Friday, May 27 2022

Automated and simplified interface reduces integration of external solutions needed to meet AML requirements

TAIPEI, April 27, 2022 /PRNewswire/ — Blockchain security company CoolBitX unveiled Sygna hubthe latest AML/CTF-focused product to help Virtual Asset Service Providers (VASPs) meet evolving crypto regulations.

The new comprehensive API-based solution provides an easy-to-use platform offering modular integration of optional AML services from industry leaders such as Chainalysis and Elliptic, including advanced blockchain analysis and filtering. sanctions, as well as Sygna Bridge, the Travel Rule protocol which is designed to be interoperable with other protocols, such as TRISA, via the Hub solution.

Evolution of the regulatory landscape for VASPs

Sygna was launched in 2019 in response to the Financial Action Task Force’s Recommendation 16 update which mandates compliance with travel rules for VASPs. Since then, he has established a Sygna Alliance network of VASP and has collaborated with the world’s largest AML companies, including On-chain analysis, Elliptical, CipherTrace, Merkle Science and ComplianceAdvantage.

“On the road to mass institutional adoption of crypto, integration remains a major challenge for the industry,” said Mriganka Pattnaik, co-founder and CEO of Merkle Science. “Travel Rule, Sanctions Screening and Blockchain Analytics all play a key role in combating illicit activity in crypto. The Sygna Hub platform enables integration and communication between parties previously siled from this goal and Merkle Science is pleased to be an active member of this initiative.”

With the latest FATF revisions and updates to its risk-based approach for virtual assets and VASPs adding new complexity to the cryptocurrency regulatory landscape, Sygna has broadened the scope of its service offering to better address the needs of crypto companies.

Michael OrFounder/CEO of CoolBitX, said, “The Sygna team has again demonstrated that they fully understand VASP compliance issues and how to mitigate them through intelligent product design. Sygna Hub represents our most ambitious AML effort to date. months of hard work, where we had to not only leverage our existing proprietary Sygna Bridge travel rules protocol, but also combine our strengths with industry leaders to create something unique for the greater good of the crypto industry as it deals with changing regulatory requirements.

Sygna Hub and Sygna Gate, its simplified browser-based version, are the end result of these efforts, providing VASPs with the tools to build a robust compliance system to meet their regulatory obligations.

Juntao ZhuCEO/Co-Founder of Hodlnaut, a Sygna Hub customer, said: “Hodlnaut is delighted to partner with Sygna to comply with regulatory changes in Singapore. We work tirelessly to deliver a great user experience and collaborating with Sygna will help us achieve the same goal.”

Sygna Hub key features

Sygna Hub aims to address the following current crypto compliance issues:

Hub’s built-in third-party blockchain analytics and sanctions screening services make it a great choice for VASPs operating in countries like Singapore and Japan with existing mature and sophisticated regulatory frameworks. Sygna Hub and Gate both offer the latest integrated AML blockchain analysis services from Elliptic, Chainalysis (KYT V1 and V2) and Merkle Science.

Sygna Bridge, the standalone VASP-focused travel rule protocol, is also integrated into Sygna platforms at the software level. Sygna has achieved live interoperability, offered through Gate and Hub solutions, with CipherTrace TRISA in February 2022and with similar cooperation with Shyft Network’s Veriscope targeted for Q2. Other leading travel rule solution providers are in the works to follow later this year.

Sygna previously adopted IVMS101, the industry messaging protocol and worked diligently to resolve the so-called onerous “sunrise problem”, which refers to uneven deployment of FATF-required travel rules regulations across member countries. As a result, Sygna customers and VASP counterparties using a different or non-existent travel rule protocol will still be able to exchange necessary data as various Hub features are released.

A growing number of jurisdictions such as Singapore, Swiss, Germany and Liechtenstein are beginning to require additional due diligence from VASPs, which has led to a growing demand for establishing proof of ownership of non-custodial wallet addresses.

To facilitate this identification, the new Sygna Private Wallet Ownership Tool (SPOT) from Sygna Hub is based on a “Satoshi testby requiring the owner of the non-hosted wallet address to perform an on-chain transaction to establish proof of ownership of the wallet.

Authorities around the world are cracking down on companies that misuse their customers’ data. As an on-premises only product, the Sygna Hub portal allows customers to manage all their customer information without the risk of exposure on external servers. All Sygna products are officially ISO 27001 certified and strictly follow ISMS standards, which can now be easily adopted by Sygna VASPs.

CoolBitX CEO Michael Or is available for media interviews.

About CoolBitX

CoolBitX Ltd. (CBX) is an international blockchain security company building the next-generation infrastructure needed to maximize the adoption of digital assets. Founded in 2014 by Michael Or and backed by SBI Holdings, CoolBitX provides solutions for a rapidly evolving blockchain industry to drive mass adoption of virtual assets through its two product lines: CoolWallet and Sygna. CoolWallet is a credit card sized hardware wallet that enables Bluetooth pairing with users’ mobile phones. Sygna’s range of regulatory compliance products are tailored to Virtual Asset Service Providers (VASPs), simplifying VASP compliance efforts through the use of efficient and secure technology. For more information on CoolBitX, visit https://coolbitx.com/.

About Sygna

Sygna is a range of AML compliance services created by CoolBitX based on FATF Recommendation 16 “Travel Rule” and other global virtual asset regulations. With three compliance solutions, Bridge (a first-to-market travel rule protocol), Gate (SaaS browser gateway) and Hub (integrated AML platform), Sygna aims to help VASPs meet the requirements of financial regulators simply and efficiently, while maintaining the highest information security standards to protect the privacy of user data. For more information about Sygna, visit https://sygna.io/

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SOURCECoolBitX

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