CoolBitX, has successfully secured $16.75 million in a Series B funding round. The funding will help provide FATF-compliant solutions to virtual asset service providers (VASPs) around the world through their service, Sygna. The funding round, led by Japan’s financial group SBI Holdings, will help expand Sygna beyond the Asia-Pacific (APAC) region. In addition to SBI Holdings, other participants include the National Development Fund of Taiwan, BitSonic and Monex. Sygna Bridge is a messaging service that allows virtual asset service providers to effortlessly share all required complaince data to meet global regulations standards.
Founder and CEO of CoolBitX, said, “We are thrilled and encouraged by the support that we have received from our wider community of investors and partners on our journey. The blockchain and cryptocurrency industry is at a critical juncture. In the global blockchain race, the rate of adoption and innovation in Asia is undeniable… Jurisdictions that have passed bills defining a clear set of rules for the industry — especially those surrounding KYC and AML — have seen major players in traditional finance enter the space, providing a clear blueprint for regulators around the world. Through Sygna and CoolWallet S, we’re proud to develop the tools and infrastructure necessary to bridge the gap between the mainstream market and crypto industry. This latest funding round is a testament to our vision to help the industry mature and foster the mass adoption of virtual assets.”
CoolBitX CEO Michael Ou (center) celebrates the Series B funding with his team and new investor Bitsonic’s CEO Jinwook Shin( far-right)
In June 2019, the Financial Action Task Force (FATF) released its latest standards for combating money laundering and terrorist financing. This requires member countries to ensure that virtual asset service providers (VASPs), mainly crypto exchanges, comply with Recommendation 16, or the “Travel Rule”.
The rule requires VASPs to implement KYC throughout all transactions and collect identifiable user information. In October 2019, Sygna Bridge introduced a network alliance to provide VASPs with a simple and cost-effective solution to comply with the Travel Rule.
More than 10 exchanges in Japan, Korea, and Taiwan have signed Memorandums of Understandings (MOUs) with CoolBitX, joining a consortium of VASPs to begin or consider implementing Sygna Bridge. Currently, the consortium, named the Sygna Alliance, includes SBI VC Trade (JP), Coincheck (JP), Bitbank (JP), DMM Bitcoin (JP), BITpoint (JP), BitSonic (KR), MaiCoin (TW), BitoPro (TW), Ace (TW), and other exchanges throughout the APAC region, some of which have begun implementing or testing Sygna Bridge within their own infrastructures.
CoolBitx is building the infrastrucuture to bring crypto to mainstream with Bluetooth hardware wallet, coolwallet S, coolbitx