Coolbitx raises $16M to bring financial compliance to crypto

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Taiwanese blockchain security startup CoolBitX has raised $16.75 million in its latest fundraising round. The startup seeks to help cryptocurrency companies comply with international requirements for the financial industry. The latest round, which was led by SBI Holdings, values the company at $91 million.

As the mainstream financial services world adopts cryptocurrencies, the industry is having to adopt fast to the strict regulatory requirements. CoolBitX has been working with crypto companies in this regard, enabling them to adhere to new standards set by the Financial Action Task Force.

The fundraising round was led by Japanese financial services SBI Holdings. The company has invested in the startup previously, having taken part in the $13 million Serie A funding round in 2018. SBI’s CEO, Yoshitaka Kitao stated in a press release that CoolBitX will continue to grow as more companies seek to integrate crypto.

Other participants in the round include South Korean crypto exchange Bitsonic, Japanese financial company Monex Group and the Taiwanese National Development Fund. For Bitsonic, the investment is strategic and will allow it to stay ahead of the regulatory curve, the CEO Jinwook Shin stated. He added, “In the coming months, the South Korean government is expected to pass regulations that will change the country’s cryptocurrency landscape and this investment in CoolBitX allows us to be on top of these regulations.”

The startup currently offers two products, the first of which is the CoolWalletS physical crypto wallet. The wallet, which is the same size as a credit card allows users to easily send, receive and store crypto tokens. Its most popular product, however, is the Sygna Bridge, a software solution that allows crypto companies to adhere to FATF requirements.

The CEO Michael Ou believes that the success of the solution has been largely due to the evolving crypto regulations, especially in Asia. He told Cointelegraph, “Sygna’s progress has been in line with the strides made in crypto KYC/AML in various Asian jurisdictions, especially Japan. As such, Coolbitx will be establishing a Sygna entity in Japan this year as we are committed to having open dialogues with local stakeholders.”

As adoption of cryptos grows, regulators are taking a keen interest in ensuring that the crypto service providers adhere to international standards. In the near future, crypto platforms will work the same way as digital banking platforms, CoolBitX international manager Elsa Madrolle believes. This will drive the industry forward as users will be certain that they are protected. She added, “FATF-compliant regulation should help draw attention to cryptocurrency as a valid asset class and create more comfort for bigger institutions to consider investing.”