KNOW YOUR RISK Insight into the risks of cryptocurrency enterprises, professional escort for compliant development

Although blockchain technology emphasizes decentralization and privacy protection, meeting regulatory requirements is still an inevitable and important aspect. Alexey Pertsev, the developer of Tornado Cash, was arrested on suspicion of money laundering and concealing criminal funds. Similarly, Ooki DAO (formerly known as bZx DAO) was sued by the U.S. Commodity Futures Trading Commission (CFTC) for illegally providing off-exchange transactions and failing to register.

“KNOW YOUR RISK (KYR)”, a Web3 compliance solution launched by Launch Factor and LianGuaiNews, has undergone nearly three weeks of internal testing and is officially open to the public today (August 9).

What is KNOW YOUR RISK?

KNOW YOUR RISK is a compliance and financial solution provider in the Web3 field. It can help centralized cryptocurrency exchanges, crypto funds, custodians, as well as decentralized L1/L2 blockchains, DeFi, GameFi, SocialFi, and other blockchain projects solve compliance issues in Singapore and Hong Kong. It includes a full range of services from identifying problems to solving them, specifically divided into four steps: identifying risk points, analyzing risk points, providing solutions, and executing and reviewing.

KNOW YOUR RISK is jointly initiated by Launch Factor and LianGuaiNews. The Launch Factor team comes from top exchanges, the Big Four accounting firms, and cryptocurrency projects, and has rich experience in the field, able to provide comprehensive customized solutions for digital assets and the financial industry.

LianGuaiNews is a leading information platform in the blockchain and Web3.0 field, providing industry entrepreneurs and innovators with cutting-edge international news and research reports.

Elaine, the business partner of Launch Factor, expressed great pleasure in working with LianGuaiNews to provide better enterprise services for the entire Web3 industry, solving the current pain points of “difficult compliance and high costs”. By assisting entrepreneurs in avoiding detours, it can also promote the compliance development of the entire industry.

Free Risk Assessment Report

To solve a problem, you must first identify the problem. The KNOW YOUR RISK official website provides a simple but multidimensional risk assessment tool that can help project teams and business executives get a preliminary understanding of the risks they may face.

The preliminary risk assessment is completed through a series of multiple-choice questions. Users participating in the assessment first need to select their own business type, which can be divided into six directions as shown in the figure below. Based on different businesses, KNOW YOUR RISK has designed questions from different dimensions.

After completing the risk assessment, users can leave their email address to immediately receive a risk assessment report, as shown in the figure below. The report indicates the severity of the diagnostic results and provides preliminary recommendations for modules such as strategy, legal structure, regulation, anti-money laundering (AML)/know your customer (KYC), risk management, accounting, and operations.

It should be noted that this risk assessment and its report only provide suggestions for some key factors of the project and may not include all risk factors, nor does it constitute legal advice. The above risk assessment and report are open to everyone free of charge. If you need further understanding of the legal risks faced and their solutions, please reply to this email to contact the Launch Factor team for assistance.

Starting from Singapore and Hong Kong

Web3 enterprises need a regulatory-friendly, legally stable, low-tax, and internationally influential environment to develop and expand their business, and Singapore and Hong Kong can meet these needs. KNOW YOUR RISK’s business will start from Singapore and Hong Kong, the two economic centers in Asia.

Currently, both Singapore and Hong Kong are working hard to formulate transparent and clear policies to attract and support fintech and blockchain companies. For example, the Monetary Authority of Singapore provides a “sandbox” program for startups, allowing these companies to test their technology and business models in a restricted and regulated environment. After the pandemic, Singapore has also become the preferred destination for leading figures in the Asian crypto industry to immigrate to.

Starting from June 1st this year, the “Guideline for Virtual Asset Trading Platform Operators” in Hong Kong has come into effect, which will issue new licenses for crypto exchanges and allow them to provide services to retail customers. On August 3rd, both HashKey Group and OSL disclosed that they have obtained upgraded licenses from the Hong Kong Securities and Futures Commission and can now conduct business for retail users.

KNOW YOUR RISK is familiar with the whole set of compliance processes for exchanges, custodians, and other businesses operating in Hong Kong and Singapore. For businesses outside of Hong Kong and Singapore, the KNOW YOUR RISK team can also provide appropriate assistance and recommend its partners to provide such services.

Business covering multiple key areas

Launch Factor, together with the LianGuaiNews team, has provided services to more than 120 Web3 companies, saving clients over 5 million US dollars in costs and assisting them in obtaining licenses and passing audits more quickly. The services provided cover multiple key areas, including but not limited to the following:

Web3 Financial Due Diligence: Assisting investors and exchanges in conducting detailed and comprehensive on-chain and off-chain investigations of Web3 projects, including background checks on individuals, sources of funds, and financial due diligence.

Web3 Accounting: Assisting clients in designing and preparing SOPs and financial statements that comply with local audit standards, seamlessly integrating complex and ever-changing on-chain transaction data with accounting principles.

Web3 Legal and Compliance: Helping clients understand local compliance policies and ensuring compliance with all local laws and regulatory requirements.

For the application of licenses for crypto exchanges, KNOW YOUR RISK can assist clients in preparing compliance materials, contacting custodians, conducting audits, and other processes.

Summary

In the highly volatile and ever-changing cryptocurrency industry, understanding and managing risks is crucial. KNOW YOUR RISK not only allows crypto companies to be aware of risks and meet compliance requirements, but also serves as a bridge to success and sustainable development for these companies.

The team, experience, and expertise of KNOW YOUR RISK ensure that they can not only identify and assess potential risks, but also provide practical and feasible solutions to meet the unique needs of this emerging field. Click here to conduct a free risk assessment.

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