KYC and AML Requirements for Virtual Asset Trading Are Now in the Spotlight
KryptoGO Compliance and Gaia Information Technology Pioneer a Regulatory Investigation Engine.
As cryptocurrency trading becomes increasingly mainstream, its decentralized nature brings notable advantages: transparent on-chain data, private transactions, and no need for third-party intermediaries. However, these same characteristics also present significant risks — transactions are irreversible, activity is largely unregulated, and the potential for fraud and money laundering is real.
The collapse of FTX and the subsequent fines levied against Coinbase have accelerated global scrutiny of virtual currencies and digital assets. Compliance is no longer optional — it's becoming a matter of survival.
Tightening Virtual Asset Regulations: A One-Stop eKYC/AML Solution as Your Safety Net
In Taiwan, the Financial Supervisory Commission (FSC) officially brought "virtual currency platform and trading businesses" under anti-money laundering (AML) regulations in July 2021, mandating real-name trading for cryptocurrency investment. Businesses are required to implement customer identity verification (KYC), and to date, 26 operators have completed their declarations and implemented real-name systems — with more reportedly in the process of applying.
At a New Year press conference on January 12th, FSC Chairman Huang Tian-mu stated that since crypto businesses interact with banks for fund flows, the current regulatory focus is on tracing customer information back through bank KYC processes as an effective tool for anti-money laundering.
In response, major Taiwanese cryptocurrency exchanges have been rolling out real-name authentication. ACE Exchange requires users to complete at least a Level A identity verification — including national ID verification and facial recognition — before they can receive, transfer, or trade digital assets. Oursong similarly mandates identity verification for users who wish to convert OSD to other currencies for withdrawal, or whose cumulative deposits or NFT sales reach 2,000 OSD (USD). Binance, the world's largest cryptocurrency exchange, has also affirmed its commitment to KYC compliance to provide users with a safer, higher-quality experience.
In short, Know Your Customer (KYC) and its digital counterpart eKYC are now legally required — and strengthening KYC processes has become a critical safeguard for businesses. For end users, it also serves as an important assurance of transaction safety, enabling them to use exchange platforms with greater confidence.
ACE Exchange Leverages a One-Stop eKYC/AML Solution to Improve User Registration Experience
ACE Exchange is Taiwan's first fully licensed and compliant exchange, offering the widest range of financial products on the market. Users can easily buy and sell major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and USDT using New Taiwan Dollars, 24 hours a day. Beyond trading, ACE also offers diversified financial tools such as dollar-cost averaging, the widely popular Grid Trading Bot for automated low-buy/high-sell execution, and yield-generating products like Dual-Currency Investment — bringing DeFi concepts into a CeFi framework. ACE additionally provides the most comprehensive cross-chain services of any Taiwanese exchange.
To meet eKYC/AML requirements, ACE adopted KryptoGO Compliance's one-stop solution to optimize user onboarding and streamline ongoing compliance reviews.
1. Improved User Registration Experience
Traditional identity verification required users to manually input information from their ID documents — name, ID number, and so on — which then had to be manually reviewed by internal staff to verify document authenticity and confirm the applicant matched the document. This process was time-consuming and prone to human error.
KryptoGO Compliance partnered with Jumio, a global leader in AI-powered identity verification, to provide a fully automated onboarding process — including facial recognition, document authenticity detection, liveness detection, and OCR text recognition. This eliminates the friction of manual registration and reduces the risk of errors in human review.
2. Faster Identification of High-Risk Clients, Reducing Operational Time
Once identity has been verified, KryptoGO Compliance uses AI cross-referencing and keyword recognition to generate risk recommendations, allowing businesses to quickly filter client lists and flag those requiring further review.
When conducting background investigations, traditional compliance processes involved reviewers manually reading through news articles one by one, printing them out, and highlighting relevant content by hand. KryptoGO Compliance combines web scraping with AI-powered Natural Language Processing (NLP) to automatically identify and highlight key persons mentioned in articles, while filtering out irrelevant names such as journalists, police officers, or other interviewees. The system also allows businesses to define custom negative news keywords — such as embezzlement, insider trading, conviction, money laundering, or terrorist financing — and automatically flags any relevant matches.
3. One-Stop Data Search: No Place to Hide for Blacklists
KryptoGO Compliance integrates with the Dow Jones Risk & Compliance database — one of the world's largest commercial data repositories — and connects to 15+ additional data sources in a single platform. Compliance teams no longer need to open multiple browser tabs to check different sources. Business registrations, legal case databases, Wikipedia, sensitive watchlists, and more can all be searched in one place, with relevant content easily clipped and annotated. Blacklisted individuals and entities have nowhere to hide.
Additionally, KryptoGO Compliance's AI-driven risk scoring provides businesses with actionable recommendations to quickly filter and prioritize clients requiring deeper scrutiny.
4. Audit Trails and One-Click Compliance Reports — Never Fear a Regulatory Inspection Again
The KryptoGO Compliance team brings together expertise in finance, regulation, and technology, including two internationally certified Anti-Money Laundering Specialists (CAMS). The team meets regularly with the FSC and incorporates client feedback to continuously refine its "Customer Potential Risk Score" as a reliable reference for compliance officers.
Every review action on the KryptoGO Compliance platform is automatically logged, creating a full audit trail. Compliance reports can be generated with a single click and saved within the system or exported as a PDF — ensuring businesses are always prepared for regulatory audits, with no scrambling when authorities come knocking.
By implementing KryptoGO Compliance's one-stop AML solution, ACE Exchange fully automated its document verification process. For high-risk cases, AI-powered automated screening reduced processing time by 83% — and full risk review reports compliant with regulatory requirements can be generated in a single click, dramatically improving onboarding and review efficiency.
KY-A-B-C: KryptoGO Compliance's Pioneering Financial Regulatory Investigation Engine
KryptoGO has independently developed the world's first automated financial regulatory investigation engine, leveraging Natural Language Processing (NLP) and AI learning models to deliver a comprehensive eKYC and AML solution. By automating the customer review process with AI and enabling one-click generation of regulator-compliant risk reports, KryptoGO Compliance covers the full KY spectrum:
KYA (Know Your Address)
Blockchain wallet address risk analysis: monitor and assess blockchain wallet transactions using KryptoGO's proprietary address tagging and classification technology.
KYB (Know Your Business)
Corporate due diligence: access hundreds of third-party databases for regulatory screening, ensuring compliance with local regulations in 200+ countries.
KYC (Know Your Customer)
Individual due diligence: verify identities from 200+ countries and 3,500+ types of identification documents online, with AI-powered name screening achieving up to 95% accuracy.
Powered by Gaia Information Technology and Google Cloud
KryptoGO runs on Google Compute Engine (GCP) cloud services provided by Gaia Information Technology, which has helped resolve common Kubernetes (K8s) platform issues. Through Gaia's services, KryptoGO has reduced its overall R&D platform costs by at least 5% — with measurable improvements in system reliability, uptime, and overall cost-effectiveness.
KryptoGO and Gaia Information Technology are co-driving the Web3 industry forward. Together, combining cloud infrastructure with KryptoGO's wallet and compliance services, they are enabling more businesses to build Web3 DApp applications and navigate the challenges and opportunities of the metaverse era.
To learn more about integrating KryptoGO Compliance and optimizing your KYC processes, please reach out — our team will provide tailored recommendations for your system setup.
Media Contact:
KryptoGO PR Manager, Ariel Chang
ariel@kryptogo.com | +886 931 700 861
