Compliance and Security Audit
At the end of October, omoku launched the Version 0.8.1 of the Exchange Service. We have unfortunately not yet been able to activate trading for most users, regardless of the verification status. The main reason is that some adjustments are necessary due to the relocation of the company’s headquarters to Switzerland. The local requirements regarding the prevention of money laundering differ in some respects from the requirements in Estonia. Full compliance with the strict requirements is a prerequisite for us to be able to commence public trading as a regulated Swiss financial services provider. This process can take several weeks. Unfortunately, we have no influence on this duration.
We use the time until the public start of trading alongside in-depth testing and bug fixing by suspending v0.8.1 external security audits. Their results are incorporated directly into the platform. In addition, improvements that are hardly visible to the user are implemented under the hood.
How does the exchange work?
When purchasing IOTA you transfer Euros and receive the current exchange value in IOTAs on your wallet after receipt of payment. Your IOTA address will be checked before each transaction, which prevents Double Spending. To date, two payment methods have been successfully implemented and tested — SEPA transfers and Sofortüberweisung/Klarna. How to purchase with these two payment methods:
- Klarna is supported by a significant number of European banks and enables the immediate purchase of IOTA. The assets in the bank account are immediately converted into IOTA and paid out to a desired IOTA address. The process is carried out immediately after receipt of payment.
- For SEPA transfers, a connection from your bank account to a IOTA address must first be established. The IOTA address is assigned by entering the payment purpose (reference number) for each bank transfer. You transfer any amount in Euro within your personal limit and receive the exchange value in IOTA paid out to your wallet after receipt of payment. Important: The time from receipt of payment to order processing and delivery can currently take up to two weeks for larger orders. We have only a small influence on this duration and our goal is to reduce it considerably in the future.
Sales of IOTA also take place in a single step. You send us IOTA to an unique IOTA address. After the transaction has been confirmed, you will receive the current exchange value in Euro directly to your bank account.
In summary, two highlights of our switching service:
- One-step change: Euros can be changed to IOTAs and vice versa in a single step. The exchange value will be paid directly to your IOTA Wallet or bank account.
- Verification of IOTA address: If you specify an already used, insecure IOTA address as delivery address, we will not perform the payment. Instead, we will ask you for a different IOTA address to avoid the risk of double spending.
SEPA connections go much further than discussed so far and are an important part of our long-term vision to build a direct and automated gateway between FIAT currencies and the IOTA Tangle. Our vision and the connection with SEPA connections will be discussed in more detail in a future blog article.
Originally published at omoku.io.