In mid-January of 2019, Malaysia’s Ministry of Finance Lim Guan Eng announced the implementation of new regulations pertaining to the Cryptocurrency exchanges in Malaysia. Starting 15th January, exchanges are required to adhere to the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 or risk the possibility of a RM10 million fine and 10 years jail time.
To date, there are more than 40 cryptocurrency exchanges registered, and the revised guidelines categorise cryptocurrency exchanges as Digital Asset Exchange Operators. In the 8 essential requirements, one of the requirements necessitate that cryptocurrency exchanges maintain a robust risk management system to ensure a high degree of security and reliability. The list of requirements that cryptocurrency exchanges need to comply to can be found here: Guidelines on Recognized Markets
From the perspective of Cynopsis Solutions, we noted on the 8 essential requirements, and one of the requirements is the necessity for cryptocurrency exchange to maintain a robust risk management system to ensure a high degree of security and reliability.
Cynopsis Solutions utilises Amazon Web Services (AWS) reputable cloud computing solutions which is highly secure and reliable, as seen from the many high profile companies that run on AWS cloud computing services. The unique proposition of combining our deep regulatory and Compliance expertise with smart use of functional technologies allows us to provide a complete case management system that not only automates identity management – ID verification using facial recognition software combined with optical character reading (OCR) – but also satisfies the broader regulatory reporting requirements such as client screening (PEP, Sanctions, Adverse Media) and risk assessments. This includes providing the necessary ongoing due-diligence, transaction monitoring and audit trails to meet the increasingly stringent KYC regulatory requirements across the world.
ARTEMIS, ARES and ATHENA – our globally trusted solutions provide comprehensive screening and transaction monitoring services to our clients, ensuring that they receive an all-inclusive compliance solution.
ARTEMIS, our unique Know Your Customer (KYC) automation tool is designed to help our clients meet regulatory requirements and till date, ARTEMIS has helped over 300 ICO clients with their AML/CTF requirements. To give our clients a comprehensive KYC solution they needed, Cynopsis developed ARES, a digital onboarding platform that provides non face-to-face Know Your Customer (KYC) processes. With this platform in place, businesses can conduct e-KYC in a way that integrates effortlessly with their own systems. Lastly, our software ATHENA helps to address the need for post-transaction monitoring obligations of e-wallets, combating money laundering and terrorism financing activities in digital currency exchange.
With the ever-changing regulatory landscape, there arise a need to enhance and automate AML/CTF process and RegTech serves an opportunity that can enable industry players to work with regulators efficiently and effectively.
About Cynopsis Solutions
Cynopsis Solutions was established in Singapore in 2014 and offers regulatory technology (reg tech) solutions designed to automate KYC processes. It has operations in Singapore, UK, Taiwan and Vietnam. Cynopsis Solutions is a winner of MAS FinTech Awards 2018 and has been recognized as one of the REGTECH100 – an annual list of 100 of the world’s most innovative RegTech companies as determined by RegTech Analyst, a RegTech intelligence platform.