SBI Virtual Currencies

SBI Virtual Currencies Deploys CoolBitX’s Security Solution

SBI Virtual CurrenciesIn early 2018, SBI Holdings launched its digital asset exchange SBI Virtual Currencies, designed to be a reliable exchange for both its institutional customers and individual digital asset buyers in Japan. SBI Holdings’ subsidiary SBI Securities is Japan’s largest online securities company with more than 4 million brokerage accounts.

SBI Virtual Currencies (SBI VC), the leading Japanese cryptocurrency exchange and a subsidiary of SBI Holdings, has deployed CoolBitX’s most recently launched blockchain security product, Sygna – a KYC/AML compliance-focused virtual asset transaction and security solution for VASPs, individuals, and institutions.

The operator was already using CoolBitX’s Bluetooth-enabled mobile hardware wallet for digital assets, CoolWallet S, which was developed in 2018. SBI VC uses a customized version of the flagship wallet, where users store their private keys and SBI VC addresses are linked to the users’ exchange accounts, allowing customers to only withdraw digital assets to their wallets following multiple layers of KYC.

Michael Ou, Founder and CEO of CoolBitX, said:

“The FATF has now set firm KYC/AML guidelines for the virtual asset industry, regulating VASPs in the same way as financial institutions. Central to the FATF guidelines is the Task Force’s anti-money laundering mandate and FATF Recommendations 15 and 16, already highlighted at the
Private Sector Consultation Forum hosted by the FATF in Vienna. 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. This partnership with SBI VC is a crucial aspect to having and maintaining better security on the exchange.

Currently, most KYC/AML responsibilities lie with the exchanges to ensure all transactions and individuals are legitimate. CoolBitX is happy to work with SBI VC by providing the CoolXWallet, and help in SBI VC’s effort to implement best practices in the area of KYC/AML for digital assets.”

Yoshitaka Kitao, Representative Director, President & CEO of SBI Holdings, Inc., commented:

“Back in 2017, Japan was the first jurisdiction in the world to define Virtual Currency (Crypto-asset) as a legal term and establish clear regulatory guidance for Virtual Asset Service Providers. Very early on, the Financial Services Agency wanted to provide protection to crypto-asset service customers and to combat money laundering and terrorist financing.

Using CoolBitX’s technology, CoolXWallet has given SBI VC an easy way to protect our customers while complying with Japanese and international KYC standards. The borderless nature of digital assets requires a solution that isn’t bound by geographical boundaries, and because of that, we are excited to implement the wallet as a secure system to drive cryptocurrency adoption forward.”

In 2018, SBI Virtual Currencies (SBI VC) joined Ripple’s xRapid ecosystem to help institutions source liquidity for cross-border payments between Japan and the rest of the world. Ripple integrated SBI VC’s APIs so that xRapid users can convert XRP to JPY and JPY to XRP instantly through SBI VC. The high cost of liquidity inherent to cross-border payments is significantly
decreased with xRapid.

Earlier this year, SBI bought a crypto wallet firm through its corporate cousin, SoftBank, which
invested in Swiss wallet developer Breadwinner, with terms undisclosed. BRD is now part of the SBI Crypto Investment portfolio, alongside Japanese exchange VCTrade, and banknote platform Tangem, which raised $15 million from SBI with an objective for a breakthrough in the mass adoption of the blockchain technology.