Singapore November 12, 2020 - CYBAVO and Merkle Science have announced today a strategic partnership that will enable both companies to strengthen their customers’ protection against money laundry in the digital asset space.
Multiple hacking attacks in recent months against major cryptocurrency exchanges, such as KuCoin, - which led to losses of 150M USD, have again highlighted some of the pressing challenges that the digital currency ecosystem is facing. From stringent regulations to hacks, virtual asset service providers today require solutions that not only help them in preventing cryptocrime but also protect them against potential hacking attempts.
Companies like CYBAVO, a leading digital asset custody provider, have developed advanced custody technology to help Virtual Asset Service Providers (VASPs) protect their digital assets and to eliminate the risk of theft. However, not all cryptocurrency exchanges have such custody technology in place and are exposed to increasingly sophisticated hacks targeting them.
Cryptocurrency stolen from digital exchanges is just a drop in the ocean of assets used for money laundry or related to other criminal activities. It is in this context where companies like Merkle Science, an industry leader in regulation technology, provide blockchain transaction monitoring and intelligence solutions for cryptoasset service providers.
The agreement signed between Merkle Science and CYBAVO will enable both companies to join efforts in the fight against money laundry in the crypto space, by sharing malicious address intelligence and by pinpointing VASPs the risks associated with certain addresses. This requirement is becoming increasingly common by regulatory authorities to assign operating licenses in the different jurisdictions. Companies like Merkle Science and CYBAVO can help VASPs to be regulatory compliant by providing features to deliver them the right knowledge about the source and usage of their funds.
CYBAVO VAULT recently added AML/CFT capabilities, like deposit and withdrawal address blocking list to detect high-risk addresses associated with malicious activities, for both incoming deposits and outgoing withdrawal transactions. CYBAVO relies on different intelligence sources, and this agreement between Merkle Science and CYBAVO will widen the accuracy and reliability of both platforms.
“As the industry matures and regulators get involved, compliance-ready solutions for digital asset management are not only an option, but a requirement for VASPs.” - stated Paul Fan, CEO of CYBAVO. - “Security and compliance are longer independent concepts, they are now intertwined. Working together with industry leaders like Merkle Science will benefit VASPs providing full visibility and control over their funds flow, having a very positive impact on their compliance readiness.”
“With rising hacking attacks and increased scrutiny from law enforcement agencies, VASPs need holistic solutions that not only help them in monitoring cryptocrime on their platform but also provide security to their digital assets. Merkle Science and CYBAVO’s joint platform will enable VASPs to better protect their customers’ investments while diligently preventing cryptocrime.”, declares Mriganka Pattnaik, Co-founder and CEO at Merkle Science.
About CYBAVO CYBAVO Pte. Ltd. provides insured digital asset custody and management solutions for enterprises and financial institutions, such as cryptocurrency exchanges, digital asset managers or custodians. The company was founded in 2018 by a team of experts from cybersecurity, blockchain and digital currency industries. CYBAVO technology is already protecting more than USD 7.5B worth in transactions of dozens of companies globally.
About Merkle Science Merkle Science provides blockchain transaction monitoring and intelligence solutions for cryptoasset service providers, financial institutions and government agencies to detect, investigate and prevent the use of cryptocurrencies for money laundering, terrorist financing and other criminal activities. Merkle Science is headquartered in Singapore with offices in Bangalore, Seoul and Tokyo and backed by Digital Currency Group, Kenetic, SGInnovate and LuneX.
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