A subsidiary of Japanese e-commerce giant Rakuten, Rakuten Wallet, has partnered with blockchain security firm CipherTrace to assure Anti-Money Laundering (AML) compliance for the company’s upcoming crypto exchange. The development was announced in a press release shared with Cointelegraph on May 29.
CipherTrace — which develops cryptocurrency AML, forensics and regulatory monitoring solutions — will work on improving the safety of Rakuten Wallet’s investors as well as the protection of the integrity and compliance of the exchange. Dave Jevans, CEO of CipherTrace, commented on the cooperation:
“We have made significant strides as an industry to make the cryptocurrency market grow and become more trustable. Rakuten Wallet cares about its customers and will work with CipherTrace to make sure that exchanges have optimal protections for mainstream adoption. It is our hope that proper compliance, transparency and increased trust will lead to more and more participation in the global crypto market.”
Rakuten Wallet plans to launch the exchange in June. According to the company, its trading platform will allow users to trade digital assets via a smartphone application. Opening an account will reportedly be free of charge and customers’ funds will be stored in a cold wallet — a device for storing digital currency that is not connected to the internet.
Rakuten Wallet had already opened its online account registration process for cryptocurrency trading services in mid-April, requiring traders to register with a Rakuten user ID and associated bank account.
Also in April, a source familiar with the matter told Reuters that Japan’s Financial Services Agency (FSA) will require cryptocurrency exchanges to strengthen their internal supervision of cold wallets. By implementing the new regulation, the FSA purportedly addresses the difficulties of ensuring the security of digital currencies and other risks for the country, as it intends to boost the fintech industry to stimulate economic growth.