Taiwanese blockchain startup, CoolBitX, is on track to pursue its AML/KYC product for crypto exchanges after it raised $16.75 million in its latest seed round. The firm currently offers a digital currency wallet dubbed ‘CoolWallet’ but sought to scale its services range in line with the Financial Action Task Force (FATF) ‘travel rule’.
CoolBitX has since embarked on exploring new markets with the ‘Sygna Bridge’ solution for compliance in crypto operations. This innovation already attracted a number of small exchanges like Bitsonic and Coincheck but is yet to be integrated with high volume platforms.
Basically, the crypto exchanges and their clients can use Sygna Bridge to share personally identifiable information needed for KYC/AML through an API. But most importantly, Sygna Bridge facilitates encrypted data that can only be accessed by the crypto exchanges through a private key.
Asian Financial Giants on Board
CoolBitX managed to bring notable financial players like SBI Holdings Inc to the table; the conglomerate had also participated in the $13 million initial seed round in 2018. Other players who contributed to the $16.75 million include Bitsonic, Taiwan’s National Development Fund and Money Inc.
This new capital inflow raised CoolBitX’s valuation to $91 million according to the company’s CEO, Michael Ou. He added that this milestone is a signal of the times ahead in crypto;
“The investment shows that investors understand how global regulation and the tools necessary for virtual asset service providers to comply is key for crypto to shed its negative reputation, for institutional money to flow in, and for the industry to grow,”
CoolBitX Growth Strategy in 2020
The Asian startup is looking to venture into new territories with Japan at the top of the list. Michael Ou said this will be a good challenge for Synga Bridge given the advanced crypto regulations;
“Sygna’s progress has been in line with the strides made in crypto KYC/AML in various Asian jurisdictions, especially Japan. As such, CoolBitX will be establishing a Sygna entity in Japan this year as we are committed to having open dialogues with local stakeholders.”
Furthermore, CoolBitX will play an important role in raising crypto participation as a regulated environment with efficient checks builds more trust. Ou noted that they have a competitive edge in this market given Sygna Bridge went live back in October and has ‘proved’ its value. Other players with a similar KYC/AML solution for crypto compliance include CipherTrace and Shyft Network.