SSG’s Compliance Procedures Increase Crypto Subscriptions

Background

A leading digital money platform specializing in cryptocurrency partnered with SSG (Support Services Group) in February 2018, the year of the Great Crypto Crash. The client chose SSG Mexico in Hermosillo for its proximity to the US and previous experience serving clients in the financial services industry.

Circumstance 

In 2017, cryptocurrencies experienced an epic rise, defying market expectations. Bitcoin reached an all-time high of $20,000 on most industry price indexes. This rise was seen as a step forward in legitimizing cryptocurrency as it entered the global financial system.

But only after a year, the crypto bubble burst, resulting in the sell-off of cryptocurrencies starting in January 2018. This triggered a probe by the US Justice Department into possible illicit trading and price manipulation. The client approached SSG with a request: help them come up with compliance procedures, considering the investigations into the crypto trade.

Approach

Before partnering with SSG, the client did not have any detailed compliance procedures in place for their cryptocurrency trade. In the absence of those procedures, supported jurisdictions in the US will be severely limited. It was up to SSG to create detailed procedures from scratch.

Solution

SSG’s Compliance Department sat down with the client and drafted the required compliance procedures. This also involved in-depth research and understanding of US regulatory requirements in both the federal and state-by-state level.

SSG successfully implemented its compliance procedures that resulted in the client being able to ply their cryptocurrency trade in most jurisdictions in the United States.

The client has also relied on SSG’s services not only for its cryptocurrency trade, but also for its other lines of business, like stablecoins, metals, and national currencies. The account has expanded to 132 agents and leadership combined.

Result 

• The client now has the most jurisdictions in the US among competitors, and even avoided the hefty fines the US government levied at other crypto wallets in 2018
• The client was so impressed with the results, they asked SSG to conduct training sessions on compliance procedures for their own internal leadership team.
• With the compliance procedures in place, sign-ups increased by 373%

Result 

The client has grown its overall business as a digital money platform, not just in cryptocurrency, with the help of SSG. Aside from Compliance and Business Due Diligence, the account now includes other departments like Fraud Prevention, Customer Support, and Fraud Investigations, with further expansion planned.