One of the first crypto exchanges to implement a KYC system to comply with FATF requirements
VC Trade, a cryptocurrency exchange launched by Japan’s SBI Holdings last year, has integrated technology to ensure it meets international client verification standards set by the Financial Action Task Force (FATF), CoinDesk writes..
The solution is provided by CoolBitX, which has developed the wallet with an anti-money laundering and user authentication focus. An individual version of the software was transferred to VC Trade, which will allow limiting the withdrawal of funds by clients from the exchange until they pass “several levels” of identity verification.
“The FATF has approved the KYC / AML guidelines for the virtual asset industry, imposing the same requirements on its members as for other financial institutions. This is an important step towards making cryptocurrencies more secure and widespread, ” said CoolBitX founder Michael Ou. “Our solution takes the responsibility of the exchanges to identify customers, ensuring that all wallet holders are fully vetted.”.
The company expects that in the future its technology will be used by other exchanges and other representatives of the industry, which will also have to comply with the FATF requirements..
“CoolXWallet has provided SBI VC with an easy way to protect customers while adhering to Japanese and international identity standards,” said Yoshitaka Kitao, CEO of SBI Holdings. “The limitless nature of digital assets requires a solution that is not geographically constrained. We are pleased to introduce the wallet into our own security system in order to facilitate the further spread of cryptocurrencies. “.
Previously, participants in the cryptocurrency industry protested over the problematic implementation of the FATF requirement on the transfer of client information between exchanges when making transactions..