13.5 KYC and AML Framework

ARX adopts a tiered identity model that balances regulatory requirements with privacy.

Tier	Verification Level	Access	Description
Tier 0 – Privacy Mode	No personal data, wallet-based authentication only	Basic messaging, small-value transactions	Enables pseudonymous participation while limiting exposure and transaction volume.
Tier 1 – Verified User	Light KYC (basic identity verification)	Full app functionality, including VPN/eSIM and merchant payments	Designed for compliant access to regulated services while maintaining user privacy.
Tier 2 – Business / Institutional	Full KYC and AML screening	Merchant tools, API integrations, and higher transaction limits	Ensures compliance for enterprise users and payment service partners.

KYC and AML processes are conducted through regulated third-party providers under Swiss and EU standards. Data is encrypted, stored securely, and used solely for verification purposes.