TOKEN2049 - World’s First Regulator Approved Crypto Withdrawal Solution - Michael Ou (CoolBitX)

thank you for having me here everyone and good morning today I'm gonna introduce you moving towards the world first regulator proof crypto withdrawal solution before we actually dig into it I would like to first begin with introducing myself so you understand where I'm coming from Who am I to introduce you this solution first of all I'm not a crazy kid with crazy eyes your idea that Ray's crazy amount of ether instead that took a very solid path in 2014 I started the company Kubiak's we saw over a hundred fifty thousand units it's a crypto hairy wallet company and before that even till now I also own a public company in Taiwan called smartest player as you can see on the left hand side it's a 20 year old company that serves its banking cyber security solution to over 50 banks in over 30 countries coming from from that background I learned a lot by working with companies like Visa MasterCard we help Visa MasterCard 15 years ago to develop the so-called one-time password card also known as OTP card or two-factor authentication cards that help users before making any online transaction you need to approve your transaction with that simple device that's proven to be more secure than all type of for software based authenticators such as Google Authenticator or SMS text our clients famously include Bank of America City UBS American Express and with regard certifications from organizations like Japan of financial Authority FSA and if ATF and European Commission so what have I learned what's the legacy to take from this fiat world and bring it to the auction world I learned three things that's vital if you want to build a product for a billion population that's user experience security and most importantly compliance you definitely want to build a product that's so easy to use and as little new things as possible that your users will have to learn so the learning curve is low and security is also important because you definitely want to make sure the trillion-dollar market you're building up is not on top of us vulnerable foundation and compliance is the major topic work and I talked about in the following slides and a biggest statement I want to make before we dive into it is virtual assets are onion in no innovative financial product it's definitely not a heaven for criminals today less than a percent of the American own cryptocurrency while more than 55% of the traditional market like stock mutual funds pension retirement funds etc so how do we close that gap now people are naturally skeptical 84% of business executives surveyed on cryptocurrency expressed a desire for greater regulatory certainty a few months ago there was a news that some American crypto investors was later required to pay the tax after months of crypto trading which results in the actual loss also just last month Russia announced trading anonymously is officially illegal now so these are the kind of things that stopped investors having new investors from going into this market because they are not sure what's coming after them afterwards 67% of business executives say private key management's and storage is appeared to be the top risk I wonder how many of you have used the hairy wallet or software wallets and I'm sure when you use any of those you will go through a painful moment that you have to write down your recovery C phrase such as our love Ken Bozak yeah our friend just told us he lost his recovery it's not funny but that's some issue we cannot solve if you want to bring this market to mass adoption to mainstream population because we've tried and it's proven that having users memorizing their own recovery C phrase is just not feasible it's impossible we've tried with our friends our parents it just doesn't work that way and apparently security breaches are seen as the most pressing threats in the past 12 months reports said there's over 1 billion US dollars worth of crypto has been lost and imagine that's happening another financial product market for example stock market or ETF market you would cause a panic so regulations are imperative for Verger assets and entering today's virtual asset market is too difficult for most of the new adapters here's a list of questions a new basis with Google before they enter if they have the time how do purchase cryptocurrency which exchanges to go to what's a private key what kind of wallets are secure enough that process we need to definitely simplify the world we foresee in three years five years time would be just like we now go to a bank after opening your account a banker would come and say do you want to invest in insurance ETF or crypto that's how easy it should be one day how do we get there the biggest roadblock for that level of mass adoption is actually the anonymity itself because by regulation central banks and authorities and effective require institutions to be very clear where the funds are coming from and where the funds are going to if institutions are not able to do this what are the consequences there is a famous the Four Horsemen of cyberspace that is drug dealing terrorism financing video file what's the other one money laundry and money Larry then would cause the biggest issue in any of the financial market that is price manipulation so a lot of you might say no we already have a solution in the market that's stopping the above concerns that is when you go to an exchange for example finance or Infinix you will be required to do the KYC practice you will submit your personal information for the exchange to prove who you are to link the funds to your identity however that's only good enough until the day the users withdraw the crypto out of the exchange so what happens if you want to withdraw could go out as a change right now you can enter any random crypto address to the destination box and then the exchange will prove it and then send it to wherever you want them to both the exchange itself and authorities have absolutely no idea where that phone is actually going to so after working for years our company Kubiak's is proud to announce that we've come up with a solution it's a fully compliant virtual acid eco system that works to increase their recognition of virtual assets as regulated and safe financial products and the eco system focuses on four major functions first it's a real identity wallet for every address there's a identity behind it just like in the current Fiat banking world every behind every every suite code there's a bank and behind every bank account number there's a person so all the transactions are linked to that specific address you can trace its belong to a specific person a natural person second it's the universal know your customer proc practice it solves another issue I'm sure a lot of you have many accounts in different exchanges in different countries so you will naturally experience this pain again you have to submit the know your customer documents over and over again and sometimes they reject you submit again and try it another time sometimes they take weeks so with this solution in place you only have to do it once and then by bringing this solution to different exchanges with a few clicks of the mouse you'll be able to open another exchange account with proven kyc third it's private key management so in the past before users have their own wallet they have to download a software wallet for free or they have to purchase a wallet how a wallet on the Amazon eBay or the official websites of their companies and then when they receive it they will have to generate the private keys themselves memorizing them on a piece of paper themselves again as I previously mentioned it's proven to be impossible so we work out a solution in a Visa and MasterCard an EMV standard it's a certified process certified by who buy EMV and all the central banks in the world where you have a credit card issuer that issues already four hundred million credit cards to the world and the issues all the keys for your users - so in future when you walk into exchange or Bank after opening your crypto account you'll receive a TM a crypto ATM card that belongs to you actually your ATM card via ATM card or via credit card is a wallet they just call it a different name what it does is within that chip inside a credit card it stores your private key - and when you swipe it when you insert it into an ATM or post terminal what it does is actually signing a transaction and what the sorry what did these are Massicotte do really well is that they don't require users to know what exactly private key is it's not necessary for them to understand that so that is the simplification we need to build for this industry and more importantly there's a recovery process here too when you lose your actual wallet private key yeah when you lose it co-op the exchange or the bank you got a wallet from and prove who you are then they will issue you a new wallet with the same keys for it's the transaction screening this process is a little similar to what Chan analyses are doing so and also what current Fiat banking system is doing to by having all the know your customer whitelisted addresses in place is not enough you also need to have cross analysis down the funds flow how the 30 money are going where where they are going because authorities require by law you have to submit those kind of reports to central bank's to F ATF to fight the criminalities the benefits of this solution for exchanges is first global address tracking the whitelist the address second security enhancement because by plugging this solution into an exchange it solves the issue where hackers can potentially hack into users account and then withdraw to the hackers wallet the hackers address so by plugging this solution into the exchange it means exchange can limit the destination address of every account to users own wallet not anyone else which means if I am the hacker and I hack into your account I got your ID password two-factor authentication somehow and the only place I can withdraw your crypto into is still your own wallet also it's low cost for compliance and the benefit for government is what's really missing the market now its transaction monitoring with whitelist database with this solution place financial authorities will be more comfortable and with more confidence about this financial market that they are supposed to watch after for the public and for individual as I mentioned it's good security key backup and universal user kyc verification so later on we will create a new user behavior in critical space changing from the original complicated account opening and kic process to very simplified you go into an exchange open an account you receive your fruit old version of ATM cards now a lot of you might say how is this possible but I'm happy to announce that it's happened already we've partnered with a Japanese biggest Financial Group SBI Holdings it's the biggest Japanese online bank online securities change secure Japanese insurance company and they have their own virtual currency crypto currency exchange platform - and it's got also Japanese crypto license and we have offered this solution to their platform to predict to be their only withdrawal solution which means if you want to withdraw your crypto out of the platform the authority says you can only withdraw to this kyc wallet it's approved ends the world first now the next step was is to standardize this standardize this process and bring it to the rest of the exchanges and the rest of the world eventually so eventually what the world would look like in crypto in my opinion there will be two two directions just like nowadays in the internet world you have surface web and the deep web and dark web the surface web you can browse the censored not not censored the government approved content and on the dark web and deep web you can it's more difficult for public to access but you can browse the more sensitive information and also in the financial world where you have unsure account and offshore accounts unsure accounts it's monitored it's taxed and it's more protected and the offshore accounts it's less protected but less watched the higher cost it's gonna be the same in crypto the world we are creating is the compliant approach where the addresses are no longer anonymous compliant and the ones who are not in the ecosystem will be the offshore the dark web it's less watched possibly not text possibly higher cost they will coexist just like every other spaces thank you I'm Michael here are my Twitter accounts you can follow me and we will be announcing this new project next month thank you