STEX beefs up crypto platform compliance ahead of EU’s MiCA regulation

Rick Steves

The forthcoming EU MiCA regulation has launched the platform into a new operating landscape that requires uprated validation capabilities

STEX, a cryptocurrency exchange has partnered with KYC and AML platform Ondato in order to ensure the exchange’s continued customer growth within a compliance environment of imminent new EU regulation of crypto-assets.

The crypto trading platform, which has more than 300,000 registered users and more than 400 crypto coins and tokens listed, is registered as a Money Services Business (MSB) with the US Financial Crimes Enforcement Network (FinCEN).

STEX to leverage Ondato’s KYC and AML solutions

STEX will leverage Ondato’s remote identity verification solutions and KYC processes to facilitate its future operations in the European Union as the jurisdiction negotiates a new framework for crypto-assets, the Markets in Crypto-Assets (MiCA).

MiCA complements existing AML rules and aims to enhance financial stability and investor protection in Europe by requiring all cryptocurrency wallets to implement KYC procedures, among other rules. The regulation is expected to be finalised later this year and come into effect in 2023.

The forthcoming EU MiCA regulation has launched the platform into a new operating landscape that requires uprated validation capabilities. Ondato will fill that gap so that the exchange can meet all its new requirements and any emerging needs for the future.

In order to get accurate customer validation, STEX already offers reduced trading fees for certain users, with the size of the reduction depending on the verification level.

Vadym Kurylovych, Chief Executive Officer at STEX, said: “Regulation is a vital aspect in the growing maturity of the crypto space and we welcome it. By partnering with Ondato today, we gain access to the most advanced customer validation tools available. The move positions us for further growth, puts us well ahead of the EU’s regulatory timetable and positions STEX to be a winner in the changes ahead in the European market.”

Ludas Kanapienis, Chief Executive Officer and co-founder of Ondato, commented: “We are still near the start of the crypto-asset revolution and this new relationship with STEX progresses Ondato’s ambitions to be the platform of choice in this space. By partnering with STEX we gain an important new user community that is helping us align with a wider view of compliance. We are proud of the flexibility of Ondato OS as we’ve stretched to these new markets. The field of digital assets is exciting and rapidly changing, and we are showing that Ondato is a leader in any field that requires robust and flexible compliance solutions.”

The new Ondato OS offers financial institutions a significantly better understanding of their exposure, with risk-based management of new and existing customers. The KYC and AML compliance solution provides enhanced process automation for greater efficiency and lower operating costs, minimizing the risk of interventions and fines from regulatory authorities.

Read this next

Digital Assets

Zero Hash obtains AUSTRAC registration in Australia

Seed CX is expanding the reach of its crypto settlement solution, dubbed ‘Zero Hash,’ which has registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a digital currency exchange provider.

Digital Assets

UK advertising watchdog slams Arsenal over misleading crypto ads

The UK advertising watchdog has reprimanded Arsenal Football Club for promoting crypto assets without warning fans of the potential associated risks.

Retail FX

Swissquote profit slips as crypto revenue falls by two thirds

Swissquote Group, Switzerland’s provider of online trading services, reported that its H1 revenues dropped by nearly a quarter from a year ago as clients’ interest in crypto trading stagnated.

Digital Assets granted approval to operate business in Cayman Islands, one of the longest-established crypto platforms, has obtained a new registration in the Cayman Islands under the Virtual Asset Services Providers Act.

Executive Moves

United Fintech hires Mitch Vine and Danny Finnerty to expand US footprint

“United Fintech’s expansion in the US is pivotal to our mission of helping financial institutions digitize and gain access to best in class capital markets focused technology.”

Digital Assets

Ankr backed by Binance Labs after several initiatives in support of BNB Chain

Ankr has made a series of upgrades to the BNB Chain, including Erigon, the Archive Node, and the latest BNB Application Sidechain (BAS) scalability solution.

Retail FX

Financial Commission terminates membership of LordFX

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has expelled forex brokerage LordFX from its membership, according to a FinaCom statement.

Industry News

Match-Prime Liquidity sponsors Cypriot football club Omonoia FC

“We feel privileged to support Omonoia as it’s one of the largest teams in Cyprus, fandom size-wise, and we know it has a special connection with its supporters.”

Institutional FX

XTB’s X Open Hub adds 30 cryptos to white label offering for brokers

Its solutions include deep institutional liquidity on more than 5,000 global instruments, such as indices, shares, forex, cryptocurrencies, commodities, and ETFs, and a white label platform that can be fully customized and branded for each brokerage.