Summary: As cryptocurrency adoption continues to grow, new exchanges are constantly trying to make a breakthrough in the market. One of the newer names in the game is VTrader, a crypto exchange promising free trading – forever. But is VTrader legit? Here’s what we think.
What is VTrader?
When users deposit proof-of-stake (PoS) assets like Ethereum (ETH), Solana (SOL), and Polkadot (DOT), they become eligible for zero-fee trading on the platform. VTrader then stakes the deposited assets on the user’s behalf and uses the staking rewards it earns to cover the expenses that would traditionally be termed trading fees.
This model ensures that trading remains free, while the user’s deposited assets help secure the blockchain network and support protocol adoption.
Is VTrader legit?
In short, yes: it appears VTrader is a legitimate platform that has taken the first necessary steps to provide a secure trading environment. However, it’s essential to understand that all crypto investments carry some degree of risk, meaning that no platform can fully protect you from market volatility.
As per its landing page, VTrader promises ‘Industry-Leading Security.’ The company outlines its data handling policies in a detailed privacy notice that follows those of reputable financial institutions. Whether you’re a current client or simply browsing the website, VTrader assures that personal data is handled in line with global privacy standards.
Note, though, that VTrader is a relatively new exchange. This means user reviews and publicly available audits on platforms such as CertiK are lacking. Nonetheless, we can explore some of the platform’s safety policies and regulatory compliance to assess its commitment to legitimacy.
Anti-money laundering and data retention
For one, every client contracts directly with a local entity within the group, which then becomes the designated Data Controller. It is then up to the Controller to ensure user data is handled in accordance with international regulations, including the General Data Protection Regulation (GDPR) and national data protection laws.
As a Money Services Business registered with the Financial Crimes Enforcement Network (FinCEN), VTrader is required by law to collect a wide range of personal and financial information for AML (Anti-Money Laundering) compliance and legal operations in regulated markets. The data they collect includes:
- Personal information: This includes the client’s full name, birth details, contact information, etc.;
- Financial details: The site records bank account numbers, wallet addresses, credit cards, and asset sources;
- Verification documents: Upon registration, VTrader keeps information on government-issued IDs, passport copies, and even images used for identity confirmation;
- Device and browser metadata: This includes IP addresses, login timestamps, and interaction logs;
- Third-party information: The site also keeps track of data from payment processors and fraud prevention partners;
- PEP info: Some extra information may be kept regarding politically exposed persons (PEPs), that is, users holding a prominent public function.
Note that VTrader may share information with other companies within its group or with external partners such as identity verification providers, payment processors, or legal authorities. However, all disclosures mandate that all third parties uphold the same standards of data protection.
In addition, personal data is held only for as long as necessary to meet business, legal, or regulatory requirements. That includes maintaining records for legal claims, resolving disputes, and meeting AML obligations. In some cases, data may be kept longer if required by law or for technical reasons.
This is very important when it comes to promoting legitimacy, as it implies the exchange prioritizes both transparency and fund protection.
VTrader: What You Need to Know. Source: Cucu Creative YouTube channel
Financial Crimes Enforcement Network (FinCEN) regulations
VTrader is also registered with the Financial Crimes Enforcement Network, or FinCEN for short, which operates under the U.S. Department of the Treasury. Its chief mission is to protect the integrity of the financial system by combating money laundering, terrorist financing, and other unlawful financial activities. It also promotes national security via financial regulations and analysis of financial intelligence.
FinCEN regulations imply the company is recognized as a Money Services Business (MSB) and must comply with U.S. federal regulations. This also means the company must renew its registration every two years, meaning biannual reevaluations are mandatory.
Moreover, the company must provide, in writing, an overview of its policies and methods used to detect and prevent activities such as money laundering. Customer identification and verification via know-your-customer (KYC) procedures are also required, which adds to the legitimacy of the platform.
Finally, VTrader is required to report Suspicious Activity Reportings (SARs). That is, the platform has to monitor transactions and report any that seem suspicious directly to FinCEN. What’s more, all transactions over $10,000 in cash must be reported no matter what.
All of the above suggests that VTrader is in a position to offer traders a well-organized, transparent trading environment. However, it must be mentioned that FinCEN regulation is not the same as licensing by a state or federal financial regulator like the U.S. Securities and Exchange Commission (SEC). Accordingly, users will not enjoy all of the rights and protection offered by such bodies.
PCI DSS compliance
In addition to FinCEN, VTrader is also compliant with Payment Card Industry Data Security Standard (PCI DSS) regulations, following their security standards to protect payment and user data. PCI DSS is a globally recognized framework created to ensure that any organization handling payment card information does so securely.
For a crypto exchange, this means using secure systems to process card payments, encrypt sensitive data, and maintain strong access controls. It also makes regular audits mandatory, as vulnerability scans are necessary to prevent breaches and fraud. Moreover, this also implies proper storage of digital assets (e.g., cold wallets), end-to-end encryption, and strict control in regard to who can access data.
Overall, this implies that payments made on VTrader are secure and legitimate.
Other safety policies
In addition, we can note that user data on VTrader may be processed in a number of jurisdictions, including the European Union, United Kingdom, Japan, Australia, and the United States. However, when data is processed outside the European Economic Area (EEA), the platform still relies on contractual clauses to comply with the European Union (EU) standards.
Because transactions on public blockchains are immutable and visible, VTrader is not allowed to tamper with them. Users thus hold all rights over their data. What’s more, users can request access to their data in order to correct inaccuracies, delete information (only under certain conditions), limit processing, request data portability, etc.
Finally, the platform also allows users to object to specific uses of their data, especially when it comes to marketing. Accordingly, if some data is handled automatically by the algorithm, users can file a request for human evaluation, further adding to the legitimacy of the exchange.
VTrader customer support and social media platforms
VTrader customer support is available 24/7 via email, and you can get in touch with the exchange and other users on social media platforms, including:
- X (Twitter): Follow VTrader on X for real-time updates;
- Instagram: Find news, promotions, and updates on VTrader’s Instagram page;
- Facebook: Join the VTrader Facebook group and get filled in on the latest developments;
- LinkedIn: Connect with VTrader on LinkedIn and network with other traders.
The bottom line
In conclusion, VTrader promises a strong commitment to security, compliance, and transparency, and its innovative fee-free trading model presents a unique approach to exchange operations.
Its registration with FinCEN, adherence to PCI DSS standards, and alignment with international privacy regulations all suggest that VTrader is taking the necessary steps to operate within a legitimate and regulated framework. However, the platform is still relatively new, so caution and due diligence are a must.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs
Is VTrader regulated?
At the time of writing, VTrader is registered with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business. It is, however, not regulated by a body such as the U.S. Securities and Exchange Commission (SEC).
Does VTrader have KYC?
Yes, VTrader does have know-your-customer (KYC) requirements.
Does VTrader have a mobile app?
Yes, VTrader offers a mobile app for iOS and Android.
What coins can I trade on VTrader?
VTrader supports major cryptocurrencies like BTC, ETH, SOL, and a selection of altcoins.
Can you deposit fiat on VTrader?
No, you cannot deposit fiat on VTrader. The platform only operates with cryptocurrency. However, it leverages Tether (USDT) to offer stability and behave as a traditional fiat currency would on other platforms.
