Ondato partners with STEX

The partnership will ensure STEX’s continued customer growth within a compliance environment of imminent new EU regulation of crypto assets, while furthering Ondato’s reach in the digital assets industry. STEX is a global trading platform with over 300,000 registered users and more than 400 crypto coins and tokens listed. Regulatory compliance is a high priority for the exchange, which is registered as a Money Services Business (MSB) with the US Financial Crimes Enforcement Network (FinCEN).

The partnership with Ondato empowers STEX with remote identity verification solutions and KYC processes to facilitate its future operations in Europe. The EU is in the process of negotiating new regulations on crypto-assets. The Markets in Crypto-Assets (MiCA) regulation will require all cryptocurrency wallets to implement KYC procedures. It complements existing AML rules and aims to enhance financial stability and investor protection in Europe. Observers expect the MiCA regulation to be finalised later in 2022 and to come into effect in 2023.  

As well as meeting emerging compliance obligations, accurate customer validation is a key aspect of STEX’s business strategy. The exchange provides reduced trading fees for certain users, with the size of the reduction depending on verification level. STEX’s business model has reportedly resulted in rapid customer growth levels and, together with the forthcoming EU MiCA regulation, the platform has now entered a new operating landscape that requires uprated validation capabilities. By switching to Ondato’s scalable solutions, STEX can meet all its new requirements and any emerging needs for the future, the official press release states.

For its side, the new partnership affirms Ondato as a go-to compliance provider as it makes new headway into crypto-specific solutions. The new Ondato OS supposedly defines a new technology category that integrates all the KYC and AML tools and services needed by online businesses to onboard customers. It offers financial institutions a better understanding of their exposure, with risk-based management of new and existing customers. The platform also provides improved process automation for greater efficiency and lower operating costs, minimising the risk of interventions and fines from regulatory authorities.