Tokyo based crypto exchange company that was started by SoftBank last year, VC Trade, has collaborated with blockchain security company CoolBitx for KYC.
CoolBitX made the announcement alongside the launch of Sygna, its know-your-customer (KYC) and anti-money laundering (AML) compliance-focused cryptocurrency transaction and security solution. The solution removes the burden of conducting KYC from exchanges by ensuring that all wallet holders are fully KYC-ed through their wallet.
Founder and CEO of CoolBitX, Michael Ou, said that the Financial Action Task Force (FATF) has set firm KYC/AML guidelines for the virtual asset industry and the new technology will help VC Trade to navigate them.
Earlier this year FATF announced its new guidelines for 37 countries which included KYC and other instructions. Now VC Trade, which is a subsidiary company of SoftBank, will use CoolBitx to confirm KYC details of users.
According to CoinDesk, VC Trade, which officially launched in March, was one of the early adopters of the first wallet developed by CoolBitX, the CoolWallet S.
VC Trade is using a customized version of the flagship wallet, named CoolXWallet, which allows customers to only withdraw digital assets to their wallets following multiple layers of KYC. Michael explained:
“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.”
CoinDesk reports that the two companies said that the early adoption of the Sygna-based solution by VC Trade represents a ‘first proof-of-concept’ of the technology in the real-world.
Yoshitaka Kitao, Representative Director, President & CEO of SBI Holdings, Inc said that using CoolBitX’s technology, CoolXWallet has given SBI VC an easy way to protect their customers while maintaining Japanese and International security standards.