Legal Framework
ARYZE E-Assets are issued in alliance with regulated partners and offered exclusively by compliant companies. This ensures adherence to strict regulatory standards, enhancing trust and transparency for all stakeholders involved in the issuance and management of ARYZE E-Assets.
KYC & Due Diligence
ARYZE BVI issues E-Assets only through registered and licensed exchanges, OTC desks, and on-/off-ramps that comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) obligations set by regulators. Users are required to register on compliant platforms and provide identification and proof of residency, as direct transactions with ARYZE ApS or ARYZE BVI are not permitted. ARYZE adheres to the EU MICA (Markets in Crypto-Assets) standards, maintaining stringent solvency, trust, and transparency mechanisms. E-Assets are listed only on exchanges and platforms that meet our rigorous compliance policies.
CDD, AML, and CFT
To prevent financial crime involving E-Assets, ARYZE BVI issues them only to exchanges that adhere to strict anti-money laundering (AML) policies and procedures. E-Assets are made available on platforms compliant with UK, European, and US standards for combating money laundering and financing terrorism. These platforms must have effective systems and controls to mitigate financial crime risk. Our treasury requirements mandate that addresses be whitelisted before E-Assets can be issued, ensuring only eligible and compliant platforms participate in the minting process.
Sanctions Policy
ARYZE BVI implements a rigorous sanctions policy to prevent individuals, companies, and countries listed on prescribed sanctions lists from accessing and using E-Assets. We only list E-Assets on centralized exchanges that conduct strict screening against UN, EU, UK Treasury, and US OFAC sanctions lists across all jurisdictions. This approach is crucial to prevent the illegal use of E-Assets, such as financing terrorism or supporting oppressive regimes. ARYZE works closely with its partners to ensure compliance with global sanctions regulations, promoting the responsible and secure use of E-Assets as a valuable financial tool for both businesses and individuals.
History
Introduction: In October 2022, ARYZE (BVI) Limited received a legal opinion from Harney Westwood & Riegels LP regarding the regulatory analysis of ARYZE E-Assets in relation to securities regulations in the British Virgin Islands.
Set-Up and Structuring: ARYZE E-Assets are supported by partnerships with banking services and digital asset exchanges. The stablecoin is pegged to fiat currencies and available for issuance and repurchase exclusively to registered and regulated clients, such as Virtual Asset Service Providers (VASPs), banks, e-money providers, and Alternative Investment Funds (AIFs).
Fund Management Agreement: ARYZE ApS is responsible for securely managing the backing of ARYZE BVI's E-Assets. The fund management agreement outlines the terms and conditions, including the responsibilities of ARYZE ApS as the fund manager and the entitlements of ARYZE BVI as the fund owner. ARYZE ApS is obliged to provide regular reports and undergo an annual audit to ensure appropriate fund management.
Legal Opinion: According to the legal opinion by Harney, ARYZE stablecoins, which are crypto-assets pegged to fiat currency, are not considered legal tender in the British Virgin Islands. They are also not classified as investments under the Securities and Investment Business Act (SIBA) as they do not represent debt instruments and are not linked to ARYZE BVI's creditworthiness. Consequently, SIBA's investment activities do not apply to ARYZE stablecoin trading or exchanges with ARYZE BVI.
Token Issuance: ARYZE E-Assets are offered through our wholly-owned subsidiary, ARYZE (BVI) Ltd, based in the British Virgin Islands. This allows us to manage and maintain risk management and token issuance with ease until there is clarity, coherence, and consistency in crypto regulations across various legal jurisdictions. Our E-Assets are not considered an investment under SIBA, ensuring that individuals trading or exchanging ARYZE stablecoins with ARYZE BVI are not subject to the investment activities outlined in SIBA.
By adhering to a robust legal framework and maintaining rigorous compliance standards, ARYZE ensures the responsible issuance and management of E-Assets, fostering a secure and trustworthy environment for digital financial transactions.
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