As Upbit Developer Conference (UDC) 2021 - one of Asia's largest annual blockchain developer conference hosted by Upbit operator Dunamu - unveiled on YouTube for another year of digital spectacle, all eyes turned to center stage with 18 global industry leaders weighing in on major blockchain topics: DeFi, NFTs, smart contracts, payments, enterprise solutions, and central bank digital currencies (CBDCs).
Jay Park, CEO of Dunamu's blockchain subsidiary Lambda256, appeared in a keynote session underscoring Luniverse's RegTech blockchain technology as a solution for regulatory issues - a key barrier that companies face in increasing adoption and scalability in blockchain. The blockchain and cryptocurrency industry has been under scrutiny for compliance with the FATF Travel Rule, Anti-Money Laundering (AML), with mounting pressure from international watchdogs such as the Institute of International Finance (IIF) imposing standards for transfers of virtual assets.
Already in its fourth year, the conference drew over 7,100 participants between 2018 and 2020, with over 95 sessions and over 600 corporations discussing pressing issues shaping the blockchain landscape.
Here are some of the key takeaways from his session, in announcing the latest upgrade to its blockchain solution, Luniverse 2.0.
Challenges of regulatory compliance
- Current blockchain services are undergoing a major hurdle in complying with shifting regulations on virtual asset providers around the world, as well as other legal risks, leading to limitations in scalability.
- Blockchain technology, which by concept, is an open, distributed ledger that can record transactions in a transparent and immutable way, could step in as a solution in reducing friction in detecting fraudulent and criminal behavior.
Innovation in RegTech by Luniverse 2.0
1. VerifyVASP
VerifyVASP - an FATF Travel Rule solution based on a decentralized protocol that allows for secure and instant data-sharing among alliance members. Through APIs, it applies the regulatory protocols of IVMS101 (Intervasp Messaging Standard 101) for virtual asset providers.
2. KYC Validator
A solution for KYC (Know Your Customer) that utilizes a KYC sharing chain for consortium nodes, as well as a controllers for KYC EOAs (Externally Owned Accounts) for credibility. Lambda256's controller enables enterprises to process transactions that complies to institutional standards.
3. FDS (Fraud Detection System)
A reporting solution for fraudulent or suspicious activities on the blockchain, providing KYC Contract accessibility at the API G/W level. "While FDS uses big data and AI to analyze and find varying patterns, blockchain requires a different protocol," says Jay Park, CEO of Lambda 256. "Blockchain accounts vary, and we have a patented technology for analyzing which VASPs are spurring transactions. Our solution combines this patented technology to the existing FDS."
4. Luniverse RegTech Consortium Chain
A RegTech-based alliance network for on-chain governance optimized for KYC, AML blockchain data scan. Consortium participants can determine whether their contracts have undergone KYC through the block explorer, and scan blockchain data optimized for KYC and AML.