Category

KYC / AML procedures

Is it enough to simply declare the source of funds, and does BitBay ask all users about such matters?

A declaration alone is not sufficient and must be supported by appropriate documentation (§ 43(1) of the Estonian Act on Prevention of Money Laundering and Terrorist Financing of 26.10.2017). In the context of verifying the source of funds deposited on the platform, the principle of an individual ap...


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What are the consequences of refusing to submit a statement of revenue sources?

In the event that, without the support and participation of the Customer (i.e. by providing the relevant documentation), BitBay is unable to determine and confirm the sources of the funds deposited at the exchange, in accordance with the Act (Estonian Act on Prevention of Money Laundering and Terror...


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What if the cryptocurrency comes from an exchange that no longer exists and I am unable to generate a confirmation?

In this case, it is best to use email confirmations of the deposit or withdrawal orders to/from the exchange. If this is not possible either, please describe as precisely as possible the flow of the funds being verified to enable verification of the information about them in the external sources of...


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How do I document cryptocurrencies that have been obtained, for example, by trading on another exchange? What documentation is sufficient in this case?

In this situation, it is sufficient to prove the purchase of the cryptocurrency using a FIAT currency on another exchange and prove the history of the transaction that generated the gain transferred to the BitBay account. Ideally, the transaction history on another exchange should allow the user to...


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How do I show the source of funds if I have exchanged cryptocurrencies on a platform from which transaction confirmations cannot be generated?

In this case, we can accept the history in the form of screenshots representing the exchange transaction. It is important that these should show an ID which allows the owner to be determined, e.g. an email address, username or name and surname that also appears in our system so that we can link the...


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How can I show my savings from the last ten years or so?

In this case, we suggest that you present the process of collecting your savings by generating a statement of amounts credited in your savings account showing how they were collected. We understand that it is not always possible to present the entire savings process, so usually at the beginning we a...


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How do I prove a donation made to me if it does not exceed the amount required to be reported to the Tax Office?

In this case, it is sufficient to confirm the transfer of funds between the donor and the recipient. The easiest way to do this is to show a transfer confirmation or a donation agreement with indication of a donation in cash.

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Why do other exchanges handling FIAT currencies not ask about such matters?

The BitBay exchange is a regulated exchange holding an Estonian licence for “Providing a virtual currency service”. As a result, the exchange is subject to the rules of the Estonian jurisdiction. The operations of the BitBay exchange are undertaken on the basis of AML regulation, namely the Estonian...


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Why do we not verify this type of issue when the funds are deposited and often only when the funds are withdrawn?

This is an approach developed on the basis of good practice. The vast majority of customers prefer to be able to dispose of their funds as soon as they make a deposit and leave the verification issues for when they make a withdrawal out of the exchange. However, this is not the rule; often verificat...


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Was ist, wenn meine Gelder meinem Konto nicht gutgeschrieben wurden und ich aufgefordert werde, die Herkunft der an die Börse gezahlten Beträge zu überprüfen?

Dies ist meistens dann der Fall, wenn wir von einem Zahlungsdienstleister um Unterlagen über die Herkunft der an die Börse gezahlten Gelder gebeten werden. Nach den AML-Vorschriften sind auch die Betreiber von Zahlungssystemen verpflichtet, ihre eigenen Transaktionen zu überwachen. Daher hängt es ni...


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How can I prove the origin of the funds if they come from mining of cryptocurrencies or airdrops of various kinds?

Depending on the situation, we suggest the following solutions: a) If these are self-mined funds, complete information must be provided. By providing the ID of the block you mined, Bitbay is able to confirm the movement of those funds from the moment they appear until they are deposited with the B...


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Was ist, wenn ich die geforderten Unterlagen eingereicht habe, diese aber nicht ausreichen?

Laut Gesetz kann BitBay zusätzliche Unterlagen von Ihnen anfordern, wenn es der Meinung ist, dass die von Ihnen bisher eingereichten Unterlagen unzureichend sind. Unzureichende Unterlagen sind solche, aus denen sich die Herkunft der an uns gezahlten Gelder nicht ableiten und zuordnen lässt. Die häuf...


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From what amount is the source of funds deposited with the exchange verified?

As a rule, we assume a threshold of EUR 15 000, which means, more or less, that above this amount you should expect a source enquiry. However, this should not be taken for granted. There are situations in which we have enough information about a customer not to ask about this with such an amount, an...


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Is verification of the source of funds a one-off event?

The process of verifying the source of funds needs to be updated from time to time (Article 20(1)(6) and Article 23(2)(1-3) of the Estonian Anti-Money Laundering and Terrorist Financing Act of 26.10.2017). Unfortunately, it is not possible to clearly define this period because it depends on a number...


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Why is the source of the funds required to be verified, despite the fact that they come from a bank that has already verified the funds?

Each financial institution is required to operate its own AML system. We are therefore obliged to carry out a check on the source of funds deposited with us for our own purposes as defined by the AML Act. Unfortunately, the principle of limited trust applies in this context. Although each bank condu...


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Why is BitBay asking for this information when no bank has ever asked me this kind of question?

Banks also verify the source of their customers' funds. They have direct access to the customer's account, and can also exchange customer information with each other, so the process is less "invasive" for the customer, often even unnoticeable. A cryptocurrency exchange unfortunately does not have th...


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