Introduction: Why Compliance Is Core to Damex
In today’s fast-moving world of digital assets and cross-border payments, compliance is not optional, it’s the foundation of trust.
At Damex, we go far beyond basic regulatory requirements. Our in-house compliance team ensures that every client relationship is built on transparency, legality, and operational integrity. This is not just a company ethos, but is also embedded as part of our regulatory requirements and legal obligations. From understanding the jurisdictions we work with to performing dynamic risk assessments and ongoing monitoring, Damex is built for businesses that take compliance and security seriously.
1. Jurisdiction-Based Risk Assessment
Not all countries (or clients) are the same, and neither is our approach to compliance. Every onboarding process at Damex starts with a risk-based jurisdiction analysis that helps us adapt our procedures to local laws and global best practices and understand whether we can support this under our regulatory umbrella.
Examples:
- UK / EEA Clients: Must meet MiCA, PSD2, and AMLD5-level requirements
- Higher-Risk Countries: Subject to enhanced verification or onboarding limitations
2. KYC & KYB: Know Your Customer & Business
Every entity working with Damex goes through a multi-layered verification process designed to validate identity, business structure, and ultimate ownership.
Key Processes:
- Biometric & document verification (via SumSub)
- UBO (Ultimate Beneficial Owner) checks, including origin of funds & wealth
- Corporate structure and incorporation documents
- Screening for PEPs (Politically Exposed Persons) and sanctions
- Use of advanced tools like Chainalysis for blockchain activity checks
- Travel Rule Compliance – Originator & Beneficiary verification of on-chain transfers.
3. Use Case Validation
We don’t just care about who our clients are, we also care about what they intend to do. Every new client goes through a use case review to assess business activity, expected transaction types, and risk factors.
Typical use cases we evaluate:
- OTC or eOTC crypto-fiat conversion
- Stablecoin B2B payments
- Corporate treasury solutions
- Cross-border supplier or contractor payouts
4. Ongoing Monitoring & Transaction Oversight
Compliance doesn’t stop at onboarding. Damex employs real-time and retrospective transaction monitoring to ensure clients stay compliant over time.
We monitor for:
- Suspicious wallet activity
- Unusual transaction flows
- Counterparty risk exposure
- Large deviations from expected behavior
When necessary, we pause accounts and escalate to our internal compliance officers for manual review.
5. Regulated & Licensed Operations
Damex operates under multiple financial licenses, allowing us to offer regulated crypto-to-fiat infrastructure in key markets. We work proactively with regulators to ensure our frameworks evolve with new laws (like, Gibraltar DLT Framework, POCA. MiCA and PSD2).
Our licenses allow us to:
- Offer multi-currency IBANs through agency/BaaS arrangements
- OTC trading
- Custody
- Support compliant stablecoin transactions
- Onboard clients across a range of industries that align to our strategy, regulatory requirements and risk appetite
Final Thoughts: Real Infrastructure, Real Compliance
Trust isn’t built overnight, and at Damex, it’s not just a word, it’s a practice that is cemented through the entire culture of the business
Our compliance strategy is designed to help serious businesses scale in a compliant, efficient, and secure way. Whether you’re a licensed iGaming company, a payment service provider, or a licensed CASP/VASP , we’re ready to support you with a regulatory first solution, legally sound and future-ready financial infrastructure.
🔗 Want to learn more or speak with our compliance team?
Contact us to understand how Damex can support your business.
