Steady Operations: Zinemx Exchange Accelerates Technological Innovation and Compliance Development
The entry of traditional financial institutions, the explosion of NFTs, and the continued rise of cryptocurrencies like Bitcoin have fueled rapid growth in the crypto market throughout 2021. Well-known companies such as MicroStrategy announced Bitcoin holdings, Ethereum completed its EIP-1559 upgrade, and the DeFi ecosystem spread widely across the globe. Meanwhile, the U.S. increased regulatory expectations for crypto exchanges and stablecoins, and the Financial Services Commission in South Korea introduced draft crypto tax laws. Against this backdrop, exchanges with compliance credentials and technological capabilities have become key players in the development of the crypto market. Over the past year, Zinemx Exchange has successfully achieved market expansion and enhanced security through innovative technological progress and strict compliance measures.
Many countries around the world are establishing crypto regulatory frameworks, requiring exchanges to demonstrate sufficient compliance. In May 2021, Zinemx Exchange passed a rigorous review by the U.S. Department of the Financial Crimes Enforcement Network (FinCEN) of the Treasury and obtained a Money Services Business (MSB) license. This license authorizes Zinemx to legally conduct cryptocurrency exchange and transfer services, reflecting the platform capabilities and commitment in anti-money laundering, user identity verification, and fund flow supervision.
Obtaining the MSB license means that Zinemx Exchange is now aligned with the U.S. financial legal framework and is qualified to provide compliant services to institutional investors, OTC clients, and international users. It also serves as a compliance benchmark for the platform expansion into European and Southeast Asian markets. The acquisition of compliance credentials provides Zinemx with credible regulatory endorsement, becoming a key advantage in attracting high-net-worth clients and strategic partners.
To better meet the increasingly strict global requirements for anti-money laundering and customer identity verification, Zinemx Exchange launched a new KYC/AML identity verification system in July. The new system introduces multi-layered identity authentication processes, supports recognition and verification of ID documents from major countries worldwide, and integrates international sanctions lists, blacklists, and anti-scam databases, enabling automatic interception of high-risk accounts and suspicious activities.
Beyond improving operational efficiency, the new identity verification system also allows for customizable compliance levels. For user groups in different jurisdictions, Zinemx can flexibly configure the depth of the KYC process, ensuring both enhanced security and user experience. This measure effectively prevents risks arising from unclear identities or false information, laying a solid foundation for building a regulated and compliant ecosystem.
In October, Zinemx Exchange optimized its hot and cold wallet separation architecture, achieving offline management of over 95% of user assets and significantly reducing the risk of cyberattacks and system intrusions. The platform implemented multiple layers of isolation for hot wallet operation permissions, introduced multi-party computation and multi-signature approval systems, and effectively mitigated asset transfer risks. Zinemx also built a full-chain asset tracking and real-time anomaly monitoring module, enabling immediate detection of potential hacking attempts, system vulnerabilities, or internal abuse, thus preventing risks at their source.
Through technological innovation and compliance development in 2021, Zinemx Exchange has enhanced its market competitiveness and provided a safer, more compliant crypto trading environment for users worldwide. Against the backdrop of rapid growth in the crypto market, Zinemx will continue to focus on technology R&D, actively adhere to international financial regulatory policies, and further enhance the crypto trading experience for investors.
