Wirex and Sumsub Team Up: A Blueprint for the Future of Virtual Asset Regulation and Security

August 26, 2023
Wirex partners with Sumsub to provide virtual asset transfer compliance and secure Transaction Monitoring solutions for customers.

Key Takeaways:

  • Wirex partners with Sumsub to integrate advanced transaction monitoring and Travel Rule compliance solutions.
  • The collaboration aims to meet the Financial Action Task Force’s (FAFT) new regulations effective from September 1, 2023, pertaining to Anti-Money Laundering (AML).
  • Sumsub’s solutions will help Wirex maintain continuous monitoring, which is crucial given that 70% of fraudulent activities occur post-KYC onboarding.

About Wirex

Wirex is a global digital payment platform and a regulated institution, pioneering new dimensions in the fintech world since its inception in 2014. Co-founded by Pavel Matveev and Dmitry Lazarichev, Wirex developed the world’s first crypto-enabled payment card in 2015. With over 6 million customers and an expanding footprint, including the United States, the company has evolved to embrace both Centralized Finance (CeFi) and Decentralized Finance (DeFi) solutions.

About Sumsub

Sumsub is a global full-cycle verification platform that specializes in Know Your Customer (KYC), Know Your Business (KYB), and transaction monitoring solutions. With a client list spanning across multiple sectors such as fintech, e-commerce, and gaming, Sumsub aims to provide comprehensive risk assessment and fraud prevention services.

The Importance of Travel Rule Compliance

The Financial Action Task Force (FAFT) is enforcing new regulations that all Virtual Asset Service Providers (VASPs) must adhere to. These regulations focus on Anti-Money Laundering (AML) practices, mandating greater transparency and accountability. Sumsub’s Travel Rule compliance solution aims to securely transfer necessary information between virtual VASPs while conducting all required KYC and AML screenings.

Pavel Matveev, CEO and Co-Founder of Wirex, said, “We are thrilled to be partnered with Sumsub to ensure seamless compliance with the upcoming regulatory requirements for virtual asset service providers. By utilizing Sumsub’s Transaction Monitoring capabilities and Travel Rule compliance solutions, we’re committed to upholding the highest standards of security and protection for our user verification processes and our users’ virtual asset transactions.”

Beyond KYC: The Necessity for Ongoing Transaction Monitoring

In the virtual asset space, compliance and monitoring don’t stop at the Know-Your-Customer (KYC) stage. According to recent data, 70% of fraudulent activities occur after the KYC onboarding phase, emphasizing the need for continuous monitoring. Sumsub’s Transaction Monitoring solution offers flexible procedures, including risk score calculations, sender/receiver profile analysis, and continuous data checks to safeguard against fraud.

Andrew Sever, co-founder and CEO of Sumsub, stated, “The regulatory horizon is becoming increasingly complex, particularly for firms in the digital asset space. Sumsub is committed to providing advanced verification and compliance solutions that empower businesses to navigate the evolving landscape—beyond the initial onboarding stage. This partnership with Wirex signifies a mutual commitment to maintaining the integrity of virtual asset transfers and ongoing transactions.”

The Synergies of the Partnership

Both companies are giants in their respective sectors and this partnership signifies a blending of two ecosystems. Wirex’s commitment to digital asset innovation finds a perfect ally in Sumsub’s robust verification and compliance services. Together, they aim to offer a holistic and secure virtual asset experience for their customers.

A Step Toward a More Regulated Digital Economy

This alliance is more than just a partnership; it represents a step forward in establishing a more secure and regulated virtual asset economy. As regulations tighten, the collaboration sets a high bar for how companies should be prepared for the future, emphasizing that compliance and security are not mere checkboxes but ongoing commitments.

To learn more about Wirex and Sumsub’s cutting-edge solutions, visit their official websites: Wirex and Sumsub.

Whether you’re a veteran or a newcomer in the realm of virtual assets, staying ahead of regulatory changes and securing your transactions are imperative. And if this partnership is any indicator, the future seems to be in safe hands.

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