CoolBitX raises $16.75M Series B to help crypto exchanges comply with FATF's 'travel rule'

Quick Take

  • Asian blockchain security startup CoolBitX has raised $16.75 million in Series B funding
  • The startup wants to help crypto exchanges comply with FATF’s ‘travel rule’ via its solution Sygna Bridge
  • CoolBitX CEO Michael Ou told The Block that he is “confident” the solution will be well-received by crypto exchanges around the world

Asian blockchain security startup CoolBitX has raised $16.75 million in a Series B funding round from notable investors.

The round was led by Japanese financial services giant SBI Holdings, with participation from Monex Group, Korean crypto exchange BitSonic and Taiwanese government's National Development Fund.

With the fresh capital in place, Taiwan-based CoolBitX plans to market its compliance solution Sygna Bridge beyond the Asia-Pacific region. The solution helps crypto exchanges comply with the Financial Action Task Force's (FATF's) "travel rule."

Travel rule implementation

The clock to comply with the FATF's travel rule is ticking fast as the June deadline approaches. The rule requires crypto exchanges to share sender (originator) and receiver (beneficiary) information for transactions of above $1,000 -- to help law enforcement agencies track suspicious transactions.

CoolBitX's Sygna Bridge, launched last October, allows crypto exchanges to share and transmit required compliance data via an application program interface (API). "When the transaction of data takes place, the originato