Regulatory requirements for crypto exchanges get tighter all around the world and in Liechtenstein. LCX just announced four new partnerships with technology providers to enhance its compliance suite.

Liechtenstein Crypto assets Exchange LCX announced four partnerships to improve its Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) processes. In September, the exchange has announced partnerships with Regula Forensic, Elliptic, BioID and Pliance.

Regula Forensic: secure document verification

The partnership with Regula Forensic aims at “enhancing compliance, reducing fraud, and ensuring a frictionless customer experience,” reads the press release. Regula is a global manufacturer of devices and software for authenticating personal documents, banknotes, and securities.

LCX will work with Regula to integrate secure document verification as part of biometric authentication required to meet regulatory checks when onboarding investors.  In particular, LCX will use Regula’s digital forensic technology to comply with the regulatory requirements brought about by the Due Diligence Act (DDA) Liechtenstein. Liechtenstein’s Blockchain Act also requires all companies providing services in connection with tokens or virtual currencies to adhere to stricter money laundering supervision, implement the FATF standards and advanced due diligence.

Elliptic: blockchain monitoring tools for crypto compliance

The partnership with Elliptic aims to “advance crypto compliance and strengthen LCX’s blockchain analytics.” Elliptic provides crypto-asset risk management solutions for crypto businesses and financial institutions worldwide. The company assesses risks related to money laundering, terrorist fundraising, fraud, and other financial crimes. 

The partnership is part of LCX’s efforts to “develop a new proprietary compliance suite,” according to the press release. LCX will work with Elliptic’s blockchain monitoring tools to prevent the potential unlawful use of its platform and to comply with regulations such as the EU’s 5th Anti-Money Laundering Directive (5AMLD) and know-your-customer (KYC) regulations as per the Due Diligence Act (DDA) and Blockchain Act.

Monty Metzger, Founder and CEO of LCX, comments, “The integration of Elliptic in our new KYC and AML process will enable us to achieve the highest levels of compliance while increasing operational efficiency and reducing application processing costs. We will continue to invest heavily in AML and KYC and aim to set a benchmark in the crypto industry.”

BioID: facial recognition and liveness detection technologies

BioID is a biometrics provider from Germany. It provides facial recognition and liveness detection technologies, enabling LCX to implement Anti-Money-Laundering (AML) compliant digital identity verification for institutional and retail users. LCX states, “this system will improve our registration process and enable protection against Deepfakes and Image Spoofing.”

“With more than 20 years on the identity verification market, we see great synergies with our partner LCX, who demonstrates remarkable innovative strength to cater the need for regulatory compliance in the professional crypto market,” says Ho Chang, BioID’s CEO.

Pliance: a risk-based approach to AML

Pliance is a fintech company based in Sweden that provides smart RegTech solutions. Their tools deliver protection by combining sanctions lists, Politically Exposed Persons (PEP), and global watchlists into a single dataset. LCX says, “the new system enables us to follow a risk-based approach to AML” recommended by the Financial Action Task Force (FATF) and several regulatory frameworks.

So, to sum it up: Four new partnerships with innovative FinTech’s to step up KYC and AML. That should put LCX into an excellent position to ensure regulatory compliance in a rapidly changing regulatory environment.

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