Legal Name Requirement: Explanation and Justification
Written By Cptcr
Last updated 12 months ago
1. Introduction
We enforce a real-name requirement for all registered users to ensure regulatory compliance, security, fraud prevention, and operational integrity. This document outlines the legal, contractual, and operational justifications for this policy and how it aligns with GDPR and other international regulations.
2. Legal and Regulatory Compliance
2.1. Financial and Tax Compliance
CPTCR operates globally and must comply with international financial and taxation regulations. While payments are processed through third-party providers such as Stripe and PayPal, CPTCR must still retain accurate user records to ensure compliance with regulatory obligations, particularly in cases where:
Tax audits or financial investigations require verification of transactions.
A payment provider ceases operations, requiring CPTCR to maintain independent transaction records.
Under EU VAT regulations, businesses must maintain transaction records, including user details, for financial reporting and audits.
Relevant Legal References:
GDPR Article 6(1)(c) – Compliance with a Legal Obligation
EU VAT Directive – Tax Record-Keeping Requirements
2.2. International Compliance Obligations
As a company with global operations, CPTCR must comply with multiple jurisdictions' regulatory frameworks. Certain countries and regions impose identity verification requirements for financial transactions, tax compliance, and fraud prevention.
Maintaining verified user identities ensures that CPTCR adheres to cross-border compliance standards, mitigating risks related to fraud, money laundering, and regulatory penalties.
Relevant Legal References:
GDPR Article 6(1)(f) – Legitimate Interest in Legal and Regulatory Compliance
3. Security and Fraud Prevention
CPTCR enforces real-name collection as a preventative measure against fraud, impersonation, and abuse. The absence of identity verification can lead to:
Creation of fraudulent or duplicate accounts for malicious activities.
Impersonation and identity misuse within the platform.
Compromised platform security due to unverified user access.
While CPTCR provides Two-Factor Authentication (2FA), its activation is optional for users. Real-name verification serves as an additional security layer, ensuring that accounts are linked to legitimate individuals or entities.
Relevant Legal References:
GDPR Article 6(1)(f) – Legitimate Interest in Fraud Prevention and Security
4. Contractual Obligation Under CPTCR’s Terms of Service
Upon registration and at checkout, users explicitly agree to CPTCR’s Terms of Service, which mandate the provision of a real name.
Excerpt from CPTCR’s Terms of Service (Section 5 – Account Registration)
5.1. To comply with EU regulations, users must provide accurate and complete information during registration, including their legal name and any other requested details.
5.2. Failure to provide truthful information will result in account termination and the removal of all associated services.
Since users agree to these terms, the real-name requirement is contractually enforceable under GDPR's Contractual Obligation Clause (Article 6(1)(b)).
Relevant Legal References:
GDPR Article 6(1)(b) – Processing Necessary for Contract Performance
5. Data Protection and GDPR Compliance
CPTCR follows GDPR compliance principles to ensure that personal data is processed lawfully, securely, and transparently.
Minimal Data Collection: CPTCR only requires a legal name, ensuring that data collection remains proportional to its purpose.
Restricted Data Usage: The collected real name is not used for marketing or profiling and is solely for verification and regulatory purposes.
Data Security Measures: CPTCR encrypts all stored data, restricting access to authorized personnel handling billing and compliance matters.
Relevant Legal References:
GDPR Article 5 – Data Minimization Principle
6. Implications of Refusing to Provide a Legal Name
Users are required to provide a legal name as part of the Terms of Service agreement. If a user refuses:
CPTCR reserves the right to terminate the account due to non-compliance with contractual terms.
Associated services linked to the account may be removed, as specified in the Terms of Service.
Failure to provide accurate information may result in non-compliance with regulatory standards, potentially affecting CPTCR’s ability to operate legally.
Can Users Object to This Policy Under GDPR?
Under GDPR Article 21, users may object to data processing based on legitimate interest. However, such an objection can be denied if CPTCR demonstrates that real-name collection is necessary for legal, contractual, or security reasons.
Relevant Legal References:
GDPR Article 21 – Right to Object to Processing
7. Conclusion
The real-name requirement at CPTCR is based on legitimate business needs, security considerations, and international regulatory obligations. CPTCR ensures that data collection remains minimal, necessary, and compliant with GDPR and other applicable laws.
If users have concerns about this policy, they may contact CPTCR’s Data Protection Officer (DPO) for further clarification. However, refusal to comply with the Terms of Service will result in account termination, as permitted under GDPR’s contractual obligation provisions.