P2P Currency Exchange Platform requires AML compliance?

Question

I am looking to create a peer to peer currency exchange service that can be accessed through your phone. Think of it like the "Uber for Currency Exchange."

Scenario: I am traveling to Argentina and need Argentinean Pesos. Rather than paying exorbitant fees to change currency at the bank and airport or using my credit card which also charges fees, I would like to exchange my US dollars with someone nearby that may have Argentinean Pesos at a lower rate.

The product is a platform that connects users that have X currency with users that have Y currency.

Would this type of business require AML compliance?

or

Answers: 1 public & 0 private

Lawrence lau
IP Broker

Any service that interfaces to real financial system needs regulatory compliance. To give example, Singapore has ruled that bitcoin can be considered akin to a virtual game counter, but as soon as it is exchanged for real goods/services, then GST (and the usual fiscal reporting) is expected. China startups tried using mobile phone but got shut down. Now anything which is bitcoin related that has a real point of presence needs to comply but for private blockchains, it can be considered an internal accounting mechanism. So far the startups I've observed are trying to handle low-value transactions that fall below the mandatory reporting requirements but make no mistakes, as soon as you deal with real money, you need to follow the law.

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