> ## Documentation Index
> Fetch the complete documentation index at: https://docs.clypt.ai/llms.txt
> Use this file to discover all available pages before exploring further.
# 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
Exchange matrix with data availability and features
Strategy marketplace verification and trust mechanisms