Increasing Transparency in Crypto and Digital Asset Trading, Upbit Supports VerifyVASP to Become a GLEIF Validation Agent - Grow Info Berita Terupdate
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Increasing Transparency in Crypto and Digital Asset Trading, Upbit Supports VerifyVASP to Become a GLEIF Validation Agent

Increasing Transparency in Crypto and Digital Asset Trading

Based RegTech solution provider who is a Virtual Asset Service Provider (VASP) has joined the Global LEI System. as a Validation Agent. VerifyVASP is the first Validation Agent operating exclusively in the crypto and digital asset trading space.

By carrying out this role, VerifyVASP is now able to quickly and efficiently assist Legal Entity Identifiers (LEI) for VASP users, including the Travel Rule Financial Action Task Force (FATF) which has the end result of a new level of transparency of trading entities in cryptocurrencies and assets. virtual reality that spans across borders and jurisdictions.

This Travel Rule has the objective of mitigating the risks associated with the transfer of virtual assets, especially in the identification of ownership. This requires the VASP to obtain, store, and transmit information to the recipient that is necessary in connection with the transfer of virtual assets in order to identify and report suspicious transactions.

“As a Validation Agent, we can use LEI data to streamline VASP identification and facilitate partner identification, to support our users for current and future compliance,” said Shihyun Chia, CEO at VerifyVASP.

“Counterparty Due-diligence is one of the main challenges faced by VASPs because of the level of information required by the FATF Travel Rule. LEIs help support wider adoption in virtual asset trading and identifying consistent, high-quality and globally recognized entities is very helpful for financial market watchdogs and other participants to assess exposure across markets,” he added.

Cross Boundary

“The crypto industry forms a cross-border market and is growing rapidly. It is hoped that VerifyVASP, with its industry-leading technologies and solutions, recently joined as an LEI Validation Agent, will enable VASPs and other market participants to establish a solid foundation of trust in the global market,” added Sirgoo Lee, CEO of Dunamu, exchange operator South Korea's largest digital asset, Upbit.

“There is currently no way to determine whether the same Virtual Asset Service Provider has been registered with multiple regulators. This causes uncertainty for national authorities as well as all participants in the global financial system," added GLEIF CEO Stephan Wolf.

If all jurisdictions identify registered service providers and other intermediaries through LEIs, and LEIs are exchanged consistently across supervisory authorities, we can create a digitally-enabled financial ecosystem. The latest update from the European Union brings us one step closer to achieving this.

By adopting the role of Validation Agent, the marketplace helps facilitate legit digital asset transactions from service providers and crypto asset issuers” The GLEIF Validation Agent Framework enables financial institutions and other supervised organizations involved in the verification and validation of legal entity identities to obtain and maintain an LEI for their users in cooperation with accredited LEI Issuers. Validation Agencies can formulate this framework by leveraging their Know Your Customer (KYC) user identification procedures, which have a user orientation, or user information update process.

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