Compliance and Trust
Trust is the cornerstone of any payments infrastructure. Without clear compliance standards and transparency, adoption at both retail and institutional levels is impossible. Epay integrates compliance directly into its architecture to ensure that every transaction—whether individual remittance, merchant checkout, or enterprise payout—operates within global and local regulatory frameworks. This foundation not only protects users but also strengthens Epay’s credibility with regulators, financial institutions, and business partners.
KYC/AML Procedures
Epay enforces Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements at all on-ramp and off-ramp points.
SEP-12 Alignment: Inspired by Stellar’s SEP-12 standard, Epay provides a standardized interface for identity verification. This allows Epay and its partners (anchors, custodians, processors) to exchange compliance data in a secure and interoperable way.
Individual KYC: Users must verify their identity before depositing or withdrawing fiat. This includes government-issued ID, biometric verification where required, and screening against international sanctions lists.
KYB for Businesses: Merchants and enterprises undergo Know Your Business (KYB) checks, including validation of company registration, beneficial ownership, and operational legitimacy.
Ongoing Monitoring: Automated systems monitor transactions for suspicious patterns, unusual activity, and compliance flags. These checks operate continuously, not just at onboarding.
By embedding these controls into the transactional fabric of Epay, compliance is not an afterthought—it is an operational baseline.
Regional Compliance Frameworks
Financial regulation is jurisdiction-specific. Epay takes a region-first compliance approach, ensuring that services meet the standards of each market where they operate.
MiCA (Markets in Crypto-Assets Regulation): In Europe, Epay is designed to comply with MiCA’s requirements for stablecoins and crypto-asset service providers, including reserve management and transparency obligations.
CBN (Central Bank of Nigeria): In African corridors, especially Nigeria, Epay aligns with Central Bank guidance on cross-border remittances, mobile money integration, and anti-fraud protections.
FinCEN (Financial Crimes Enforcement Network): In the United States, Epay integrates with FinCEN standards for money services businesses, ensuring compliance with AML and suspicious activity reporting rules.
Other Jurisdictions: Epay works with local regulators and licensed partners in each country to ensure that anchors, custodians, and payment processors operate under valid licenses.
This multi-jurisdictional compliance design ensures that Epay can scale globally without facing regulatory bottlenecks.
Transparency & Proof-of-Liquidity
Epay understands that compliance is only half the trust equation. The other half is transparency. Users and partners need verifiable assurances that stablecoin balances and fiat reserves are fully backed.
Reserves Management: Fiat and stablecoin reserves are held with regulated custodians and segregated from operational funds.
Attestations: Independent third-party firms provide regular attestations confirming that reserves equal or exceed customer liabilities. These reports are published for public review.
Proof-of-Liquidity: On-chain proof mechanisms show real-time liquidity available in Epay’s treasury. This enables users and regulators to verify that the system is solvent at all times.
Auditability: Epay’s compliance and financial records are structured for audit readiness, making it easier to work with regulators and financial partners.
By combining formal attestations with cryptographic proof-of-liquidity, Epay offers a dual layer of trust—bridging traditional financial standards with blockchain transparency.
Key Benefits
For Users: Assurance that funds are safe, reserves are backed, and the platform operates under proper oversight.
For Businesses: Confidence that merchant and enterprise services are compliant with regional laws, reducing operational risk.
For Regulators: A framework that demonstrates proactive adherence to AML, KYC, and liquidity standards.
For Partners: Increased trust and reduced reputational risk when integrating with Epay’s infrastructure.
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