Uppsala Security, a provider of security tools and services for Crypto AML/CTF, Transaction Risk Management, Regulatory Compliance, and Transaction Tracking, announced that it has signed a Virtual Asset Customization (Consignment) contract with Korea Digital Asset (KODA).
Through this contract, KODA’s virtual asset consignment system “will be in charge of monitoring UPP, the token corresponding to Uppsala Security’s blockchain project — Sentinel Protocol.”
By using KODA’s services and thus complying with South Korea’s domestic special laws, Uppsala Security plans “to manage its virtual assets more transparently.”
Meanwhile, KODA has “introduced & implemented Uppsala Security’s virtual asset AML solutions since July 2022.”
Through access to Uppsala Security’s Threat Intelligence Database (TRDB), KODA “has strengthened Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) monitoring functions by checking in advance whether wallet addresses of deposited funds are flagged as blacklisted or suspicious in relation to the Dark Web or financial crimes/fraud.”
Cho Jin-seok, director of KODA, said:
“In order to accurately comply with the Special Act, it is essential to investigate the past transaction history of a wallet, that is, the deposit and withdrawal details, rather than just checking the owner of the wallet. However, in order to analyze the numerous wallet addresses of customers, even if existing AI based AML solutions are used, it still takes at least 5 minutes per wallet and thus can only process up to 96 cases in 8 hours of daily business.”
He also “acknowledged the difficulties faced by Virtual Asset Service Providers (VASPs) at the current moment” by saying”
“In addition, out of these 96 cases, threat wallets that require detailed analysis are likely to come out at a 1% rate, and it is inevitable for companies to invest manpower, cost, and time resources for this specific 1%.”
However, KODA has innovatively “enlarged the number of wallet surveys per person to at least 100,000 through Uppsala Security’s high-capacity virtual asset wallet monitoring solution (CTDS).”
Cho said:
“We have conducted pilot tests on KODA’s customer wallets, and satisfactory results have already been obtained.”
Patrick Kim, CEO of Uppsala Security, said:
“KODA’s Anti-Money Laundering and internal security system control is already operating at the level of existing financial institutions, and we decided to keep our virtual assets in KODA because KODA was the nation’s top trustee when it introduced its Anti-Money Laundering system. We hope that strategic collaborations and business synergies between the two companies will be introduced to the market as best practices for the industry’s regulation, security, and transparency.”
KODA is a virtual asset consignment service company “established by KB Kookmin Bank with blockchain technology company Hatch Labs and blockchain investment company Hashed.”
It is characterized by “providing one-stop digital asset trust specialized services to corporations and institutions.”
As covered, Uppsala Security built Sentinel Protocol, “the first crowdsourced Threat Intelligence Platform powered by artificial intelligence, blockchain technology, and machine learning.”
Supporting the framework is “a team of experienced cyber security professionals who have developed an award-winning suite of advanced tools and services for Crypto AML/CFT, Transaction Risk Management (KYC/KYT), Transaction Tracking, Regulatory Compliance, and Cybersecurity enabling organizations of every type and size to protect their crypto assets from malicious attacks and scams while meeting stringent regulatory compliance standards.”
Uppsala Security is “headquartered in Singapore, and has branch offices in Seoul, South Korea and Tokyo, Japan.”