VC Trade, the Japan-based crypto exchange launched by SBI Holdings last year, is integrating new technology to help it comply with international customer verification standards issued by the Financial Action Task Force (FATF) in June.
The solution is provided by blockchain security company CoolBitX, which has developed a wallet product based on its know-your-customer (KYC) and anti-money laundering (AML) compliance-focused cryptocurrency transaction and security solution called Sygna.
According to an announcement from CoolBitX on Thursday, SBI's VC Trade is now using a customized version of the company's wallet, CoolXWallet, which only allows users to withdraw their crypto assets to their wallets after completing "multiple layers" of KYC.
Michael Ou, founder and CEO of CoolBitX, said:
Effectively, a representative told CoinDesk, "Sygna takes the responsibility of conducting KYC away from exchanges by ensuring that all wallet holders are fully KYC-ed through their wallet."
The early adoption of the Sygna-based solution by SBI's VC Trade represents a "first proof-of-concept" of the tech in the real-world, they said. The firm aims to offer the product to crypto exchange providers, institutions and individuals going forward.
Yoshitaka Kitao, representative director, president and CEO of SBI Holdings, said:
Japanese street crowd image via Shutterstock
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