Uppsala Security, a provider of award-winning security tools and services for Crypto AML/CTF, Transaction Risk Management, Regulatory Compliance and Transaction Tracking has announced a partnership with CODE, a South Korean-based virtual asset service provider (VASP) compliance solution.
As part of this partnership, CODE has “launched a new product called Protector, which is a Blacklist Wallet Address Detection System designed to enhance transaction risk management, regulatory compliance, and transaction tracking for virtual asset service providers.”
This will enable CODE’s member VASPs “to identify and block the risk of external wallet addresses when depositing and withdrawing virtual assets.”
The Protector system will “offer double-verification of blacklisted wallets, categorizing them into white, grey, and black based on their level of risk.”
The system will “block blacklisted wallet addresses and support safer virtual asset transactions. CODE’s member VASPs will be able to manage the status of travel rules and virtual asset wallet address risks through the Travel Rule Status Management System provided by CODE.”
Uppsala Security has “developed the Threat Reputation Database (TRDB), which contains categories such as fraud, gambling, Darknet, and phishing.”
The TRDB is “crowdsourced, which means that it is updated regularly with real-time information from a variety of sources, including the Office of Foreign Assets Control (OFAC) list and other blacklists related to domestic incidents.”
This ensures “that the TRDB is highly accurate and has global coverage and credibility.”
According to Uppsala Security’s Korea Country Manager, Koo Min-woo:
“Our blacklist database is organized into 84 blacklist categories, including data-related crime categories, to quickly identify any fraudulent activity.”
In addition, Uppsala Security’s virtual asset damage response center, CIRC, has “received over 1,700 reports of cumulative damage worth around 482 Billion KRW, as stated in the recently released ‘Domestic Virtual Asset Fraud Crime Damage Report 2022’.”
CODE’s CEO, Lee Sung-mi, said:
“We will contribute to an environment where member companies can focus on their business while complying with regulations more easily and safely through the introduction of a blacklist wallet address detection system.”
With the rapid growth of the virtual asset market, “ensuring the safety of transactions and compliance with regulations is essential.”
The launch of Protector will further “strengthen CODE’s position as a trusted compliance solution for VASPs in South Korea.”
As noted in the update, CODE was “co-founded by three Korean virtual asset exchanges (Bithumb, Coinone, Korbit), and is the sole Travel Rule consortium in Korea.”
It provides VASP “with specialized technology solutions and customized compliance services in accordance with global Travel Rule standards that meet the requirements of the Financial Action Task Force(FATF) and regulators.”