SBI Crypto Exchange Integrates New Tech to Comply with FAFT Standards

VC Trade, the Japan-based crypto exchange introduced by SBI Holdings in 2018, is integrating new innovation to assist in complying with worldwide customer verification benchmarks issued by the Financial Action Task Force (FATF) in June.

The solution is given by blockchain security firm CoolBitX, which has created a wallet product based on its know-your-customer (KYC) and anti-money washing (AML) compliance-focused cryptocurrency transaction and security solution called Sygna.

According to a statement from CoolBitX on Thursday, SBI’s VC Trade is presently employing a customized form of the company’s wallet, CoolXWallet, which only permits clients to withdraw their digital currencies to their wallets after getting through “multiple layers” of KYC.

CoolBitX CEO and founder Michael Ou stated:

“The FATF has now set firm KYC/AML guidelines for the virtual asset industry, regulating VASPs [virtual asset service providers] in the same way as financial institutions. … In a major step towards safer and more wide-spread cryptocurrency adoption, we are proud to have partnered with SBI VC on CoolXWallet, a KYC/AML solution based on CoolBitX’s technology.”

“Sygna takes the responsibility of conducting KYC away from exchanges by ensuring that all wallet holders are fully KYC-ed through their wallet,” a representative said.

The early adoption of the Sygna-based arrangement by SBI’s VC Exchange represents a “first proof-of-concept” of the tech within the real-world, they stated. The company intends to provide the product to crypto exchange providers, institutions and people going forward.

Yoshitaka Kitao, the representative director, president, and CEO of SBI Holdings, stated:

“CoolXWallet has given SBI VC an easy way to protect our customers while complying with Japanese and international KYC standards. The borderless nature of digital assets requires a solution that isn’t bound by geographical boundaries, and because of that, we are excited to implement the wallet as a secure system to drive cryptocurrency adoption forward.”