Regulatory Compliance

Built on Trust & Compliance

VEL Token operates under strict regulatory frameworks, ensuring full compliance with U.S. federal securities laws and financial regulations

Regulatory Framework

SEC Regulation D

Private Placement Exemption

Rule 506(c) Compliance

VEL Token is issued under SEC Regulation D, Rule 506(c), which allows for general solicitation to accredited investors only. This ensures:

  • • Verification of all investor accreditation status
  • • Full disclosure of material information
  • • Federal securities law compliance
  • • Exemption from public offering requirements
  • • State securities law preemption (Blue Sky)

Filing: Form D filed with the U.S. Securities and Exchange Commission

FinCEN MSB Registration

Money Services Business

Federal Registration Completed

Velar Capital Group is registered with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business, covering:

  • • Digital asset issuance and custody
  • • Payment processing services
  • • Cross-border fund transfers
  • • Anti-Money Laundering (AML) compliance
  • • Know Your Customer (KYC) procedures

Registration: FinCEN MSB Registration Number on file

Issuing Entity

Velar Capital Group LLC

Registered Financial Technology Company

Corporate Details

Legal Name: Velar Capital Group LLC

Jurisdiction: New York, United States

Formation Date: July 9, 2021

Business Type: Financial Technology

CEO: Julio Contreras

Licenses & Registrations

SEC: Regulation D Filer

FinCEN: MSB Registered

NY State: Business Entity Registered

Insurance: Institutional Coverage Active

Audit: Big 4 Accounting Firm

Audit & Oversight

Internal Controls

Compliance Committee

Quarterly legal and risk reviews

Technical Audit Center

Smart contract security monitoring

Risk Management Dept.

Quantitative risk assessment

External Audits

Financial Audit

Annual audit by Big 4 firm

Legal Review

Securities and tax compliance

Insurance Assessment

Coverage verification and updates

Blockchain Verification

On-Chain Records

All issuance and distributions logged

Independent Nodes

Third-party validation network

Public Verification

Transparent and immutable records

Investor Protection

Asset Security

Custody: Independent third-party custody with segregated accounts

Cold Storage: 80% of assets in offline multi-signature wallets

Insurance: Institutional-grade coverage for digital assets

Operational Separation: Trading and custody funds kept separate

Emergency Protocols: Automated circuit breakers and recovery procedures

KYC/AML Procedures

Identity Verification: Multi-factor authentication and documentation

Accreditation Check: Income and net worth verification for all investors

Source of Funds: Anti-money laundering screening

Ongoing Monitoring: Transaction surveillance and risk scoring

Sanctions Screening: OFAC and international watchlist checks

Important Legal Information

Accredited Investors Only

VEL Tokens are offered exclusively to accredited investors as defined under Rule 501 of Regulation D. Investors must meet specific income or net worth requirements and provide verification.

No Public Offering

This is a private placement exempt from registration under the Securities Act of 1933. Tokens have not been registered with the SEC and carry resale restrictions under Rule 144.

Jurisdictional Restrictions

VEL Tokens are not available to residents of certain jurisdictions. Prospective investors must consult local counsel regarding the legality of participation in their jurisdiction.

This page is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy VEL Tokens. Any offers or sales will be made only through official offering documents.