Japanese E-Commerce Giant Rakuten Partners Blockchain Security Firm CipherTrace
According to a press release issued May 29, 2019, Japanese e-commerce giant Rakuten Group’s subsidiary, Rakuten Wallet, entered into a partnership with blockchain security firm CipherTrace to bolster its upcoming cryptocurrency exchange’s anti-money laundering (AML) measures.
CipherTrace Lands Deal with another Cryptocurrency Exchange
Earlier in March 2019, Japan-based e-commerce conglomerate Rakuten made public its plans to launch a cryptocurrency exchange in Q2 2019. The announcement came after it registered its business with the Kanto Local Financial Bureau (KLFB) and rebranded its crypto-focused subsidiary to Rakuten Wallet.
Now, blockchain security firm CipherTrace and Rakuten Wallet have allied to tackle the widespread problem of money laundering in the cryptocurrency industry.
Commenting on the development, Yoshinao Kiyama, Head of the Risk Control Department at Rakuten Wallet, said:
“We are happy to partner with CipherTrace in advance of our exchange launch. Regulatory compliance and anti-money laundering protections are of the utmost importance, and we believe CipherTrace will provide us the necessary tools needed to best support Rakuten Wallet.”
Similarly, Dave Jevans, CEO of CipherTrace, told that CipherTrace’s impressive track record concerning regulatory compliance, transparency, and customer trust would lead to more participation in the global cryptocurrency market.
Founded in 2015, CipherTrace is a leading blockchain security firm with leading exchanges, banks, investigators, regulators, and digital asset businesses in its clientele. In February 2019, the firm raised $15 million in VC funding before entering into a partnership with Binance to strengthen its AML measures.
Money Laundering: A Tough Cookie to Crack
Many financial institutions across the globe have time and again expressed their fears regarding the use of cryptocurrencies in money laundering with the latest addition to the list being the Central Bank of Laos.
Similarly, In April 2019, reports emerged that tied the late CEO of the now-defunct Canadian exchange QuadrigaCX to a money laundering scam. In the same month, legal authorities in Denmark sent a person to jail for four years and three months who had pled guilty to laundering $500,000 through bitcoin.
This chain of events has reignited the argument about the widespread use of cryptocurrencies in financing illicit activities through dirty money.
Money laundering has proven to be something that even the world of traditional finance has failed to eliminate from its roots. The cobweb of dirty money seems to have also engulfed U.S. President Donald Trump. One can only imagine how deep the threat could run in the “wild west” of cryptocurrencies.