CipherTrace To Ensure Safety of Rakuten Wallet’s Crypto Exchange

Rakuten Wallet, an offshoot of Japanese e-commerce firm Rakuten, has collaborated with blockchain security company CipherTrace to ensure that the forthcoming crypto exchange adheres with Anti-Money Laundering (AML) law.

CipherTrace— which builds cryptocurrency AML, forensics and regulatory surveillance tools— will operate towards enhancing the security of investors in Rakuten Wallet and also protect the exchange’s integrity and adherence to rules.

Regarding the partnership, Dave Jevans, CEO of CipherTrace, said

“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.”

The exchange will be launched by Rakuten Wallet in June. Its trading platform will enable customers to trade virtual assets through smartphone software. It is mentioned that opening an account will be free and customer money will be deposited in a cold wallet— a gadget which stores digital money without remaining linked to the internet.

In mid-April, Rakuten Wallet started allowing clients to enroll themselves for cryptocurrency trading facilities. A prospective client can register using Rakuten user ID and related bank account.

An official acquainted with the subject also informed Reuters in April that the Financial Services Agency (FSA) in Japan will necessitate cryptocurrency exchanges to reinforce their in-house monitoring of cold wallets.

The FSA allegedly tackles the challenges of maintaining the safety of virtual currencies and other threats to the nation by applying the latest rules as it plans to spur the fintech sector to galvanize economic development.