Uppsala Security, a global blockchain security company, officially announced on the 5th that it has signed a contract to build a’virtual box-mounted AML’ solution that complies with the amendment to the Special Act on Coin&Coin Exchange.
Uppsala Security holds 57 million of the latest security threat information collected on the basis of collective intelligence in its virtual asset threat database (TRDB) and shares it in real time. It has been selected as a company and has completed the advancement of AI machine learning service of the virtual asset wallet risk assessment solution CARA (Crypto Analysis Risk Assessment) by receiving dark web-related threat data from’NSHC’.
According to the Uppsala Security press release, Coin&Coin Exchange has introduced various security services such as KT FSCD (Financial Security Data Center) and BITGO Multisig Wallet, and is the 13th exchange that received ISMS approval before the enforcement of the revised special law.
Uppsala Security chose ▲Information Protection Management System (ISMS) certification ▲KYC ▲existing financial sector (legal currency) AML ▲Virtualized AML as a prerequisite for complying with the amendment to the Special Funds Act. He stressed that the key issue is to build a’virtual boxed AML’ system based on the’Risk Based Approach (RBA)’.”
Existing financial sector (legal currency) AML is a suspicious transaction report prepared by first verifying the identity of service users through KYC (customer identification verification procedure), and comprehensively analyzing whether suspicious activities such as money laundering on cash deposited in banks (STR) refers to all procedures in the series of reporting to the Financial Information Analysis Agency (koFIU).
However, since this is limited to reporting suspicious transactions in legal currency (cash), it means that a virtual asset business operator (VASP) must have a separate’virtual asset AML’ system in order to comply with the amendment to the Special Act. In other words, through the virtual asset AML solution, real-time monitoring of blacklist wallet addresses that are involved in phishing, fraud, and hacking, etc., and when suspicious transactions are found, create a virtual asset suspicious transaction report (STR) with reasonable evidence within 3 business days. It must be submitted to koFIU.
An official of Uppsala Security said, “In particular, in the case of exchanges, since STR must be reported to koFIU after separately checking whether or not money is laundered for transactions of listed virtual assets on each mainnet, from a security perspective, virtual asset threat blacklists, databases, etc. It is essential that the AML-related system is separated from the external network (Internet) and securely protected in the corporate internal network.” Said.
“Coin&Coin Exchange has built its own cryptocurrency threat database (TRDB) in its internal network through this contract, so it is possible to identify risky wallet addresses in real time and track suspicious transactions by maintaining a blacklist database of wallet addresses for virtual assets. It becomes possible.”
Minwoo Koo, head of Uppsala Security’s Korean branch, pointed out, “Even if you have built AML for KYC and fiat currency, if you do not build a separate virtual asset AML, the report submitted to KoFIU will eventually be a half STR.” In addition to being certified by ISMS, KYC and the AML system of existing financial sectors were introduced through Octa Solutions. In addition, through this contract, the company’s internally-built virtual asset AML solution,’Threat Reputation Database On-premise Management System (TOMS)’, was established, thereby meeting all the conditions specified in the revised special law.”
Hyeon-Pung Jeon, CEO of Coin Encoin said, “The Coin-Encoin Exchange has focused all of its capabilities with the protection of customers’ safe assets as a top priority. Through this AML contract with Uppsala Security, we hope to become an exchange that can give users more trust by complying with all necessary policies and preventing money laundering as a virtual asset provider (VASP). “I said.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.