Blockchain security company CoolBitX and blockchain analytics startup Elliptic have joined forces to provide financial service providers with a complete solution to fulfill anti-money laundering (AML) and compliance obligations.
Founded in 2014, CoolBitX is a FinTech firm specializing in manufacturing secure, US-patented digital asset hardware and developing smart contract platforms. The goal of the company is to build the infrastructure necessary to close the gap between the mainstream market and crypto industry. CoolBitX recently released Sygna Bridge 2.0 which supports the InterVASP Messaging Standard (IVMS101), the Joint Working Group’s unifying messaging standard, and comes after months of technical improvements and rigorous testing with VASP partners in Japan, Korea, and Taiwan.
Elliptic makes cryptocurrency transaction activity more transparent and accountable. The company believes that illicit activity in cryptocurrencies must be disrupted to stop criminals from undermining the ideals on which cryptocurrencies are built. Elliptic’s proprietary database delivers auditable proof of identity for millions of bitcoin and ethereum addresses across thousands of real world entities.
The partnership will see the industry’s first operational Travel Rule solution, Sygna Bridge along with Elliptic’s crypto transaction and wallet screening offered to Virtual Asset Service Providers (VASPs) to comply fully with the FATF’s AML and combating the finance of terrorism (CFT) regulations.
“The blockchain and cryptocurrency industry is at a major crossroad. As the Financial Action Task Force (FATF) continues to push its cryptocurrency guidance across the globe, compliance and preventing criminal activity can feel extremely daunting for VASPs,” said Michael Ou, CEO of CoolBitX. “The truth is, ‘Travel Rule’ compliance and blockchain analytics to track criminal activity are two sides of the same coin. Having just one or another paints an incomplete picture. Elliptic’s reputation for helping financial institutions and cryptoasset companies to manage risk through their tracking tools is second to none. With the full range of tools from Sygna and Elliptic, we are thrilled to provide clients with the ability to protect themselves from violating any AML/CFT laws and regulations, allow them to assist regulators to combat illicit money laundering activities, and stay compliant with changing regulations.”
Last month , the FATF reviewed the global progress of the Travel Rule and subsequently released its highly anticipated report, the FATF’s 12-Month Review of the Revised FATF Standards on Virtual Assets and Virtual Asset Service Providers, that assessed the progress that countries and the private sector have made in implementing its guidance on virtual assets. According to the report, the FATF is encouraged by “progress in the development of technological solutions to enable the implementation of the Travel rule, even if solutions are yet widely adopted and some practical implementation challenges remain. In particular, it notes important industry advancements in the development of common Travel Rule messaging standards, and it “calls upon the VASP sector to redouble its efforts” to adopt technical solutions for global compliance.
“The July 2020 FATF report highlights, among other things, that it won’t accept claims of technical infeasibility as an excuse for non-compliance with the Travel Rule – and that it expects VASPs to implement solutions,” said David Carlisle, Head of Policy and Regulatory Affairs at Elliptic. “Now through our partnership with CoolBitX, we can offer customers Sygna Bridge alongside Elliptic’s crypto risk monitoring solutions to help VASPs take proactive steps in meeting high AML/CFT standards, wherever they operate.”
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