The forthcoming EU MiCA regulation has launched the platform into a new operating landscape that requires uprated validation capabilities
STEX, a cryptocurrency exchange has partnered with KYC and AML platform Ondato in order to ensure the exchange’s continued customer growth within a compliance environment of imminent new EU regulation of crypto-assets.
The crypto trading platform, which has more than 300,000 registered users and more than 400 crypto coins and tokens listed, is registered as a Money Services Business (MSB) with the US Financial Crimes Enforcement Network (FinCEN).
STEX will leverage Ondato’s remote identity verification solutions and KYC processes to facilitate its future operations in the European Union as the jurisdiction negotiates a new framework for crypto-assets, the Markets in Crypto-Assets (MiCA).
MiCA complements existing AML rules and aims to enhance financial stability and investor protection in Europe by requiring all cryptocurrency wallets to implement KYC procedures, among other rules. The regulation is expected to be finalised later this year and come into effect in 2023.
The forthcoming EU MiCA regulation has launched the platform into a new operating landscape that requires uprated validation capabilities. Ondato will fill that gap so that the exchange can meet all its new requirements and any emerging needs for the future.
In order to get accurate customer validation, STEX already offers reduced trading fees for certain users, with the size of the reduction depending on the verification level.
Vadym Kurylovych, Chief Executive Officer at STEX, said: “Regulation is a vital aspect in the growing maturity of the crypto space and we welcome it. By partnering with Ondato today, we gain access to the most advanced customer validation tools available. The move positions us for further growth, puts us well ahead of the EU’s regulatory timetable and positions STEX to be a winner in the changes ahead in the European market.”
Ludas Kanapienis, Chief Executive Officer and co-founder of Ondato, commented: “We are still near the start of the crypto-asset revolution and this new relationship with STEX progresses Ondato’s ambitions to be the platform of choice in this space. By partnering with STEX we gain an important new user community that is helping us align with a wider view of compliance. We are proud of the flexibility of Ondato OS as we’ve stretched to these new markets. The field of digital assets is exciting and rapidly changing, and we are showing that Ondato is a leader in any field that requires robust and flexible compliance solutions.”
The new Ondato OS offers financial institutions a significantly better understanding of their exposure, with risk-based management of new and existing customers. The KYC and AML compliance solution provides enhanced process automation for greater efficiency and lower operating costs, minimizing the risk of interventions and fines from regulatory authorities.