[Parker] What is the BonanzaFactory?
Upbit’s real-name accounts, which seemed implausible before the implementation of the Act on Reporting and Using Specified Financial Transaction Information, were introduced on June 23 in partnership with K Bank. Upbit was operating virtual real-name accounts through Industrial Bank of Korea, but couldn’t issue a real-name accounts using its system. But the partnership with K Bank couldn’t resolve anti-money laundering issues, which is one of the biggest concerns of the regulatory authorities. Bonanza Factory, a fintech start-up, is an answer to that concern. Below are edited excerpts from an interview with Bonanza Factory co-founder Kim Yeong-suk. Q. Bonanza Factory is engaged in a business that seems quite unfamiliar to the general public. Could you explain what the company does? “In terms of the compliance service, Bonanza Factory is committed to anti-money laundering and fraud detection system solutions. This requires the trust of companies and the performance of solutions. Since the service is usually provided from a business to a business, it’s not an easy field for the public to be aware of. Put simply, the liance service is a service that primarily protects finance companies and their clients. It is used to prevent the damage done by voice phishing or money laundering. This makes Bonanza Factory a company that provides solutions for preventing damage possible on a virtual-asset exchange.” Q. Anti-money laundering is a key issue ahead of the scheduled enforcement of the Act on Reporting and Using Specified Financial Transaction Information in the second half. How does Bonanza Factory think anti-money laundering issues in cryptocurrency should be resolved? “That’s a difficult question. Anti-money laundering is globally being reinforced, and it is something exchanges should be well prepared for. It is of particular importance in the virtual asset exchanges since assets can be easily transmitted and received across borders. Currently, if someone sends a virtual asset, the recipient can’t refuse it – meaning they can’t refuse to accept it even if it's from a criminal organization. That’s why an exchange that has the account sends it back after grasping the situation. Also, a system that distinguishes legal and illegal assets should be arranged. Personally, I think the connection of anti-money laundering and fraud detection systems amongst exchanges is important. For instance, a joint tracking management system amongst exchanges could be helpful. Developing such a system is what virtual-asset service providers would need for the sustainability of the industry. We believe working on ‘advancement’ is essential. By advancement, we refer to the system developed in the banking industry, which has formed a chronosystem based on many years of competition and partnerships.” Q. What are the plans for Bonanza Factory? “Bonanza Factory plans to provide more advanced solutions for consumer protection systems through March 2021, when the act is scheduled to be implemented. We’re currently actively discussing it with government organizations, financial supervisory authorities and finance companies. By 2021, we will be focusing on preventing financial crimes through virtual assets and creating a safer transaction environment for finance consumers. We plan to provide advanced solutions that offer protective systems for virtual-asset exchanges that are partnered with Bonanza Factory.”