Uppsala, the popular decentralized tech-based cybersecurity firm, is looking to great the first-ever Anti-Money Laundering (AML) system in the crypto space. It plans to build this system on the Danal FinTech mainnet based on HyperLedger Fabric.
According to a Medium blog post on May 12, Uppsala has signed a contract with Danal, under which both firms will work together to establish an AML system. Previously known as PayProtocol, Danal FinTech is a well-known name in the South Korean market dealing majorly with payment integration.
How would it work
The blog post has also spelled out details about the contract between the two firms. According to it, Uppsala would design the AML product solution while Danal would be responsible for running it.
Expanding on how the AML product would work, the blog post reiterated that its functionalities would exceed those which existing financial institutions have implemented. So, this new AML design would be instrumental in regulating, tracking as well as analyzing all crypto transactions. This would effectively prevent any form of fraudulent or money laundering activities. In case there is any report of a suspected fraudulent activity, the Financial Intelligence Unit (KoFIU) would immediately take over.
Regulators and the crypto space
The entire crypto space has over time faced a lot of criticism from regulators and government agencies worldwide. This partnership further illustrates one of Danal’s aims, which is, to ensure the global acceptance of digital tokens. And the firm believes this can only happen if the crypto space and government agencies decide to reach a consensus.
To that end, Danal has combined its top-notch payment system with blockchain technology creating the hi-speed and highly secured Hyperledger mainnet. On the other hand, Uppsala designs its AML security solution with machine learning and artificial intelligence (AI) algorithms. Besides, it provides customizable solutions with an innovative fault-finding function that can identify and reduce money laundering and terrorist financing.
Notably, Uppsala first came into the limelight last month garnering approval for its security and blockchain-based technical capabilities. It was also the recipient of the “2020 Asia-Pacific Blockchain and Cryptocurrency Security Technology Innovation Award”.
Before this collaboration, Danal has partnered with top industry partners such as Kyobo Bookstore, CU, Domino Pizza, Shinsegae SSG Pay, etc. Its focus lay on providing users with “more convenient and user-friendly payment experience in their day-to-day life”
What the partners said
Speaking on the partnership, Ted Hwang, the CEO of Danal FinTech, pointed out that before expanding overseas, they would ensure important policies were in place. This, in essence, would ensure “a safe and compliant virtual asset settlement service environment”.
The Danal CEO also stated their objective to promptly respond to changes established by major countries in the regulatory environment. According to him, the alliance with Uppsala was the first step towards that goal.
Founder of Uppsala, Patrick Kim, expressed his hope to expand their business by “jointly providing ready solutions for payment companies using the Hyperledger Fabric framework.”
Earlier this year, we had reported Singapore enacting new AML regulations for crypto firms. Last year we covered the story of crypto businesses leaving the European Union markets due to its AML regulatory framework.