KNOW YOUR RISK: Gain insight into the risks of encrypted companies, and professionally escort compliance development

Although blockchain technology values decentralization and privacy protection, meeting regulatory requirements is still an inevitable and important link. Tornado Cash developer Alexey Pertsev 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 offering OTC trading and failing to register.

The Web3 compliance solution "KNOW YOUR RISK (KYR)" jointly launched by Launch Factor and PANews 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, which can help centralized encryption exchanges, encryption funds, custodians and decentralized L1/L2 blockchains, DeFi, GameFi, SocialFi and other areas Blockchain projects address compliance issues in Singapore and Hong Kong. It includes a complete set of services from problem discovery to problem solving, specifically divided into four steps: discovering risk points, analyzing risk points, solutions, execution and review.

KNOW YOUR RISK is co-sponsored by Launch Factor and PANews. The Launch Factor team comes from top exchanges, the Big Four accounting firms, and encryption projects. They have extensive experience in this field and can provide comprehensive customized solutions for customers in the digital asset and financial fields.

PANews is a leading information platform in the field of blockchain and Web3.0, providing industry entrepreneurs and innovators with cutting-edge information and research reports from an international perspective.

Elaine, a business partner of Launch Factor, said that she is very happy to work with PANews to provide better enterprise services for the entire Web3 industry and solve the current pain points of "difficult compliance and high cost". While assisting entrepreneurs to avoid detours, it can also promote the compliant development of the entire industry.

Free Risk Assessment Report

To solve a problem, you must first find the problem. The KNOW YOUR RISK official website provides a simple but multi-dimensional risk assessment tool that can help project parties and corporate executives get a preliminary understanding of the risks that a project may face.

The preliminary risk assessment is completed through a series of multiple choice questions. Users participating in the assessment first need to choose their own business type, which can be divided into 6 directions as shown in the figure below. According to different businesses, KNOW YOUR RISK has designed questions of different dimensions.

After completing the risk assessment, the user can immediately receive the risk assessment report by leaving an email address, as shown in the figure below. The report indicates the severity of the diagnostic findings and gives initial recommendations for modules such as strategy, legal structure, regulation, anti-money laundering (AML)/know your customer (KYC), risk management, accounting, operations, etc.

It should be noted that this risk assessment and its report only provide suggestions on some key factors of the project, and may not include all risk factors, nor can they constitute legal advice. The above risk assessments and reports are free and open to everyone. If you want to know more about the legal risks you face and their solutions, you can reply to the email and contact the Launch Factor team.

Starting from Singapore and Hong Kong business

Web3 businesses need a regulatory-friendly, legally stable environment with low taxes and international reach to grow and expand their business, and both Singapore and Hong Kong can meet these needs. KNOW YOUR RISK's business will start from the two Asian economic centers of Singapore and Hong Kong.

Currently, both Singapore and Hong Kong are struggling to develop transparent and clear policies to attract and support fintech and blockchain companies. For example, the Monetary Authority of Singapore offers a "sandbox" program for startups, allowing them to test their technology and business models in a restricted and regulated environment. After the epidemic, Singapore has also become the first choice for immigration of Asian encryption leaders.

From June 1 this year, Hong Kong's "Guidelines for Operators of Virtual Asset Trading Platforms" will come into effect, which will issue new licenses for encrypted exchanges and allow services to be provided to retail investors. On August 3, both HashKey Group and OSL revealed that they have obtained license upgrades from the Hong Kong Securities Regulatory Commission, and both can conduct business for retail users.

KNOW YOUR RISK is familiar with the entire compliance process for exchanges, custodians, etc. to conduct business in Hong Kong and Singapore. For businesses outside Hong Kong and Singapore, the KNOW YOUR RISK team can also provide appropriate assistance and recommend its partners to provide this service.

Covering multiple key areas of business

The Launch Factor and PANews teams have provided services to more than 120 Web3 companies, saving customers more than $5 million in costs, and helping them get licenses and pass audits faster. The services they provide cover many key areas, including but Not limited to the following fields.

Web3 financial due diligence: assist investors and exchanges to conduct detailed and comprehensive on-chain and off-chain investigations of Web3 projects, including personal background investigations, sources of funds, and financial due diligence.

Web3 Accounting: Assist customers in designing and preparing SOPs and accounting statements that meet local audit standards. Make complex and changeable on-chain transaction data seamlessly connected with accounting standards.

Web3 Legal and Compliance: Help clients understand local compliance policies to ensure compliance with all local legal and regulatory requirements.

For example, for license applications for encrypted exchanges, KNOW YOUR RISK can help customers complete the process of preparing compliance materials, contacting custodians, and conducting audits.

Summary

In the highly volatile and ever-changing cryptocurrency industry, understanding and managing risk is critical. KNOW YOUR RISK not only allows encryption companies to know risks and meet compliance requirements, but also serves as a bridge for encryption companies to achieve success and sustainable development.

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