Compliance

Regulatory compliance, per-country exchange rules, and KYC requirements

Placeholder — Pending Legal Review. The information below is a preliminary draft and has NOT been reviewed by legal counsel. Do not rely on this page for compliance decisions. Always consult your own legal advisor for jurisdiction-specific guidance.

Overview

Clypt operates as a strategy development and marketplace platform, not as a broker, exchange, or custodian. Users connect their own exchange accounts and execute trades through their own API keys. Clypt never holds, transfers, or custodies user funds.

This page outlines the general regulatory landscape for cryptocurrency trading across jurisdictions and the compliance responsibilities shared between the platform and its users.

Platform Responsibility vs User Responsibility

Area	Clypt’s Role	User’s Role
Fund custody	Never holds user funds	Maintains own exchange accounts
API keys	Encrypted storage — API keys are encrypted with Fernet (PBKDF2-derived AES) before database storage	Manages own API key permissions
KYC/AML	Does not perform KYC (not a financial intermediary)	Completes KYC on each exchange directly
Trade execution	Routes orders via user’s exchange API	Responsible for complying with local laws
Tax reporting	Provides trade history export	Files own taxes per local requirements
Exchange selection	Lists supported exchanges	Ensures exchange is legal in their jurisdiction

Per-Country Exchange Availability

Tier 1: Broadly Accessible

Exchange	US	EU	UK	Japan	Singapore	Australia
Coinbase	Yes	Yes	Yes	No	Yes	Yes
Kraken	Yes	Yes	Yes	No	Yes	Yes
Bitstamp	Yes	Yes	Yes	No	Yes	Yes

Tier 2: Regional Restrictions

Exchange	US	EU	UK	Japan	Singapore	Australia
Bybit	No	Yes	Restricted	No	Restricted	Yes
Gate.io	No	Yes	Restricted	No	Restricted	Yes

Key Restrictions by Region

United States

• Futures/derivatives trading restricted on most non-US exchanges
• Binance.US is the only Binance entity serving US customers
• Coinbase and Kraken offer limited futures products via CFTC-regulated entities
• State-level regulations vary (e.g., New York BitLicense)

European Union (MiCA)

• Markets in Crypto-Assets (MiCA) regulation effective 2024-2025
• Exchanges must register with national competent authorities
• Stablecoin-specific requirements for issuers
• Travel Rule compliance for transfers

United Kingdom (FCA)

• FCA regulates crypto asset promotions
• Leverage capped at 2× for retail consumers
• Risk warning required for crypto derivatives
• Spot trading permitted through FCA-registered firms

Japan (FSA)

• Only FSA-registered exchanges permitted
• Strict leverage limits (2x for crypto derivatives)
• Comprehensive reporting requirements

Singapore (MAS)

• Payment Services Act licensing required for exchanges
• Restrictions on marketing crypto to retail investors
• Travel Rule compliance required

KYC Requirements

All supported exchanges require KYC verification. Clypt does not bypass or substitute for exchange-level KYC.

Verification Level	Typical Requirements	Typical Limits
Basic	Email, phone	Low withdrawal limits
Intermediate	Government ID, selfie	Standard trading limits
Advanced	Proof of address, source of funds	Full access, higher limits

Clypt’s KYC Approach

Clypt itself may implement user verification in the future for:

• Marketplace sellers — Identity verification for strategy builders listing on the marketplace
• Competition participants — Verification for competition prize eligibility
• Enterprise clients — Standard B2B onboarding

Leverage and Margin Restrictions

Jurisdiction	Max Retail Leverage	Notes
US	Varies by product	CFTC-regulated futures only
EU	2x (crypto CFDs under ESMA)	Higher for professional clients
UK	2x (retail crypto derivatives)	Professional clients exempt
Japan	2x	FSA regulation
Australia	Restricted	ASIC limits on retail
Singapore	No specific cap	MAS guidance applies

Clypt’s AccountSpec allows configuring leverage per account. Users are responsible for setting leverage within their jurisdiction’s legal limits.

Tax Considerations

Clypt provides tools to help with tax reporting but does not provide tax advice:

• Trade history export — CSV/JSON export of all backtest and live trades
• P&L calculation — Per-strategy and aggregate profit/loss tracking
• Cost basis methods — Support for FIFO, LIFO, and specific identification

Users should consult tax professionals for jurisdiction-specific guidance on:

• Capital gains treatment of crypto assets
• Reporting thresholds and requirements
• Cross-border tax implications
• Staking/funding rate income classification

Security & Infrastructure

Clypt follows strict security design principles:

Principle	Implementation
No custody	Clypt never holds, transfers, or accesses user funds
Encrypted storage	API keys are encrypted with Fernet (PBKDF2-derived AES) before database storage
End-to-end encryption	TLS + AES-256 for all communication
SOC 2 & ISO 27001	Planned — not yet certified
GDPR & CCPA aligned	User data limited to what is essential for service delivery

Privacy Policy

Clypt respects user privacy and data protection:

• Minimal data collection — Email and account credentials for login only
• Encrypted exchange credentials — API keys are encrypted at rest; used only for order execution and balance checks
• Optional analytics — Aggregated anonymously, never sold to third parties
• User-owned strategy code — Builder-owned, encrypted, not visible to platform staff
• Full compliance — GDPR, CCPA, and EU-U.S. Data Privacy Framework

Risk Disclosure

Cryptocurrency trading involves high volatility and potential loss of principal.

Clypt provides tools and analytics only — not financial advice or brokerage services. Users retain full responsibility for their trades and strategies executed through their linked exchange accounts.

Disclaimer

This page is for informational purposes only and does not constitute legal, tax, or financial advice. Cryptocurrency regulations vary by jurisdiction and change frequently. Users are solely responsible for:

1. Determining whether their use of Clypt complies with applicable laws
2. Completing required KYC/AML verification on exchanges
3. Complying with local tax obligations
4. Understanding leverage and margin restrictions in their jurisdiction

Clypt makes no representations regarding the legality of cryptocurrency trading in any jurisdiction.

Related Pages

Supported Exchanges

Exchange matrix with data availability and features

Marketplace

Strategy marketplace verification and trust mechanisms