Regulatory Compliance and KYC
OpenFund is committed to balancing decentralization with regulatory security, ensuring a safe and efficient investment environment for fund managers and investors. Our compliance framework is designed to provide maximum accessibility while offering enhanced privileges for users who complete additional verification steps.
Unlike traditional financial platforms, KYC (Know Your Customer) is not mandatory for all users. However, KYC is required for Partner Funds and unlocks significant advantages for fund managers who wish to scale their funds, access higher investment limits, and attract institutional capital.
At the same time, to ensure accountability and security, all fund managers—regardless of KYC status—must link a valid X (Twitter) and Telegram account to their fund. This serves as a minimum identity verification measure, preventing malicious actors from operating anonymously while still respecting user privacy.
1. Mandatory Verification Requirements (For All Funds)
To create a fund on OpenFund, every fund manager must associate their account with:
An X (Twitter) account – This ensures fund managers have a public-facing reputation that holds them accountable. A Telegram account – Used for direct communication, investor updates, and community engagement.
These mandatory requirements help maintain transparency, credibility, and investor confidence without enforcing full identity disclosure (KYC) for smaller-scale funds.
2. KYC & Its Advantages
While KYC is not mandatory for all funds, it is required for Partner Funds and unlocks several benefits for fund managers looking to operate at a larger scale.
Benefits of Completing KYC
Higher Fund Limits – Non-KYC funds are capped at $1,000,000 in total investments, whereas KYC-verified Partner Funds have no cap on fund size.
Access to Partner Fund Status – Verified fund managers can apply to become Partner Funds, which come with higher visibility, lower fees, and premium marketing support from OpenFund.
Expanded Trading Privileges – KYC-verified managers can access advanced trading features, increased leverage options, and direct integrations with regulated financial instruments.
Institutional & High-Net-Worth Investor Access – Many larger investors require KYC verification before committing significant capital. Completing KYC boosts fund credibility and increases investor trust.
Reduced Withdrawal & Deposit Restrictions – KYC-verified funds benefit from shorter withdrawal request times and lower fees on high-volume transactions.
For fund managers who want to scale, attract serious capital, and operate with higher privileges, KYC is a strategic advantage.
3. Non-KYC Funds & Their Limitations
OpenFund fully supports decentralization, and fund managers who prefer not to complete KYC can still operate freely. However, non-KYC funds have certain limitations in place to protect investors and maintain a fair ecosystem:
Restricted Access to New Token Launches – Non-KYC fund managers cannot create, bundle, or launch new token offerings.
Higher Protocol Fees – Non-KYC funds may be subject to higher platform fees compared to verified partner funds.
No Partner Fund Eligibility*– Only KYC-verified managers can apply to become Partner Funds, which benefit from increased investor trust and higher profit-sharing models.
While non-KYC funds still have access to all core OpenFund features, these limitations help mitigate potential risk, ensuring investor security while maintaining decentralized accessibility.
4. Compliance With Global Regulatory Standards
OpenFund operates in accordance with global financial and crypto regulatory standards, ensuring that the platform remains compliant, scalable, and legally sound across multiple jurisdictions. Our compliance measures include:
AML (Anti-Money Laundering) Compliance – KYC-verified funds follow strict anti-money laundering guidelines to prevent illicit activities.
Legal Partnerships – OpenFund works with Hassan’s International Law, a top-ranked fintech legal firm, ensuring that our operations meet regulatory standards while protecting user rights.
Jurisdictional Flexibility – OpenFund’s structure allows fund managers to operate within their respective regulatory frameworks, adapting to local compliance requirements without imposing unnecessary restrictions.
By integrating optional KYC verification, OpenFund provides a balanced regulatory model—offering decentralized access for all users while ensuring compliance for those who seek institutional and high-value investor participation.
5. Privacy & Data Protection
At OpenFund, user privacy is a top priority. Any KYC data collected from Partner Funds is:
Stored securely with regulatory-compliant third-party providers.
Never shared with unauthorized entities.
Only used for compliance purposes (AML, investor verification, and security audits).
For non-KYC users, OpenFund ensures full anonymity while still requiring a minimum level of public accountability through social media verification.
*Exceptions will be made for community-verified anonymous personal
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