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Saatja: Ivan <[email protected]> Saadetud: 15.03.2022 16:04 Adressaat: RAB rahapesu <[email protected]> Teema: Request Manused: Request Crypto Billing OU.docx Hello! I have made a request, attached - "Request Crypto Billing OU.docx" Thank you in advance for your answer! Best regards, Ivan Makhankov Dear Sirs, I represent Crypto Billing OÜ, the Company registered in Estonia with the registration number 16064485, whose registered office is at Harju maakond, Tallinn, Mustamäe linnaosam, Laki tn 30, 12915, where I act as a sole Management Board member. I submit this request to clarify whether the &quot;Money Laundering and Terrorist Financing Prevention Act&quot; requirements applied to my business activity due to the reasons I specify below. Background. Business model Until recently, I was engaged in P2P trading activity on the Binance P2P platform ( https://p2p.binance.com ) platform, acting as a natural person in my interest. My activity was as follows: I bought cryptocurrency in centralized exchanges or the Binance P2P platform as an individual and then sold it to the individuals on the Binance P2P platform. For clarity, P2P trading is the act of buying and selling virtual assets directly between individuals without any intermediary. The P2P exchanges, such as the Binance P2P platform, connect buyers and sellers, where they browse virtual assets ads or post ads of their own. After a response to such ads, crypto assets are deposited by Binance P2P; then, the buyer transfers the amount specified in the ads to the seller's bank account. Seller confirms receipt of the money, and after that, the deposited crypto assets are transferred to the buyer by Binance on the P2P platform . Thus, the exchange and transfer of virtual assets are carried out by Binance, which has the status of the virtual asset service provider. Wherein the identity verification and other AML obligations regarding buyers and sellers are carried out by Binance. However, as my turnovers began to increase, payment platforms that I used for finance management required me to open a corporate account (that I can open if I register a legal entity). In addition, I was asked to provide an AML Policy, which is mandatory for regulated companies, while my activities are not subject to AML regulation. I registered Crypto Billing OÜ and now use the business-to-customer (B2C) functionality which is one of the models of Peer-to-Peer (P2P) on the Binance platform along with the consumer-to-consumer (C2C) model. This model does not imply changing the P2P business model specified above. Crypto exchange and transfer services are still provided by Binance . The only difference is that there is a legal entity on the buyer’s or seller's side. Justification of the position. Legal basis I believe that the P2P trading activities that I described above are not AML/CFT regulated activities due to the following . In line with the Estonian &quot;Money Laundering and Terrorist Financing Prevention Act&quot;, including the Amendments coming into force on March 15th, 2022, the Virtual Asset Service Provider, is [§ 3 (10), (10 1 ), (10 2 ), (10 3 ) of the Act]: virtual currency wallet service , that means a service in the framework of which keys are generated for customers or customers' encrypted keys are kept, which can be used for the purpose of keeping, storing and transferring virtual currencies; virtual currency exchange service , which means service with the help of which a person exchanges a virtual currency against a fiat currency or a fiat currency against a virtual currency or a virtual currency against another virtual currency. a virtual currency transfer service is a service that enables at least part of a transaction to be carried out electronically through a virtual currency service provider on behalf of the originator for the purpose of transferring virtual currency to a virtual currency wallet or account of the beneficiary, regardless of whether the originator and the beneficiary are the same people or whether the originator and the beneficiary use the same service provider; arranging a public or private offer or sale, or the provision of a related financial service, for or on behalf of an issuer in connection with the issuance of virtual currency; That is, services mentioned above must be licensed and comply with AML regulation, implement AML/CTF systems and controls, policies and procedures. Based on the description of services provided in the AML Act and Explanatory Note to the Amendments, I suppose that when acting as both a natural or legal person, I am not considered as a regulated entity under the AML Act because: I do not keep someone's funds and keys; I do not provide exchange services; I also do not provide intermediary services between sellers and buyers of virtual currencies and do not act on behalf of any third parties. The individuals who buy my virtual assets and I are the Clients of Binance , an AML/CFT regulated entity, and conducts the KYC verification process and has AML Policy. 3. Request Considering all of the above, I would appreciate it if you could clarify whether my understanding is correct - my P2P activity is not subject to AML regulation, both in the case of trading as an individual and in the case of a legal entity, since I do not carry out activities specified in the law. Accordingly, I also am not obliged to have AML Policy and KYC solution. Best regards, Ivan Makhankov