FinTech · Blockchain Compliance · Embedded KYC / AML
“By integrating Solaris Bank’s embedded KYC and Truerix’s VC Gateway, we successfully bridged on-chain identity with EU compliance—without sacrificing user privacy.”
— Head of International Business, Global Digital Asset Exchange
How a Digital Asset Exchange Linked On-Chain Identity to EU Compliance Using Verifiable Credentials
A Chinese Web3 Leader Expanding into Europe
One of China’s leading digital asset exchanges—serving tens of millions of wallet users—sought to expand its presence across the European Union. Their goal: deliver a compliant, trusted, and privacy-preserving Web3 experience aligned with regional regulations.
The biggest roadblock? Strict KYC/AML laws, real-name verification mandates, and the regulatory “gray zone” around on-chain identity.
Industry
FinTech · Blockchain Compliance · Embedded KYC / AML
Year
2025
Case Location
China
Solving the Identity-Privacy Paradox in Web3 Compliance
Entering the EU meant meeting local AML requirements and proving real-world identity ownership of crypto wallets—without violating privacy expectations fundamental to blockchain users.
To solve this:
- The exchange adopted Solaris Bank’s embedded KYC module for financial-grade identity verification
- But KYC alone could not link wallet addresses to verified users in a way that was both trusted and privacy-safe
“By integrating Solaris Bank’s embedded KYC and Truerix’s VC Gateway, we successfully bridged on-chain identity with EU compliance—without sacrificing user privacy.”
— Head of International Business, Global Digital Asset Exchange
A Verifiable Credential Bridge for On-Chain Identity
Truerix introduced its VC Gateway, a cryptographic bridge that binds wallet addresses to bank-verified identities using Verifiable Credentials (VCs) and zero-knowledge proofs.
With this system:
- Wallet users receive a privacy-preserving credential post-KYC
- On-chain interactions remain anonymous, but can be regulator-verified on demand
- The system complies with GDPR, MiCA, and local AML laws, and has gained recognition from regulatory bodies including the UK’s FCA
Faster Approvals, Higher Trust, Seamless Scale-Up
By leveraging Truerix’s solution:
- Approval rates increased by 70% thanks to streamlined onboarding
- Compliance review times dropped from 3–5 business days to under 24 hours
- Drop-off from KYC friction significantly reduced
- The framework now supports advanced services like NFT marketplaces and cross-border stable coin payments
As digital assets face growing scrutiny, identity systems must balance compliance and privacy. This case shows how Truerix enables exchanges to:
- Map on-chain activity to real users without revealing full identity by default
- Unlock access to regulated financial services
- Future-proof their compliance infrastructure while maintaining Web3 values
