Regulatory Framework

ThePaymaster stands at the forefront of digital innovation in high-value paymaster services, combining cutting-edge technology with unwavering commitment to regulatory compliance.

Our approach balances innovation with robust regulatory oversight, ensuring secure and compliant payment distributions across both traditional and digital assets for our clients worldwide.

Our Regulatory Position

ThePaymaster operates under the Commercial Agent Exemption provided by Paragraph 2(b) of Schedule 1 of the Payment Services Regulations 2017. This exemption specifically covers payment transactions conducted through a commercial agent authorised to act on behalf of either the payer or payee exclusively.

Our operational model aligns precisely with this framework through:

• Acting exclusively as the sender’s agent in each transaction
• Establishing distinct agency appointments for every transaction
• Maintaining clear separation between sender and recipient relationships
• Processing distributions solely under explicit sender authority

Secure Banking Infrastructure

To ensure the highest standards of security and compliance, ThePaymaster maintains dedicated Client Mandated Accounts with established banking partners. These accounts operate under strict regulatory oversight and feature:

• Complete segregation from operational accounts
• Exclusive use for authorised payment distributions
• Support for GBP, USD, and EUR as standard currencies
• Additional currency capabilities upon request

For digital asset distributions, we work with regulated partners to ensure the same high standards of security and compliance that we maintain for traditional currency transactions.

Comprehensive Compliance Framework

Our commitment to compliance encompasses:

• Advanced KYC and KYB Verification We employ sophisticated verification technology through Sumsub, ensuring thorough identity verification for all transaction participants, whether they’re receiving traditional or digital currencies.
• Transaction Monitoring Real-time monitoring systems track all payment flows across both traditional and digital assets, ensuring security and regulatory compliance throughout the distribution process.
• Wallet Verification For digital asset transactions, we maintain rigorous wallet verification processes, linking each wallet to fully verified individuals or entities.
• Audit and Documentation Comprehensive audit trails maintain complete transaction records across all distribution types, supporting our commitment to transparency and accountability.

Looking Forward

ThePaymaster is actively pursuing Authorised Payment Institution status with the UK’s Financial Conduct Authority. This forms part of our broader strategic vision to:

• Establish new standards in paymaster services Enhance regulatory oversight of digital payment innovations Develop a robust global framework for payment distribution
• Maintain industry-leading compliance standards
• As we expand globally, we are committed to securing appropriate regulatory authorisations across key financial markets, strengthening our position as a trusted partner for high-value payment distributions, regardless of the asset type involved.

Our Commitment

ThePaymaster’s regulatory framework reflects our dedication to maintaining the highest standards of compliance while delivering innovative payment solutions. We continue to invest in our regulatory infrastructure, ensuring our services remain at the forefront of both technology and compliance, whether handling traditional currencies or digital assets.

This framework statement was last updated: January 10, 2025