– You are not a citizen of the USA (some states) or any country subject of European Union Sanctions or US Sanctions, nor are you a resident or located in the United States or any such country subject to the sanctions.

– You are the beneficial owner of the relevant funds for which you purchase EUR-cryptographic tokens (“EUR-tokens”) from the Exchange. It is for these EUR-tokens that you can purchase other cryptographic tokens at the Exchange.

– You are the beneficial owner of the relevant customer account and the relevant cryptocurrency wallet address. This means that you can only sell and purchase cryptocurrency using your own personal funds, customer account/cryptocurrency wallet address and you warrant to not conduct any transactions on behalf of someone else.

– You bear the sole responsibility for determining if any of your activities on the Exchange have tax implications, and by opening and using a customer account at the Exchange, to the extent permitted by law, you agree not to hold any Subject Person liable for any tax liability associated with or arising from your activities at the Exchange or any other action or transaction related to the Company; and
all information you have provided, or will provide, to the Company is complete, valid, and true.

User’s identification – Companies

In case of all legal entities (companies), the procedure is more stringent and depends on the company’s structure, country, etc. Primarily, we need to establish who is the owner of the company, who can represent it, where the company is based and what is the business of the company.

Since standards regarding governmental documentation of legal entities are different in each country, every time the verification of such users is doing “manually” and is considerably more time-consuming.

Transactions’ monitoring and supervision

Using our proprietary software, we also analyze all transactions that take place on our exchange looking for suspicious and unusual behaviors. Such selected transactions are analyzed by our AML specialists and evaluated if they do not provide significant AML / CTF risks or if they needed to be ceased and clarified with the User.

Additional verification

When your trade volume rises, our AML / CTF verification duties increase as well. The same happens when your transactions are “flagged” as suspicious or unusual, or our verification of your personal results in qualifying you as a person imposing significant AML / CTF risk.

In such cases, we can require additional documentation proving your real, exact place of residence, education, occupation, as well as the source of money you are using on the exchange.Unfortunately, if our AML specialists decide information received from you don’t clarify our doubts, we will be obliged to end our cooperation with you or even report your transactions to relevant authorities.

Basic AML / CTF Rules

Our operating rules include inter alia as follows:
Pegasus Equity AS does not accept cash deposits or cash withdrawals in any cases.
Pegasus Equity AS does not accept any third parties’ deposits on the user’s account, managing the account on behalf of somebody, joint or shared accounts, etc.
Pegasus Equity AS does not allow any exceptions in the field of documentation required from users.
Pegasus Equity AS reserves the right to refuse to process the User’s transaction at any time, in case of suspicion of AML / CTF risk.
In accordance with the international law, we are not obliged (or even forbidden) to inform our clients if we report their behaviors as suspicious to relevant authorities.

Sanctioned countries

In accordance with our policies we do not open accounts and do not process transactions for citizens and residents of, as well as people staying in, countries where transactions are prohibited by international sanctions or their internal law regulations, or countries which based on various criteria selected by our AML team (for example Corruption Perceptions Index by Transparency International, FATF warnings, countries with weak anti-money laundering and terrorist financing regimes determined by European Commission) impose high AML / CTF high risk.

Currently, these countries are:

Afghanistan, American Samoa, Angola, Bahamas, Botswana, Belarus, Burundi, Cambodia, Central African Republic, Chad, Congo, Cuba, Democratic Republic of Congo, Equatorial Guinea, Eritrea, Ethiopia, Ghana, Guam, Guinea Bissau, Iran, Iraq, North Korea, Lebanon, Libya, Mali, Nigeria, Pakistan, Panama, Puerto Rico, Russia, Samoa, Saudi Arabia, Sierra Leone, Somalia, South Sudan, Sri Lanka, Sudan, Syria, Trinidad and Tobago, Tunisia, Venezuela, Yemen, Zimbabwe.

Tiers of KYC verification

When your trade volume rise AML / CTF risk increases as well. That is why we must introduce proper safety and verification procedures. As a result, we introduced three Tier verification system, based on the general rule that the more money (or cryptocurrencies) you deposit or want to withdraw the more information about you and your funds we need to exclude AML / CTF risks (as we are required by law).

You should remember that this model is a result of the work and experience of our AML team and can be changed as the legal requirements of countries changes as well because of gaining new knowledge and experience. Transition, limits may change due to periodical audits and verification of efficiency of our procedures. We will keep you updated if any changes would influence your situation.

Terms & Conditions

The following terms and conditions (the “Terms”) govern your acceptance and use of the Company’s trading platform (the “Exchange”), the Company’s website Oakcrypto.com (such website, including any potential successor website, are hereinafter collectively referred to as the “Website”), including our provision of services on or through the Exchange and/or Website. You hereby confirm that you understand the Terms and hereby expressly agree to be bound by and comply with the Terms. Please review carefully and keep a copy of these Terms for your reference. If you have any questions about these Terms, please contact us prior to using the Exchange or Website.

Pegasus Equity AS, registered in Norway under registration number NO929205669 (hereinafter referred to as the “Company”, “Oakcrypto”, “we”, “us” or “our”) reserves the right, subject to applicable law, to make changes to, modify, or add or remove portions of these Terms, our Privacy Policy for Protection of Personal Data, (the “Privacy Policy”), and other incorporated terms and policies, in our sole discretion, at any time. We encourage you to check our website frequently to see the current Terms in effect and any changes that may have been made to them. All changes made to the Terms are effective immediately when we post them on the Website. No one is authorized to modify these Terms with you or otherwise enter into an agreement with you that conflicts with these Terms, except by means of written agreement signed by an authorized agent of the Company, and any other purported modifications or alterations or conflicting terms will be null and void.

Applicability & Privacy Policy

These Terms apply to all customers using the services of the Company through the Website or through any other means of access. The Terms govern your access and use of the Website, including our provision of services on or through the Website, but also exclusively apply to all transactions and business relationships between you and the Company.
You also acknowledge and agree that all information you provide to any of the Subject Persons (as defined below) is governed by our Privacy Policy, and you hereby consent to all actions any of the Subject Persons take with respect to your information consistent with our

Privacy Policy. You also acknowledge having expressly approved the applicability of the Privacy Policy when opening and verifying a customer account of the Exchange.

Warranty by the Customer

Please be aware that by opening and verifying a customer account, you expressly represent and warrant that:
– each of the Company, its current or future subsidiaries, affiliates, directors, officers, employees, agents, representatives, and any other person or entity with any involvement in the Company’s services or in developing software relevant to the Exchange or Website, in each case, whether or not affiliated with the Company or any other such person or entity (collectively, the “Subject Persons”) shall, unless such relevant Subject Person has acted fraudulently, have no responsibility or liability for the loss, transfer, misappropriation, theft, use or misuse of any cryptocurrency assets on the Exchange or any financial or physical harm or loss related thereto, and you hereby irrevocably waive any and all rights and claims with respect thereto;

– if you trade in cryptocurrency assets at the Exchange, you do so at your sole risk and expense.
– you have an adequate understanding of the risks, usage and intricacies of cryptographic tokens and any blockchain-based software relevant thereto.
– you will comply with all applicable laws regarding your use of the Exchange.
– you are legally permitted and of sufficient age to open and use a customer account at the Exchange and to approve these Terms.
– you are not a “politically exposed person” (as defined in Article 3 item 9 of the EU-directive 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (“AML IV”) or included in the European Union’s sanction lists or the sanction list of any other country or national or international organization.
– you are not a citizen of the United States or any country subject of European Union Sanctions or US Sanctions, nor are you a resident or located in the United States or any such country subject to the sanctions.
– you are the beneficial owner of the relevant funds for which you purchase EUR-cryptographic tokens (“EUR-tokens”) from the Exchange. It is for these EUR-tokens that you can purchase other cryptographic tokens at the Exchange.
– you are the beneficial owner of the relevant customer account and the relevant cryptocurrency wallet address. This means that you can only sell and purchase cryptocurrency using your own personal funds, customer account/cryptocurrency wallet address and you warrant to not conduct any transactions on behalf of someone else.
– you bear the sole responsibility for determining if any of your activities on the Exchange have tax implications, and by opening and using a customer account at the Exchange, to the extent permitted by law, you agree not to hold any Subject Person liable for any tax liability associated with or arising from your activities at the Exchange or any other action or transaction related to the Company; and
all information you have provided, or will provide, to the Company is complete, valid, and true.

Service Restrictions

The Website does not address people who are prohibited under the applicable laws or regulations of their citizenship, domicile, or residence from having access to or use such websites and services such as the Website. Persons who are prohibited from having access to the information on the Website or who are in doubt whether they are permitted to access or use the Company’s services or not, are kindly requested to leave the Website.
If the Company considers that the use of the Company’s services by a customer is not in accordance with applicable policies and/or terms (including, but not limited to, the Terms), or if the use could be in violation of law or regulation in such person’s home country jurisdiction or any other related jurisdiction, or if the use is considered to be too great a risk from an anti-money laundering or other risk perspective, the Company will not provide any such products or services to that person.

AML and KYC procedure 2.1.

We intend to provide Services only to law-abiding individuals or corporations. OAK Crypto reserves the right to apply the AML / KYC procedure to users, addresses, and particular transactions of cryptographic assets.

2.2. The User is required to pass the KYC verification if, according to our internal AML/KYC policy, we have reason to suspect that the User or their Crypto assets are involved in money laundering or terrorist financing activities.
We have the right to appoint a third-party service provider to comply with AML/KYC procedures on behalf of OAK Crypto. In processing your information, such service provider fully complies with our Privacy Policy with respect to your personal information.

2.4. OAK Crypto may provide the information collected during the AML/KYC procedure to competent authorities upon legitimate request or in accordance with the requirements of AML legislation.

2.5. OAK Crypto will not enter and have the right to cancel a business agreement with a person or entity suspected or directly involved in money laundering, or in the event that we suspect or have evidence that the funds have been the source of illegal activity.

2.6. The AML/KYC procedure includes confirmation of the identity of Users by:

2.6.1. A high-quality photo of your identity document (passport or driving license) valid in your country.

2.6.2. Proof of source of funds.

2.6.3. Selfie with a passport.

2.6.4. Confirmation of the place of residence.
2.6.5. Any other documentation requested by our compliance department.

2.7. We have the right to suspend any transaction and block any crypto asset if we have any suspicions under AML/KYC procedures. Upon successful completion of the AML/KYC verification, the transaction that was placed on hold can be processed.

2.8. If there is any reasonable doubt that any information provided by the User is incorrect, false, out of date or incomplete, OAK Crypto has the right to send the User a notice to demand corrections or terminate all Services to the User.

Eligibility
3.1. Prior to your use of the Services and on a continuing basis, you represent, warrant, agree and agree that:

3.1.1. use our Services at your own discretion and risk.

3.1.2. you are solely responsible for any applicable taxes that may be paid while using our Services.

3.1.3. You are NOT located in, under the control of, or a citizen or resident of Iran, North Korea, or the US (“Restricted Locations”). OAK Crypto does not operate in restricted locations. OAK Crypto reserves the right to select the markets and jurisdictions in which it operates and may restrict or deny services to certain countries at any time.

3.1.4. you are at least 16 years of age or other legal age, depending on your relevant jurisdiction.

3.1.5. you agree to pay the fees for Trades completed through the Services as defined by OAK Crypto, which we may change from time to time.

3.1.6. there are risks, associated with the Internet-based system, such as the failure of hardware, software, and Internet connections, and with the Blockchain Protocol, such as any malfunction, unintended function, unexpected operation, or attack on the Blockchain Protocol.

3.1.7. You warrant that your Crypto Assets belong to you and are not sold, encumbered, disputed, or seized and that there are no third-party rights to your Crypto Assets.

3.1.8. You will need to provide the correct information to build the Exchange (for example, payment and payment wallet address). Such wallet addresses will not be associated with terrorism, scam, scam, or any kind of illegal activity.

3.2. You further represent, agree, and warrant that you will not violate any law, contract, third-party right, or commit a tort by accessing or using the Services and that you are solely responsible for your actions and/or inactions while using our Services. Notwithstanding the foregoing, you represent, agree, and warrant that you will NOT:
3.2.1. use our Services or immediately stop using our Services if any applicable law in your country prohibits or will prohibit you from doing so at any time.

3.2.2. use our Services to engage in fraudulent, fraudulent, or any type of illegal activity.

3.2.3. trade through our Services or attempt to pay for crypto assets obtained from illegal gambling activities; fraud; money laundering; terrorist activities; or any other illegal activity. With our Services, the user can only use cryptographic assets, which are obtained from legal sources.

3.2.4. provide false, inaccurate, or misleading information.

3.2.5. attempt to modify, decompile, reverse engineer, or disassemble our software in any way.

3.2.6. use any robot, spider, crawler, scraper, or other automated means or interface not provided by us to access the Services or extract data.

3.2.7. attempt to circumvent any content filtering techniques we employ or attempt to access any services or areas of our Services that you are not authorized to access.

3.2.8. develop third-party applications that interact with our Services without our prior written consent.

3.2.9. Encourage or induce any third party to engage in any of the activities prohibited under this Section.

3.3.YOU INDEMNIFY US AND HOLD US HARMLESS AGAINST ANY AND ALL CLAIMS, DEMANDS, AND DAMAGES, WHETHER DIRECT, INDIRECT, CONSEQUENTIAL, OR SPECIAL, OR ANY OTHER DAMAGES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, LOSS OF USE, LOSS OF PROFITS OR LOSS OF DATA OR LOSS OF ASSETS, WHETHER IN AN ACTION OF CONTRACT, TORT (INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE) OR OTHERWISE, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE INVALIDITY OR BREACH OF ANY OF THE PROVISIONS OF THIS SECTION AND THE ENTIRE TERMS.

Privacy of information
4.1. Never share your transaction details, including but not limited to your OAK Crypto-ID, transaction hash, recipient address, and/or email related to an OAK Crypto account, with anyone except OAK Crypto representatives. OAK Crypto will not ask you for a specific user account, transaction, or other personally identifiable information unless: (i) the information is requested to help complete a transaction initiated by you; (ii) the information is requested to efficiently process your inquiry; or (iii) is legally required, for example, in connection with the AML/KYC procedure.

4.2. You must ensure that your transactions and/or account details are not disclosed by ensuring that you do not knowingly or accidentally share, provide, or facilitate unauthorized use thereof.

4.3. WITHOUT LIMITING THE FOREGOING, OAK CRYPTO SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE INCURRED AS A RESULT OF ANY INFORMATION SUBMITTED THROUGH THIS WEBSITE OR ANY EMAIL CONTACT THEREOF OR FROM YOUR TRANSMISSION OF INFORMATION TO ANY PERSON OR ENTITY (S) AS A RESULT OF A REQUEST FOR SUCH TRANSMISSION REASONABLY BELIEVED BY OAK CRYPTO TO BE MADE BY SUCH PERSON OR ENTITY.