Finrax operates as a licensed Estonian crypto exchange and crypto payment processor, with its roots traced back to Bulgaria. Led by Miroslav Marinov and Roberto Penchev, the company aims to bridge the gap between crypto and fiat currencies, offering services such as crypto payments, instant deposits, and fast bank settlements. However, given the evolving regulatory landscape and inherent risks associated with the crypto industry, a critical compliance review is essential to assess Finrax’s adherence to regulatory standards and its commitment to security and transparency.
- Jurisdiction: Finrax operates under the regulatory framework of Estonia and Bulgaria. It is imperative to ensure that the company complies with all relevant regulations, including anti-money laundering (AML) and know your customer (KYC) requirements.
- Virtual Currency Regulations: As a crypto exchange and payment processor, Finrax must adhere to virtual currency regulations to prevent illicit activities such as money laundering and terrorist financing. Verifying the authenticity of Finrax’s licenses and registrations with the respective regulatory authorities in Estonia and Bulgaria is crucial to confirm its compliance status.
- Founders and Directors: The presence of Miroslav Marinov and Roberto Penchev as founders and directors of Finrax raises questions regarding corporate governance and potential conflicts of interest.
- Nominee Directors: The absence of nominee directors is viewed positively. However, transparency in decision-making processes is essential to align with regulatory standards.
- Roles and Responsibilities: Clearly defining the roles and responsibilities of key personnel mitigates operational risks and ensures accountability.
- Complaints: While no complaints have been identified regarding Finrax, the volatile nature of the crypto industry necessitates heightened vigilance.
- Association with Regulators: Regular communication with regulatory bodies and proactive engagement can enhance Finrax’s reputation and demonstrate commitment to compliance.
Due to our criteria we rate them ORANGE