Overview
At ANDX USA LLC, we are committed to providing a secure and compliant platform for cryptocurrency transactions. To facilitate fiat-to-cryptocurrency conversions (onramp and offramp services), we partner with ZeroHash, a regulated financial services provider registered as a Money Services Business (MSB) with the U.S. Financial Crimes Enforcement Network (FinCEN). ZeroHash holds Money Transmitter Licenses (MTL) in all U.S. states and territories, ensuring compliance with federal and state regulations. This disclosure outlines the process of fiat-to-stablecoin conversion, the role of ZeroHash, the regulatory framework, and the risks associated with holding digital assets on our platform.
Fiat-to-Stablecoin Conversion
When you transfer fiat currency (USD) from your bank account to the ANDX USA LLC platform, ZeroHash facilitates the transaction as our payment provider. The fiat currency is converted into stablecoins, such as USDT (Tether), which are digital assets pegged to the U.S. dollar at a 1:1 ratio. The converted stablecoins are then credited to your platform wallet. You may convert your stablecoins back to USD at a 1:1 ratio at any time, subject to applicable fees, processing times, and regulatory requirements. This conversion process is powered by ZeroHash’s Request for Quote (RFQ) system, which ensures efficient and transparent transactions.
Stablecoin Storage
Your funds will be held in a digital wallet as stablecoins. Stablecoins are designed to maintain a stable value pegged to the U.S. dollar. However, as digital assets, they are subject to certain risks, which are detailed below.
ZeroHash’s Regulatory Licensing
ZeroHash holds Money Transmitter Licenses (MTL) in all U.S. states and territories, including a virtual currency license from the New York State Department of Financial Services (NYDFS). These licenses require ZeroHash to comply with stringent regulatory standards, including anti-money laundering (AML), counter-terrorism financing (CTF), and state-specific consumer protection requirements. ANDX USA LLC leverages ZeroHash’s licensing framework to provide compliant services in the U.S. until our own MTL licenses are obtained.
Verification of Licenses
ZeroHash’s MTL licenses are issued by individual state regulatory authorities, such as the New York State Department of Financial Services (NYDFS) and other state banking departments. These licenses ensure that ZeroHash adheres to standards for financial integrity, consumer protection, and cybersecurity. ANDX USA LLC verifies ZeroHash’s licensing status regularly to ensure ongoing compliance. Users may request additional details about ZeroHash’s licenses by contacting our support team.
User Fund Protection
ANDX USA LLC and ZeroHash implement robust measures to protect user funds:
- Segregation of Funds: User funds are held in segregated accounts in accordance with regulatory requirements to ensure they are protected and not commingled with operational funds.
- Security Protocols: Both ANDX USA LLC and ZeroHash employ industry-standard encryption, multi-factor authentication, and secure infrastructure to safeguard your assets.
- Stablecoin Reserves: Stablecoins, such as USDT (Tether), are backed by reserves managed by their issuers to maintain their 1:1 peg with USD. ANDX USA LLC works with ZeroHash to ensure transparency in the conversion process.
Despite these measures, users should be aware of the inherent risks associated with digital assets, as outlined below.
Risks of Digital Assets
Investing in and holding digital assets, including stablecoins such as USDT, involves significant risks, including but not limited to:
- Market Volatility: While stablecoins aim to maintain a 1:1 peg with USD, external market conditions, issuer operational issues, or liquidity constraints may affect their stability.
- Regulatory Changes: Changes in U.S. or international regulations may impact the availability, functionality, or value of stablecoins on our platform.
- Security Risks: Digital assets are susceptible to cyber threats, including hacking, phishing, or loss of private keys. While ANDX USA LLC and ZeroHash implement robust security measures, no system is entirely immune to risks.
- Operational Risks: Technical issues, system downtimes, or third-party service interruptions (e.g., ZeroHash or stablecoin issuers) may affect access to your funds.
- Counterparty Risk: The stability of stablecoins depends on the issuers’ reserves and operational integrity. Any failure by the issuer could impact your funds.
For a comprehensive list of risks, refer to the Risk Disclosure statement available on the Platform.
Regulatory Compliance
ANDX USA LLC operates in compliance with applicable U.S. federal and state regulations. We leverage ZeroHash’s MTL licenses for fiat-to-cryptocurrency transactions and utilize industry-standard Know Your Customer (KYC) processes, currently provided by SumSub, to ensure compliance with AML and CTF regulations. Our KYC processes involve collecting and verifying user information to maintain a secure and compliant platform.
ZeroHash SDK Integration
To facilitate fiat-to-cryptocurrency transactions, ANDX USA LLC integrates with ZeroHash’s Software Development Kit (SDK). This integration enables ZeroHash to collect user information and conduct initial screening to ensure compliance with regulatory requirements. The SDK supports ZeroHash’s Request for Quote (RFQ) system for both Buy/Sell/Hold Services and On Ramp Services, ensuring efficient and compliant transaction processing.
Contact Us
If you have any questions about this disclosure, our services, or the regulatory framework, please contact our support team at support@andxus.io. For regulatory inquiries, contact our compliance team at compliance@andxus.io. ANDX USA LLC
Address: 7901 4th St N, Ste 300, St. Petersburg, FL 33702