Blockchain security startup CoolBitX raises $16.75 million Series B round

Marco Green
February 27, 2020

Financial conglomerate SBI Holdings Inc. has led a group of investors participating in a Series B, $16.75 million funding round for CoolBitX, a Taiwanese blockchain security company offering services to help crypto-exchanges comply with more stringent global standards for the collection of user information. Other players who contributed to the $16.75 million include Bitsonic, Taiwan's National Development Fund and Money Inc. It also presents a software solution that can help digital asset assistance companies - companies that offer in digital belongings these as Bitcoin - comply with new guidelines issued previous year by the inter-governmental Fiscal Action Job Force to overcome cash laundering. With this rule, crypto exchanges must collect and transfer customers' personally identifiable information (PII) during transactions.

The leader within this funding round was the Japanese financial conglomerate company, SBI Holdings.

This new capital inflow raised CoolBitX's valuation to $91 million according to the company's CEO, Michael Ou.

More than 10 exchanges have signed Memorandums of Understandings (MOUs) with CoolBitX, joining a consortium of VASPs to begin or consider implementing Sygna Bridge. The startup says that 12 cryptocurrency exchanges have already signed memorandums of understanding with it and are now using or testing Sygna, including SBI VC Trade, Coincheck, Bitbank, DMM Bitcoin, BITpoint, MaiCoin, BitoPro and Ace. Japan is among the largest for CoolBitX at the moment.

"As one of the early investors in CoolBitX, SBI Holdings is happy to see the breakthroughs made by the CooBitX team to drive cryptocurrency adoption forward", said Yoshitaka Kitao, President and CEO of SBI Holdings.

Most established financial service providers are preparing to comply with the FATF's travel rule. "Through Sygna and CoolWallet S, we're proud to develop the tools and infrastructure necessary to bridge the gap between the mainstream market and crypto industry". The wallet, which is the same size as a credit card allows users to easily send, receive and store crypto tokens.

Sygna is a compliance-oriented product line of the blockchain startup that provides crypto-based service providers ways to follow the regulatory standards and frameworks of the traditional financing industry.

Other reports by Click Lancashire

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