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Crypto exchange Stex deploys ID verification tech from Ondato

Source: Ondato

STEX, a cryptocurrency exchange that has consistently been ahead of the curve on security and compliance, is partnering with Ondato, a leading Know Your Customer (KYC) and Anti-Money Laundering (AML) platform.

The partnership will ensure STEX’s continued customer growth within a compliance environment of imminent new EU regulation of crypto-assets, while furthering Ondato’s reach in the digital assets industry.

STEX is a global trading platform with over 300,000 registered users and more than 400 crypto coins and tokens listed. Regulatory compliance is a high priority for the exchange, which is registered as a Money Services Business (MSB) with the US Financial Crimes Enforcement Network (FinCEN).

The partnership with Ondato empowers STEX with best-in-class remote identity verification solutions and KYC processes to facilitate its future operations in Europe. The EU is in the process of negotiating new regulations on crypto-assets. The Markets in Crypto-Assets (MiCA) regulation will require all cryptocurrency wallets to implement KYC procedures. It complements existing AML rules and aims to enhance financial stability and investor protection in Europe. Observers expect the MiCA regulation to be finalised later this year and to come into effect in 2023.

As well as meeting emerging compliance obligations, accurate customer validation is a key aspect of STEX’s business strategy. The exchange provides reduced trading fees for certain users, with the size of the reduction depending on verification level. The success of STEX’s business model has resulted in rapid customer growth levels and, together with the forthcoming EU MiCA regulation, the platform has now entered a new operating landscape that requires uprated validation capabilities. By switching to Ondato’s scalable solutions, STEX can meet all its new requirements and any emerging needs for the future.

For its side, the new partnership affirms Ondato as a go-to compliance provider as it makes new headway into crypto-specific solutions. The new Ondato OS defines a new technology category that integrates all the KYC and AML tools and services needed by online businesses to onboard customers quickly and safely. It offers financial institutions a significantly better understanding of their exposure, with risk-based management of new and existing customers. The platform also provides enhanced process automation for greater efficiency and lower operating costs, minimising the risk of interventions and fines from regulatory authorities.

Vadym Kurylovych, CEO 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, CEO and co-founder of Ondato, comments: “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.”

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